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Determine what actions and reactions customers expect the firm to provide Group these activities into CORE and SUPPLEMENTARY service elements Evaluate how well the organization is performing on each one, if, indeed, management even responds to each of the customers requirements Redesign existing service package for each market target, to meet their expectation for performance and value (within price and profit constraints)

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Shostacks Molecular Model : Passenger Airline Service

Intangible elements

Tangible elements

Vehicle Service Frequency

Transport Pre & Post Flight Service

In flight Service

Food & Drink

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The Flower of Service

Information Consultation Payment

Core Product surrounded by clusters of Supplementary Services

Billing

CORE

Order Taking

Exceptions

Hospitality

Care-taking

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Information
What product will best meet their needs Where to get it - and direction to get there How to place order Business hours, price, usage instructions Sales conditions (include law and regulations)

Through :

Employees (who are not always as knowledgeable) Printed notices, brochures, instruction books Videotapes, touch-screen video displays, software-driven tutorials

Consultation
Advice Auditing Personal Counseling Tutoring/Training in product usage Management or Technical Consultancy

Through :

One-on-One Tutorials Group training

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Order Taking
Applications
- Membership in clubs or programs - Subscription service (e.g. utilities) - Prerequisite-based service (e.g. credit, college enrollment)

Order Entry
- On-site fulfillment - Mail/telephone order for subsequent fulfillment

Reservations
- Seats - Tables - Rooms - Rentals of vehicles or other equipment - Professional appointments - Admissions to restricted facilities (e.g. exhibitions)

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Hospitality : Taking Care of the Customer

Greeting Food and beverages Toilets and washrooms Bathroom kits Waiting facilities and amenities - Lounges, waiting areas, seating - Weather protection - Magazines, entertainment, newspapers Transportation Security

Safekeeping :
Looking After the Customers Possessions

Caring for possessions customers bring with them - Child care - Coat room - Pet care - Baggage handling - Parking facilities - Storage space - Valet parking - Safety deposit/security Caring for goods purchased (or rented) by customers - Packaging - Cleaning - Pick up - Refueling - Transportation - Preventive maintenance - Delivery - Repairs and renovation - Installation - Upgrade - Inspection and diagnosis
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Exception :
Special Requests in advance of Service Delivery - Childrens needs - Dietary requirements - Medical or disability needs - Religious observance - Deviation from standard operating procedures Handling Special Communications - Complaints - Compliments - Suggestions Problem Solving - Warranties and guarantees against product malfunction - Resolving difficulties that arise from using the product - Resolving difficulties caused by accidents, service failures, and problems with staff or other customers - Assisting customers who have suffered an accident or medical emergency Restitution - Refunds - Compensation in kind for unsatisfactory goods and services - Free repair of defective goods

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Billing : Payment :
Self Service
- Exact change in machine - Cash in machine with change returned - Insert prepayment card - Insert credit/charge/debit card - Insert token - Electronic funds transfer - Mail a check

Periodic statements of account activity Invoices for individual transactions Verbal statements of amount due Machine display of amount due Self-billing (computed by customer)

Direct to Payee or intermediary

- Cash handling and change giving - Check handling - Credit/charge/debit card handling - Coupon redemption - Tokens, vouchers, etc.

Automatic deduction from financial deposits (e.g. bank charges Control and verification
- Automated systems (e.g. machine readable tickets operate entry gate) - Personal systems (e.g. gate controllers, ticket inspectors)

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OUTSOURCING SUPPLEMENTARY SERVICE :

Alternative Strategy
Jack-of-all Trades does everything

Selective outsourcing

Outsource all but core competence

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Information Credit

Consulting

CORE

Order Entry

Help-line Transport

Food Service

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