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Service Competition

Service Competition. Service. Some businesses are set up solely to perform services for customers. Like? Postal Services Dentists Massage Therapists etc Value-added services: Activities performed to support the sale of a product or other service. Free Home Delivery etc. Convenience.

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Service Competition

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  1. Service Competition

  2. Service • Some businesses are set up solely to perform services for customers. • Like? • Postal Services • Dentists • Massage Therapists etc • Value-added services: • Activities performed to support the sale of a product or other service. • Free Home Delivery etc.

  3. Convenience • Making some activity easier or more comfortable. • E-shopping. • The comfort of buying a product in your pyjamas is much more appealing then going to the crowded mall. • This is why companies now offer value-added services.

  4. Pizza the Hut

  5. Get Buff at midnight!

  6. Burgers from the King!

  7. Selling Convenience • Limousine • Cleaning Services • Catering Businesses

  8. Degree of Service • Ladies and Gentlemen picture it… you’re in a wonderful salon! What services do they offer? • Which are you going to choose? Turn to page 103 – which airline is better?

  9. Selection • Offering a greater selection of services is another way that companies compete. • Imagine that you live in the 90’s and you’re headed for a rousing evening of home entertainment via the video store: • Blockbuster: dvd, vhs, ps2, n64, sega genesis etc • Ma & Pa’s: vhs, dvd, atari • Wide Selection – large number of different brands • Deep Selection – A lot of one type of brand

  10. Reputation • When it boils down to it, most chain restaurants offer the a similar style of experience. • What sets them apart is often reputation. • Check out trip advisor – it rates local restaurants, often people base their decision strictly upon the advice of complete strangers. • REPUTATION MATTERS!

  11. Price • Price is important in both service and product competition = the lowest wins! • Although, reputation plays a role. A $5 haircut doesn’t sound so hot from Al’s Pancake World, but maybe it would be okay from Chatters.

  12. Price • Specialized services do not have a standard price. • Service Professionals can charge a specific fee based upon clientele and the service providers expertise. • Skating Lessons from me $5 • Skating Lessons from Eberle $500 • Lawyer Fees? • Accounting Fees?

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