SERVICEAn act or performance offered by one party to another.

Characteristics

INTANGIBILITY : Services are performances, deeds and efforts which cannot be

felt, sensed or touched.

How do you get customers to take notice of your service when they cannot touch it.

The food was cooked in front of the customer by Japanese chefs, and the décor was that of an authentically detailed Japanese country inn.

INSEPARABILITY:The service providers physical connection to the service being

provided.The customers involvement in the service production process.

The Teppanyaki TableThe average turnover at the teppanyaki table was an hour which was

normally 45 minutes earlier. Above every table was an exhaust hood to remove cooking steam and odors and much of the heat from the griddle. Each table accommodated eight diners with service being provided by a chef and a waitress;each such team handled two regular tables.

After a group of eight had been seated, the waitress would take the order and bring whatever soup salad and beverages were requested after which the chef would appear wheeling his cart with the food items to the table.

Emphasis on selecting and Training Public Contact personnelThe native Japanese chefs were given a three to six month

course in Japan in the English language and American manners as well as the Benihana form of cooking.

In addition to competition among the chefs to perfect their arts in hopes of becoming the chief chef there was also a travelling chef who inspected each unit periodically and was involved in the grand opening on new units.

Use of Multi-Site LocationsBecause of the importance of lunchtime business, management

wanted to be sure that lot of people were nearby or going by both lunch and at dinner.Most units were located in a predominantly business district,though some had easy access to residential areas.Shopping center locations were considered, but had not been accepted by 1972.

HETEROGENEITY:

Impossible for a service to achieve 100% perfect quality on an ongoing basis.

The variation in consistency from one service transaction to next.

Service Standardization and Quality Control

Three simple Middle American entrees: steak, chicken, and shrimp,It virtually had no wastes and could cut food costs to between 30% and 35 % of food sales depending on the price of meat.

Steak, filet mignon,chicken and shrimp – could either be had as single entrée items or in combinations. A full dinner had three, with the shrimp as appetizer. The accompaniments were unvaried: Bean sprouts,zucchini,fresh mushrooms,onions and rice.

PERISHABILITY:

Services cannot be saved,their unused capacity cannot be reserved and they cannot be inventoried.

Motivating Non-peak consumptions

The hours of operations for the 15 units varied according to local requirements.All were open for lunch and dinner, though not necessarily every day for each. Lunch business was important;overall it accounted for about 30% to 40% of the dollar volume despite a significantly lower check average. Essentially the same menu items were served for both meals,the lower menu price average at lunch reflected smaller portions and fewer combinations.

THEODORE LEVITT’S PRODUCT CONCEPT MODELThe different levels are,

1.Core Benefit: Every service provides a core benefit. It is the use or benefit or solution, which he is looking for while going for the service. In other word it is the need or want that is being fulfilled.

2.Basic Service product: The intangible service through which the core benefit is received is called the basic service. The service company adds certain statutory features to core benefit and transforms it into basic service.

3.Expected Services: Customers expect to get certain service quality or features when they purchase services. Some of these are unwritten features in a good context.

 

4.Augmented Services: The augmented service product consists of the measures taken to differentiate the service from competitors, and provide them with service quality beyond their expectation. These kinds of services are beyond the expectation of the customers.5.Potential service: This includes all the augmented and futuristic product developments. At this level, the service firm tries to find out better ways of delighting customers.

Service kinds with respect to Benihana of Tokyo

Core Benefit Food

Basic Service Hospitality

Expected Service Customization

Augmented Service Hibachi table concept

Potential Service Food processors