BACKGROUND: Microsoft Product Support Services (PSS) is the group who answers the phone when you call technical support for help. When you call PSS, the tech support representative will ask you how you're going to pay for the call. Rates vary depending on whether you have a support contract PSS also gives feedback to Microsoft development groups for use in the development of future products or product features. Trish May, the Director of Marketing for the PSS of and her boss, Patty Stonesifer, the…show more content… They included other software companies (e.g., Lotus, WordPerfect), value added resellers (VARs), independent service vendors (ISVs), and firms that developed software for their own internal use. They were prospects for all Microsoft products. THE FORCES OF CHANGE: Financial Performance - By 1990, many software products had reached the “mature” phase of the life cycle. With shrinking margins, producers had no choice but to scrutinize all costs. One prime target for cost reduction was support service. With the average cost of support services for high-end products exceeding 10% of dollar sales, the practice of offering unlimited, free service was doomed. At Microsoft, a defining event came on July 1, 1991 when an Activity Based Costing (ABC) System was implemented. Customer Base - The marketplace for software was becoming more and more fragmented. Given Microsoft’s extensive product line, customers ranged across a broad spectrum from home users to global corporations. Each group not only wanted more customized software but also more customized technical support. The Competition - Competitors were relying upon a variety of approaches to charge customers for telephone service calls. Some sent an invoice following the call. Others charged via 900# or had service engineers take credit card numbers. Alternatively, some competitors either included in software packages or sold separately “incident coupons” that entitled the bearer to make a number
