Package Concept of Service product


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The PACKAGE CONCEPT of Service product – suggests that what you offer to the market si a bundle of different services – tangible and intangible. There is a core service and around it are built the auxiliary or facilitator service. Without this the service would collapse (a bell boy in a Hotel). Yet another service is the supporting service – it is used to increase the product value (a car rental in a hotel).

The basic product is not equivalent to the service product which the customer perceives, which is in fact based on customer’s experience and evaluation. Therefore there is a need for an augmented product – like

Accessibility (number and skills of personnel, convenient timing, location, infrastructure etc.,)

Interaction with service organization (Between employees and customer, with physical and technical resources, with other customers)

Consumer participation.(how well the customer is aware about the process of service delivery, his willingness to share information and use service equipments)

The package should also include the management of service image through encouraged word of mouth and market communication.


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