Marketing of services ch 14

services
deeds, efforts, or performances (intangible). evaluated subjectively prior to purchase
good
objects, devices or things. evaluated objectively prior to purchase
pure good/pure service/mix
car/education/home depot
Intangibility – marketing problems
-patent protection
-communication
-pricing
Intangibility – strategies
-stress tangible cues
-use personal sources
-stimulate word of mouth
-create image
-use cost accounting
-post purchase communications
goods timeline
produced –> purchased –> consumed
services timeline
purchased –> produced –> consumed
Inseparability
the service is being produced at the same time that the client is receiving it (eg during an online search, or a legal consultation

-cannot separate production from the consumer
-customer is involved in the production process
-other customers are involved in the production process
-active influence (crying children on
plane
-passive influence (customers who
show up late for customers)

inseparability – marketing problems
-outcome dependent on customers
-centralized mass production
inseparability – strategies
-selection and training
-managing
–multi-site locations
heterogeneity/inconsistency (variability)
variability inherent in service delivery process(there’s always going to be inconsistencies in service delivery businesses)
-services occur in real time with no chance to intercept problems
-quality control measures are often too late
heterogeneity/inconsistency -marketing problems
-standardization
-quality control
combat heterogeneity with
-selection of the “right people”
-training
-mystery shoppers
-awards for performance
heterogeneity/inconsistency – strategies
-customize service
-industrialize service
perishability – marketing problem
inventory
perishability – strategy
adjust demand and capacity
perishability – control of demand
-differential pricing
-cultivating non-peak demand
-complimentary services
-reservation systems
perishability – control of supply
-part time employees
-peak time efficiency
-routines
-increased consumer participation
-shared services
-facilities for expansion
determinants of expected service quality
past experiences
marketing communications
peers
service quality evaluation factors
expected services
perceived services
gaining new customer vs keeping a customer
it is 5 times cheaper and easier to keep a customer than to gain a new customer
benefits of customer satisfaction
-positive word of mouth
-customers purchase frequently, defect less
-insulation from price competition
-attract better employees
service quality
the expected and perceived quality of a service offering
determinants of perceived service quality (the 5 service quality dimensions)
-tangibility
-reliability
-responsiveness
-assurance
-empathy
customer satisfaction vs service quality
short term vs long term measure of performance
5 service quality dimensions – tangibles
-equipment and materials
-modern looking, visually appealing facilities
-personnel and communications
-employee appearance, visually appealing pamphlets
5 service quality dimensions – reliability
consistency and performance dependability
5 service quality dimensions – responsiveness
commit to provide services in a timely manner
5 service quality dimensions – assurance
competence, courtesy to customers and security of operations
5 service quality dimensions – empathy
ability to experience another’s feelings as ones own
service model
service quality –> customer satisfaction –> customer loyalty –> profits –> service quality
perishability defintion
The way in which service capacity cannot be stored, saved, returned, or resold once rendered to a customer.
intangible definition
Incapable of being perceived by the senses.
key characteristics of services
-intangibility
-inseparability
–perishability
-varaiblity