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Product Strategy Options Product Life Cycles Product Life Cycles Characteristics of Services Customer participation Simultaneity Perishability Intangibility Heterogeneity The customer is more involved in the delivery of services than products and can play an integral role Providing services means that you must pay attention to the service facility Service Design Services are consumed simultaneously (as they are provided) A service is a perishable commodity (can’t be saved) The full utilization of service capacity is a management concern Demand for services is often cyclical Services are not tangible things Difficult to patent Customer relies on reputation since there is no product to touch or try out There are variations of service between customers Direct customer-employee contact Moments of Truth Moments-of-Truth Computer Company Hotline Documents for Services Designing a Service The “design” process is never finished. Modifications or innovation in the service delivery system should be introduced as needed System Elements Structural Managerial Designing a Service Structural Elements Delivery system Facility design Location Capacity planning Designing a Service Managerial Elements Service encounter Quality Managing capacity and demand Information Designing a Service Generic Approaches Production-Line Approach Customer as Co-producer Customer Contact Approach Information Empowerment Production-Line Approach Limited discretionary action of personnel Division of labor Substitution of technology for people Service standardization Customer as Co-Producer Self-service Smoothing service demand Customer Contact Approach Degree of customer contact Separation of high- and low-contact operations Information Empowerment Employee empowerment Customer empowerment Customer Participation refers to the fact that the customer is more involved in the delivery of services than products. When you produce a car, the customer does not come into the factory and intera
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