Product levels product mixes core facilitating

This preview shows page 8 - 15 out of 26 pages.

Productlevels
Product Mixes:Core & Facilitating ProductCore product :The most basic level of a product.This answers the question:What is the buyer really buying?Facilitating productServices or goods that must be present for the guest touse the core productFor example, a first-class corporate hotel must havecheck-in and check-out services, telephones, arestaurant, and valet service.One important aspect of facilitating products isaccessibility.For example, guests expect a business hotel tohave a business center and it must be accessiblewhen the guests want to uses its services.
Product Mixes:Supporting ProductsCore products require facilitating products but do not requiresupporting products.Supporting products areextraproducts offeredto addvalueto the core product,to helpdifferentiateit,thuspositionit among the competition.For example, in a corporate hotel, a business center or a full-service health spa are supporting products that may help todraw customers to the hotel.The distinction between facilitating and supporting products isnot always clear.Facilitating products for one market segment may be supportingproducts for another.For example, while families may not require restaurants and valetservice when staying at a hotel, business travelers depend on them.
Product Mixes:Augmented ProductThis includes atmosphere, customer interaction with theService Delivery System, customer participation(coproduction), and customers' interaction with eachother.These elements combine with the core, facilitating,and supporting products to provide the augmentedproduct.These elements enhance positioning.The core, facilitating, and supporting products determinewhat the customer receives but not how they receive it.The augmented service offering, combines what isoffered with how it is delivered.
Product Mixes:Elements Create Augmented ProductsAtmosphere:The physical environmentIt can be the customer’s reason for choosing to dobusiness with an establishment.Atmosphere is appreciated through the senses.Customer Interaction with the Service Delivery SystemManagers must think about how customers use theproduct during each of the three phases ofinvolvement: joining, consumption, & detachment.Customer Interaction with Other CustomersCustomers become part of the product offered.The issue of customer interaction is a serious problemfor hotels and resorts.Customer CoproductionInvolving the guest in service delivery can increasecapacity, improve customer satisfaction, and reducecosts.
Ch.11 Pricing
Pricing Approaches:Value-Based PricingCompanies base their prices on the product's perceivedvalue.Perceived‑value pricing uses the buyers' perceptions ofvalue, not the seller's cost, as the key to pricing.

Upload your study docs or become a

Course Hero member to access this document

Upload your study docs or become a

Course Hero member to access this document

End of preview. Want to read all 26 pages?

Upload your study docs or become a

Course Hero member to access this document

Term
Fall
Professor
BECK
Tags

Newly Uploaded Documents

Show More

Newly Uploaded Documents

Show More

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture