Assignment 1

1) Choose one product and one service. Use them to describe the basic differences between products and services described in the reading. You can approach this by describing a single brand or an entire industry. Your choice.

Services can be described in a number of ways. One definition of a service is that it is an ac of performance offered by one party to another. Retail is one type of service which involves the process of selling consumer goods or services as well as a high focus on customer service. It is the performance of the retailer that is intangible and therefore a service. From quality customer service to selling and managing stores - retailers provide benefits to the consumers while they shop.

Unlike service, a product is a good that is the core output of any industry. Products deliver benefits to the customers who purchase and use them. While a good can be described as an object or device, as in a bag from Tory Burch, a service is the actions or performances that the employee of the Tory Burch store performs to sell the customer that bag.

2) Eight components of service management are described in the reading (please note that they are referred to as 8Ps--these are different than the 7Ps of service marketing we discussed briefly on Monday). Consider the service you chose in the previous question through the lens of these eight components and describe how they apply to each.

The 8P's on integrated service management described in the reading are: Product Element, Place and Time, Process, Productivity and Quality, People, Promotion and Education, Physical Evidence, and Price and Other Costs of Service.

Product Elements:

At Tory Burch product elements are when the managers determine that the bags, shoes, clothing and accessories are the core products of the store and the quality customer service and one on one care each employee shows for the costumers are the services that are desired from these high end shoppers.

Place and Time:

Tory Burch has it's own boutiques and outlets as well as an online store. Through their boutiques and outlets, Tory Burch must make sure that all channel distributions are well planned to make sure that products are delivered and received on time so that boutiques do not sell out of certain products. By focusing on speed and convenience, Tory Burch has a service delivery strategy that also allows customers to order bags and items that are sold out of their color or size in that boutique and have it delivered to their home.

Process

As part of their service delivery strategy, Tory Burch has designed a process that makes delivering products to stores, outlets and customers homes possible as well as fast.

Productivity and Quality

At Tory Burch - quality is a main focus. This brand was created as an American lifestyle brand recognized by many from its signature T emblem to the many different colors, patterns and styles in each collection, Tory Burch has created a service quality that differentiates itself from the competitors. As well as for productivity, which goes hand in hand with quality, the brand also continues to launch new and innovative prints, styles, and pieces each season that keep customers interested and loyal to the brand.

People

Tory Burch focuses on delivering top quality customer service and experiences through their staff. At Tory Burch boutiques and outlets, the managers and staff have to present themselves as well as the face of the company. It is the people that represent the company and therefore deliver the quality of the brand. At Tory, the employees create personal relationships with their clients as well as personalized portfolios and gifts. Through these interactions between the customers and employees, a stronger sense of customer loyalty is created.

Promotion and Education

With a strong social media presence, Tory Burch is able to promote and sell new and upcoming designs and bags. By showcasing their line on their social media sites, Tory is able to communicate with their customers about the brand, as well as educate them on the mission and nature of the brand.

Physical Evidence

The company promotes its eclectic and colorful styles through its storefront with the large T-logo emblem and the interior of the store. When walking into Tory Burch, customers experience the vividness and boho-chic of the brand from the wild wallpapers, to the comfy furniture and dressing rooms, not to mention the colorful bags and clothing throughout the store.

Price and Other Costs of Service

To ensure top quality customer service and benefits, Tory manages their costs compared to other top brand competitors like Michael Kors, Gucci and Kate Spade. The company focuses on spending where it would benefit the company and their customers as well as uphold their Social Responsibility through their Tory Burch Foundation - an entrepreneurial school for women.

3) The reading introduces value, values and ethics as particularly important in the sphere of services. Do you agree that the fundamental nature of services described in the chapter amplify the importance of these three factors in services (versus products). Why or why not?

I agree that the fundamental nature of services described in the chapter amplifies the three factors because the service is what sells and makes a product. In retail such as Tory Burch, it is the quality of the manager, employees and company leaders service and how they carry out the different components that can make a product even better than it actually is. This is what makes some products and brands “better quality” and “higher end” than others (not including the materials and quality of the product compared to others).

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