Question

Service Bundle Short Essay (needs to answer all the following questions in 250-400 words so a couple of paragraphs). Be sure to use terms, concepts from the text, and directly relate to supply chain management). Please cite two sources. Thank you!

Define Service Bundle. Choose a Service Bundle. List and describe it’s attributes. Explain why or why not these service bundles may meet the needs of consumer. Explain how you would measure the service bundle. Determine where would you improve on this service bundle?

Answer 1

Service bundle is defined as combining two or more product and services in one bundle with a reward benefit for the customer who purchases it. Telecommunication services, consumer electronics, health care services are some of the industries that are involved in this practice. The result of bundling is higher revenues, lower operational costs and better profits.

Example: Combining Mobile phone and Telecom services into one bundle.

Mobile phones are considered to be too expensive. The problem with the mobile phone industry is that the costs are higher than the percieved value. So one may conclude that there is less scope in the market for mobile phones. However, with the service of mobile company(that connects people around the world at any moment they want) has a high perceived value in combination with low costs. The marketing trick here is to combine the mobile phone (product) and telecom(services) in one bundle. But one the major negative impact of this type of bundling is that it causes environmental pollution as the people throw away the mobile phone(everytime they enter a new contract say once in every two years). So, this is one factor that should be taken into consideration and resolved thereby while designing a mobile- telecom service bundle.