6.5.4 Product - Service Mix¶
Just like the marketing mix, which involves the combination of product, price, place, and promotion, the service mix is a concept that focuses on the various components of a service offering. The service mix refers to the range of service elements that a company combines to satisfy customer needs and enhance their overall experience. It includes five different types of offerings, each representing a distinct combination of product and service elements.
Five Types of Offerings in the Service Mix¶
1. Pure Tangible Good¶
At one end of the service mix continuum, we have pure tangible goods. These are products that have no significant service component accompanying them. Examples include routine purchases like rice, pulses, toothpaste, soap, and other FMCG products. These items are sold and consumed with little to no additional service involvement.
However, as markets evolve, even pure tangible goods are increasingly paired with service components. For example: - In large format retail stores, displays, point-of-sale arrangements, and visual merchandising play a significant role. - When these products are available online, filters (brand, price, customer feedback) and other services like delivery options become part of the offering.
Thus, while the core of a pure tangible good offering has no service, businesses increasingly find ways to integrate service elements to enhance the customer experience.
2. Tangible Good with Accompanying Service¶
Next on the continuum, we have tangible goods with accompanying service. Here, products are the primary focus, but they come with essential service components. These offerings typically involve technologically sophisticated products such as cars, white goods (washing machines, refrigerators), and computers.
In this case, the service components might include: - Display rooms for product viewing. - Delivery and installation services. - Repair and maintenance services. - Warranty and training on product usage.
For example, a car cannot be easily purchased without the service of having a nearby service center or spare parts availability. Without these services, sales would likely decline. This highlights how the service component plays a critical role in the customer’s decision-making process.
3. Hybrid Offering¶
The hybrid offering strikes a balance, giving equal importance to both the product and service components. A classic example is a restaurant, where the food is the primary product, but the ambience, service quality, and personalized experience are equally important.
In such a hybrid offering, both the tangible product (food) and the service elements (staff interaction, ambiance, etc.) contribute to the overall customer experience. Both are essential for delivering value, and a deficiency in one can significantly affect the perceived quality of the offering.
4. Service Major with Accompanying Goods¶
On the other side of the continuum, there are offerings where service is the major component and the goods or physical products are secondary. Examples include airlines, rail travel, and insurance policies.
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Airlines: The core offering is the transportation service, but the service may also include complementary goods such as refreshments, the ambience of the flight, or even the hygiene of restrooms.
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Insurance: The core service is the coverage provided by the policy, but the paperwork associated with it becomes a minor product aspect. The convenience of a paperless process is often a key factor in customer preference.
Here, the service is dominant, and the goods or physical products (like tickets or insurance documents) serve as minor supporting elements. The overall customer experience is heavily influenced by the quality of the service rather than the product.
5. Pure Service¶
At the extreme end of the continuum, we have pure services, where no significant product is involved. These are offerings where the service is the core value, and there is little to no physical product. Examples include: - Consulting services - Clinical psychology - Babysitting - Massage therapies
In these cases, the service is completely intangible. There is no ownership of a physical product; customers pay for the experience or expertise provided by the service. The focus is entirely on the delivery of the service itself, with little to no tangible component involved.
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