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Give me essay regarding four I's of service in the Bath and Body Works company, including intangibility, inconsistency, inseparability, and inventory. End with the sentence 'Determining prices using competitive oriented approach is always the best for Bath and Body Works Company and because it operates in a competitive market, relying on step five and six above will be paramount.'
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#Bath and Body Works Company Essay
Bath and Body Works is an American retail store which specializes in producing and selling products such as lotions, Bath items personal care items and house fragrances. Founded in 1990 the company has expanded beyond United States and offers after sale services as well as customer care services as part of selling their products.
So how do the four I’s of service in the Bath and Body Works company? First it is worthy noticing that today businesses have realized that customer care service is an integral component in the marketing and maintaining customers. This is why Bath and Body Works, being a merchandise company cannot evade service provision.
The four I’s in the service provision includes firstly intangibility; meaning that after sale services and customer care services provided by Bath and Body Company are not physical commodities which one can carry home. The second one is inconsistency which implies that whoever provides the service may not be the one to offer the same service always.
The third component is inseparability of the service and the person rendering the service and the last component is the inventory part meaning that the service provider will always have enough stock of knowledge regarding the service to be rendered. Bath and Body Works ensures that inconsistency component is bridged by training all personnel so that they all provide informed quality services.
A gap analysis may be needed in the service and product relation whereby the service provided in terms of information regarding a product should be regularly evaluated so that improvement is done. Gap analysis involves evaluating the target of the company versus where it is at that particular time, this will enable the company to see loopholes that may hinder its progress to where it aims to be and take necessary measures.
According to the kind of products Bath and Body Company deals with, there are many other competitors in the market and therefore its pricing objective should be to maximize long run profit and increase sales volumes. Prices should be set at a competitive rate which should ensure consumers are sustained and the company benefit from economies of large scale. Competitive pricing will foster consumer loyalty in the long run although at first less profit per product will be made.
This strategy pricing will be the only best alternative because Bath and Body Company operates in a competitive type of market where many companies produce alternative products. In determining the prices therefore the cost of producing each product and the prices of alternatives products in the market should be considered. The products the company deals with are consumer products with relative elasticity and therefore any slight changes in price will bring regarding high changes on quantity demanded.
The potential revenue will be determined by the total revenue generated by each product and the cost will involve the production and packaging cost including the cost of services provided. Maximum revenue is attained when there is the highest difference between the set price and the cost of producing the product. In this case there are six steps to this goal; the first step is to set a price low enough to be accepted in the market and high enough to maximize profit
The second step is to set a price that can stand competitor’s prices in the market by researching on other company’s prices for alternative products. The third step is to analyze the consumer characteristics so as to create a price that is acceptable to consumers. The forth step involves determining the company’s desired position to charge high for high quality products or otherwise.
The fifth step involves testing the market first with lower prices then determining consumer’s level by the sales made. The final step is to determine the optimal price based on market response and time should be taken to set the prices for maximum sustainable revenue.
Determining prices using competitive oriented approach is always the best for Bath and Body Works Company and because it operates in a competitive market, relying on step five and six above will be paramount.
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The essay discusses the four I's of service in the Bath and Body Works company, including intangibility, inconsistency, inseparability, and inventory. It also talks about how the company prices its products and the effect that competitive pricing has on consumer loyalty.