Toyota's Service Design

The three elements of Toyotas service-product bundle are:
-Tangible service- The manufacturing of automobile and providing a place for the customer to purchase the car (ex. Toyota Dealership).
-Psychological benefit- The satisfaction and security of owning your own source of transportation.
-Physical good- Automobile

Toyota dealerships have a provider-routed service design in which the customer is given very little options on how the service is delivered. Customers come to Toyota dealerships and meet with sales representatives to determine the best car for them. There are no other options for customers to purchase Toyota’s cars unless they buy a privately owned dealership.

Toyota deals with customer contact be separating their manufacturing and selling. Manufacturing has very low customer contact, and employees are not required to possess strong communication skills. Technology is used to create an efficient assembly line flow. At Toyota dealerships, however, customer contact is very high. Employees are required to have excellent customer service and communication skills. Here, technology is used for communication and order processing.
The Company offers a service recovery in the form of warranties. Customers are able to purchase a warranty coverage plan with every new car purchased from Toyota. For example, the 60,000-mile Powertrain warranty, which protects the customer if the engine, transmission, airbags, or front/rear wheel drive fails before 60,000 miles, may accompany the purchase of a Toyota Camry. All of Toyota’s warranty coverage plans can be found at: http://www.toyota.com/toyotaSearch/search?keyword=warranty&locale=en