Question

1.Choose a specific service product you are familiar with (e.g., Starbuck’s) and identify its core product and supplementary services.

2. After a service failure, companies consider compensation as part of their service recovery strategies. Discuss the general guideline for compensation.

subject is service marketing.

Answer 1

1. The core products refers to the basic product or the service for which the organisation has establish its business for. The supplementary services on the other hand means all of the facility as well as enhacing services which would help the organisation reach to its customers and provide value for its strategic management. Thus, taking the example of Starbucks only, the organisation offers beverages and coffee beans as theirbcore product. It is known for providing and using the high quality coffee beans and have been working effectively to provide the vest coffee in the world which regardless of the fact would also increase their cost because quality is assured. The suplementary services are the customer sitting arrangement, atmosphere, different baked items and food services being essentially provided in this coffee shop. One major supplementary customer serving service is writing their name on the coffee glass, which makes the person feels more attracted towards this brand.

2. Some of the guidelines which are to be effectively followed while compensating your customers because of the failure of serving them would be:

1. Not to panic: The first guideline would be to not create an issue. Customers do understand that sometimes mistakes happen. But showing them the organisational chart and blaming them is not an effective way of compensating them. Always ask what they want, what went wrong and how and what you can do to make things better for the customer anyhow.

2. Avoid assuming the solution a customer wants: Never assume what the customer would want or how you can make the problem go away. This would just make the problem bigger. Give them options, let them give you feedback and tell you what you can do to make things right. In this way, you are actually compensating for the mistake you made and not troubling the customer for assuming the solutions they would need or not.

3. Don't strive for fairness: At last, never strive for fairness and ask who did the mistake or any other questions about who is right or wrong. One customer is enough to make the company fall apart. Think about the goodwill and long term goals and always try to make your customer happy. Never blame anyone, not your employees neither the customer. If any employee did the mistake, it is still the responsibility of the organisation to understand mistakes happen and fixed it anyhow.