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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