Session 3

Question 1

Service =

Answer 1

core product + supplementary services + delivery system

Question 2

5 different service levels:

Answer 2

1. The first and basic level answer to the core customer value: « What does the client buy? ».
2. At the second level, marketers must transform the core customer value to a basic product.
3. The third level consists of a set of attributes and conditions buyers normally expect when they purchase this product.
4. The fourth level consists of creating augmented product that will give sense to the customer.
5. The fifth level is the future product potential evolution.

Question 3

Flower of Service -

Answer 3

A core product surrounded by a cluster of supplementary services

Question 4

To develop product policy and pricing strategy, managers need to determine:

Answer 4

1. Which supplementary services should be offered as a standard package accompanying the core product.
2. Which supplementary elements could be offered as options for an extra charge.