The Evolution of the Value-Added Service Concept

The re abide by added service concept has be take place popular recently although it has been existent for the then(prenominal) few decades. The concept was formally introduced by the telecommunication industry, a destination they used for non-core service offerings that they were offering consumers in secernate to provide the consumers an bonus for purchase and as a disparateiation factor for their business.Some of the characteristics of judge added run ar that they are usually the non core service or yield offering for the business. However it is still possible for the value added operate to alkali alone operationally and be offered as a separate harvest-home. some other important characteristic for a value added service is that although it enhances the basic growth/ service offering it should not attempt to cannibalize the main harvesting/service offering for the business, i.e., take the customers away from the main ingathering.The most normally used value added s erve include the followingOffering different types of packaging and sizes for the productProviding specific service levels for the products with specific service level agreements for work Rewarding the consumers for their loyalty to the brand by giving them gifts and developing buy at buy programs Providing specific training and education for the product and service or a value added service center like a uphold line or a customer support center for the clients. They are about performing all of those activities as close to the end consumer as possible. (Impact of Value Added Service Center, 2002)Provide different types of qualities for the product according to the requirements of the consumer. Premium pricing can be charged on these quality levels.Providing efficient and speedy delivery service with order trailing facilityIn the recent years however the concept of value added services has changed. previously consumers expected the core product to be the product itself, but with out delay consumers tend to expect the product to strike specific type of extra services and characteristics in them which were previously only considered value added services. These value added services have flat become rudimentary in nature and the consumers now expect the product to have the value added services.Moreover the value added characteristic has similarly changed talking form of customization for the consumer. An example explaining this change is previously we used to have active phone with the basic capability of dialing for calls and receiving calls on a fluid device. Then the SMS, a VAS, was introduced which enabled consumers to send text messages to other people. Now the mobile phone have digital camera, mp3/mp4 players and an operating system which also were introduced as Value added services but now have become an intrinsical feature of the product it self.The reason for the change in the dynamics relating to value added service offering has been mainly re payable to the consumers perception of the products and their expectations. They have come to expect certain kind of vale added services to be a component of the product itself, even though it is actually a value added service. This has lead to customization for many consumer goods taking place where business are utilise niche marketing strategies to provide products and services which are very specialised and customized and in natureThe value added services offered have evolved largely also due the technology available to the companies as easily. They have tried to differentiate their product/ service offering by making their operations more efficient and investing in technologies which have let them achieve comparative advantage. unity of such technological enthronement has been in the packaging industry. Evolution isnt a theory in packaging its a fact of life. Corrugated and turn up carton converters stake their survival on evolving their menu of value-added services to ass ure the changing needs of their customers. That can require a substantial investment in technology. (The Evolution of Relationship Selling, 2005)In the future as well as the dynamics of consumer consumption decisions and purchase decisions change the value added services offered by corporations and businesses will tend to evolve and change in order to respond to the latent and apparent needs and requirements of the consumer.References(2005), The Evolution of Relationship Selling, poster board Packaging.Mylonopoulos, N. A., Sideris, I. A., (2006), Growth of Value Added Mobile Services Under Different Scenarios of industry Evolution, Electronic Markets (2002), The Impact of the Value Added Services Center, Warehousing Management Dupin, C., (2002), gross sales Evolution, JoC Week