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A) Choose one product and one service. Use them to describe the basic differences between products and services described in the reading. You can approach this by describing a single brand or an entire industry. Your choice.
* Service: A service is something intangible, normally an act/performance offered from one subject to another that can also be an economic activity that creates value and offers benefits to the consumer. For example: AAA, a service organization offering consumers roadside assistance, travel consulting, insurance, etc.
* Product: A product is the core output of any industry, it is what the company is producing, offering benefits to the customers who use them. For example: Shoes, a tangible product you can buy or sell. The quality of the shoe depends on who it is made by and how it was made, which will reflect the price of a certain shoe.
B) Eight components of service management are described in the reading. Consider the service you chose in the previous question through the lens of these eight components and describe how they apply to each.
1.Product elements: AAA has many different product elements that come with their services. For example, when a membership is purchased you receive access to travel guidance, auto services (including roadside assistance), help with home and auto insurance, and financial services including: ID protection services, credit cards, and a selection of financial products for domestic trips as well as international travel.
2.Place and time: AAA uses a wide range of placement and time. They have multiple storefront locations available for walk in assistance and consulting. AAA also provides 24/7 roadside assistance, if one's car is broken down or needs any repairs, they even provide mobile apps and online support foe consumers with questions or concerns.
3.Process: AAA uses a certain method or process when you inquire their services. If you are not a member when signing up you can do so online or in person. When you are already a member you reach out to AAA as you need them. For example, if my car were to break down in the middle of the highway on my way home, I would call AAA give them my membership number and within minuets I would be getting direct car help, and that works for any other service they provide.
4.Productivity and quality: To ensure AAA's productivity and quality as a company, they make sure that the services provided are quick, simple for the consumer, and satisfying.
5.People: AAA's has a high interaction with people because their main goal is to provide help and services to their consumers in the need of car, insurance, or travel information/help. To keep their consumers highly satisfied AAA offers savings and discounts just for being a member.
6.Promotion and education: AAA must market themselves in a way that their array of audience feels comfortable depending on them for their assistance. AAA uses commercials and ads to let possible consumers know of their services offered. As I previously mentioned AAA merges with companies like restaurants and local businesses offering discounts if you are a member, encouraging local consumers to become a member.
7.Physical evidence: AAA holds an in-store, online, and in person appearance, which they have to uphold to a high standard, influencing consumers to come in, become a member or even have members renew their membership.
8.Price and other costs of service: AAA competes with other insurance or help services, but what keeps them on top is their benefits given to members at a low membership rate which is paid yearly.
C) The reading introduces value, values and ethics as particularly important in the sphere of services. Do you agree that the fundamental nature of services described in the chapter amplify the importance of these three factors in services (versus products). Why or why not?
* I do agree that the fundamental nature of services stated in the text influence or amplify the importance of services and products because with good moral value and ethics both consumers, employees, and the company can survive detrimental treatment or abusive. These go hand and hand with consumers and companies, great value will produce a good customer which will in the end enhance the companies revenue and business.
