Question

Please answer this in at least 300 words. Not copy and paste from another sources please. In what ways do you think the development of new products differs from the development of new services?

Answer 1

Products are tangible , while services are intangible in nature. Thus, when a company wants to realize the octcome of the developments done in their products, such as introducing a new flavor of ice-cream or introducing a new model of car. The organization has to focus on the feedback and suggestions of customers, invest in research and development, produce the new changed product and introduce it to the market. The manufacturer has to be innovative in his product design. Earn a competitive advantage over it's rivals and aggressively promote the product.

However, when it comes to service, developing a new service is extremely difficult. The perception of quality of service is different from customer-to-customer. The requirement of service varies from customer-to-customer as well. This difference is not minimal, but large. As a result, while developing a new service, the service provider has to strategically decide on which is the target market. What is the want and desires of the customers? What do the customers seek the most from the service-provider? Training employees on providing new services? or hiring new employees? These all are very complex and require much more detailling and research than introducing a new product in the market. After this, a new service is developed and introduced. This new service needs not only to be introduced using aggressive promotional campaigns but also focus on word-of-mouth publicity which is the most efficient way of building a reputation or maintaining reputation of the organization.