Many services-marketing experts suggest that creating and delivering new services is much more difficult than creating new tangible products and new services differ from product innovations in several important ways.Which of the following best illustrates these differences?
A)for labour-intensive, interactive services, the actual providers (the service delivery staff) are part of the customer experience and thus are part of the innovation
B)most service companies focus on creating only incremental improvements
C)most service companies focus on continuous innovation
D)the new-service development process is often easy for the service customer to observe

Question

Quizplus · Accepted Answer

This option highlights that for labour-intensive, interactive services (such as those offered by hotels, restaurants, and hospitals), the service delivery staff are part of the customer experience and thus are integral to the innovation process. This is not generally the case with tangible products, which tend to be designed and manufactured separately from the people who sell or service them.

B, C, and D are incorrect because they either make generic statements (B and C) that do not capture the differences between service and product innovation, or they are not accurate (D) because the new-service development process is often complex and invisible to customers.

Many Services-Marketing Experts Suggest That Creating and Delivering New Services