Utility: fitness for purpose (what the customer receives) ;
Warranty: fitness for use (how it is delivered)
- Core of the service concept
- From customer’s perspective value consists two core components:
Utility: Fitness for purpose, which is utility (what the customer receives) -> functionality offered by a service to meet a particular need -> increase performance average of an organization
Warranty: Fitness for use, which is warranty (how it is delivered)-> a promise or guarantee that a service will meet its agreed requirements
- Availability, capacity, continuity and information security that are necessary to meet customers’ requirements -> reduces the performance variation of an organisation
-> Customers cannot benefit from something that is fit for purpose but not fit for use, and vice versa!