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SERVICE COMPETITION
SERVICE COMPETITION
by enhancing or adding services companies can
be more competitive
businesses that add services to support a product
or another service offer value-added services
(ex: appliance delivery)
convenience is important in being competitive
comfort, delivery, speed, etc.
ex: NetFlix, eBay, same day delivery, etc.
SERVICE COMPETITION
Degree of Service
businesses that offer more services are often more
competitive (ex: mattress delivery, hair stylists that
also offer manicures).
however the opposite is also true for customers
looking for the best deal as extra services cost more
(ex: IKEA, Food Basics)
SERVICE COMPETITION
Selection
a company offering greater selection is often a better
competitor
selection can be wide (more brands or types) or deep
(larger quantity of one type of item)
Reputation
because services are intangible the customer cannot
actually examine the service
because of this the reputation of the company is
crucial to competitiveness
SERVICE COMPETITION
Price
customers usually purchase products at the lowest
price
but they may be suspicious of a product of they feel
that the price is too low
the price is also affected by supply and demand
THE PRODUCT/SERVICE MIX
whenever you buy a product you are also paying for
services (storage, transport, etc.)
businesses need to find the right mix of services to
compliment the products they sell
often businesses will add services that are unrelated to
the product to attract customers (ex: restaurants in
stores)
service based businesses may also add products (ex:
popcorn at the movies)
CASE STUDY: MR PLOW