Chapter 4

Chapter 4

1. What is a service product

   • It is a bundle of physical and intangible elements that create value.
     • Core Product: the central component that supplies the principal benefit or solution (example a hotel room for a night).
     • Supplementary services: activities that facilitate the use of the core product or enhance its value
     • Delivery processes: how the components are delivered to the customer

2. Flower of service model

   • Facilitating petals (necessary for delivery)
     • Payment: easy and convenient options (cash, cards, apps
     • Billing: clear, accurate, and timely invoices
     • Order-taking: reservations, check-ins, and applications.
     • Information: directions, prices, terms, and conditions.
   • Enhancing petals (add extra value and apeal):
     • Consultation: advice, counseling, and customized solutions.
     • Hospitality: greetings, food/beverages, and waiting facilities.
     • Safekeeping: protecting customer possessions (parking, lockers, security).
     • Exceptions: special requests, problem-solving, and complaint handling.

3. Branding service products

   • Helps customers understand the value proposition.
   • Differentiates the service from competitors.