Question

Take some failed new service developments as examples (1 or 2 examples) and

=(a) identify which hierarchy of new service categories they are. =(b)Analyze the causes for their failure.

Answer 1

Feautres in the new service product play a crucial part, as they influence the consumer's choice. The product brand, its colour, design or packaging contributes important factors in the consumer's purchase.

a. The new services category belongs to bank services, airline servies, insurance companies etc.

b. The failures are as follows:

• When the services are not defined properly with wrong needs or wants.
• Including incorrectprices for the consumers in contract content. This leads to mispricing of the products.
• Not delivering the products promised in the contract by the end.