0 Pricing Strategies for Services

8.1 Look carefully at costs and pricing issues and develop a servicepricing strategy)

8.2 Discuss the user outlays

8.3 Look at pricing and Demand

8.4 Apply “Putting Pricing Strategies into Practice”

2-

10.0 Service Positioning and Design

10.1 Review “The Need for Focus”

10.2 Develop a service strategy for the organization. (What does it do

now and what could it do in the future?)

10.3 Develop a positioning map and repositioning map (if appropriate)

10.4 Apply “Creating and Promoting Competitive Advantage”

10.5 Apply “New service Development

Please indicate in details EACH and EVERY SINGLE POINT dont miss ANY point

The comparison will be in terms of only these points

Use this pdf file for more information about the mentioned points

http://myweb.csuchico.edu/~evu/Education/Chapter%2010%20Service%20Positioning%20and%20Design.pdf

These questions must be ALL answered in the paper during the comparison process

Questions That were asked to the managers of both hotels during interviews :

1 – what are your demand cycles ? Please specify your peak season

> And low demand seasons

>

> 2- what is the pricing strategy adopted regarding each demand cycle ?

>

> 3- do u intend to minimize other costs incurred by users ? I.e. * Additional monetary costs associated with service usage. ( Travel to service location ,parking ,phone , wireless internet …)

> * Time expenditures ,especially waiting lists and queuing

> *unwanted mental and physical effort ( special transportation program) ( flexibility )

> * negative sensory experiences and place ambiance

>

> 4- What are your traditional pricing tasks ? I e ..selling price , discounts , premium memberships , offers , Credit items., …

>

> 5- what’s your main focus ?

> *( provide very limited range of services to a narrow and specific market segment ) OR

> *(provide wide range of services concentrating on a narrow market segment ) OR

> *(offer a narrow range of services to a fairly broad market ) OR

> *( serve broad markets and provide a wide range of services )

>

> 6- what are the main customer’s needs you offer that are not offered by your competitors. ? Discuss in details

>

> 7- Discuss how do u keep each of the following points up to the standards of your market segment to reach a perfect positioning strategy .

> A) Product attributes

> B) Price / quality relationships

> C) Reference to competitors

> D) Usage occasions

> E) User characteristics

> F) Product Class

>

> 8) Do u consider a repositioning strategy ? I e * adding new services or abandoning certain offerings and withdrawing completely from some markets OR developing new technologies

>

> 9) What are the New service development are you considering ?

–Facility Location (based upon proximity to customers)

–Facility Layout (depends on the presence of the customer at the location)

–Product and Process Design (Covers both the intangible and tangible aspects of the service offering)

–Scheduling (how the workers are assigned to the service)

–Quality Control, Measures and Time Standards (focus is on the needs of the customer)

–Demand/Capacity Planning (depends on the type of service and the immediacy of matching supply to demand)

–Customer Contact Level (physical presence and length of time that a customer spends with a service provider)

–Industrialization (the substitution of technology for people)

–Front Line Personnel Discretion (denotes the flexibility of the service employee while interacting with a customer)