1) Describe Xpresso Lube’s service package.
According to the textbook “Service Management 9th ed. (Bordoli, Fitzsimmons)”, the service
package consists of {Supporting facility, Facilitating goods, Information, Explicit services and
Implicit services} (page 18).
1. Supporting facility: the physical resources that must be in place before the service can be
offered.
• Lifts in place of pits, so that customers can get up to their vehicles and see the
issues for themselves without getting dirty.
• The gentrified gas station repurposed into a café and clean, desirable resting
places, providing amenities so that the wait won’t be as bothersome.
• The neighboring auto repair facility “University Auto”, these businesses
complement each other and provide synergy; for example, offering rides to and
from work during the weekdays in order to reduce and redistribute the work load.
2. Facilitating goods: The material purchased or consumed by the buyer, or the items
provided by the customer.
• Coffee from the café
• Car oil
3. Information: Data that is available from the customer or provider to enable efficient and
customized service.
• Prior knowledge:
▪ Oil from Goodyear
▪ Coffee beans from the plantation
▪ Music, environment from personal life
• The fact that other businesses are not only bland and indistinguishable in terms
of prices and amenities, but also are not always honest.
• As the customers are now enabled to see what’s wrong with their vehicles, they
can provide their own feedback as well.
4. Explicit services: The benefits that are readily observable by the senses and that consist
of the essential or intrinsic features of the service.
• The main service – oil change
▪ Honesty
▪ Quality
• The secondary service – café
▪ Coffee
▪ Resting places
• The complementary service – rides
5. Implicit services: Psychological benefits that the customer may sense only vaguely, or
the extrinsic features of the service.
• Live music
• Top grade coffee
• Desirable environment, both indoors and outdoors
• The fact that customers can see what’s being done and see the issues for
themselves portraits the business as reputable
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Being within walking distance of other noteworthy businesses, coupled with the
aforementioned amenities, makes passing the waiting time easier
2) How are the distinctive characteristics of a service operation illustrated by
Xpresso Lube?
As stated in page 13 of the book, the distinctive characteristics of a service are {customer
participation, simultaneity, perishability, intangibility, heterogeneity, and nontransferable
ownership}.
1. Customer Participation
• Customers drive to the shop in order to get service
• Customers can voice their opinions regarding the services
• Customers can act as mediums of advertisement, spreading the word of mouth
2. Simultaneity
• As one’s car’s oil is getting changed, one can enjoy a cup of coffee or rest; as well as
going for a stroll shopping or even being at work, retrieving their car afterwards.
3. Perishability
• Underutilized equipment
• Oil might expire
• Employees/technicians might be underworked
4. Intangibility
• The sense of comfort provided by the amenities
• The sense of trust provided by the work ethics
5. Heterogeneity
• Each customer will have a unique experience depending on their own demands
6. Nontransferable Ownership
• Their car “having its oil changed” is not transferable
3. What elements of Xpresso Lube’s location contribute to its success?
It is adjacent to “University Automotive”, a car repair shop owned by Charlie. University
Automotive provides rides to and from work to customers, redistributing the work load in the
whole week instead of weekends.
The fact that the place used to be a gas station means it has a rather large area to work with.
That enabled Charlie to establish the café and outdoors resting places.
It is close to the university; this provides a large demographic.
It is also in walking distance of some noteworthy local businesses such as Half Price Bookstore,
Wheatsville Coop food store, Amy’s Ice Cream, and Toy Joy.
4. Given the example of Xpresso Lube, what other services could be combined
to “add value” for the customer?
-
A carwash combined with a café
o The carwash can also be combined with tire check and pump
A combined barbershop and nail saloon
A restaurant combined with a playground for kids
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