services marketing chapter 1

services
deeds, processes, and performances provided or coproduced by one entity or person for another entity or person
A service is
any activity or benefit that one party can offer to another which is essentially intangible and does not result in the ownership of anything.
physical product
a service production may or may not be tied to a
service industries and companies
typically classified within the service sector whose core product is a service
-lodging (mariott)
-transportation (american airlines)
-financial services (charles schwabb)
-health care (clinic)
*SELL SERVICES AS THEIR CORE OFFERING
services as products
represent a wide range of intangible product offerings that customers value and pay for in the marketplace. are sold by service companies and by non-service companies such as manufacturers and technology companies.
-macys sell services such as gift wrapping and shipping
-petsmart sell pet grooming and training services
customer service
service provided in support of a company core product.
-companies do not typically charge for this
-can occur on site as in when a retail employee helps a customer find a desired item or answers a question.
-can also occur over internet or phone
-IS ESSENTIAL TO BUILDING CUSTOMER RELATIONSHIPS
-SHOULD BE CONFUSED WITH SERVICES PROVIDED FOR SALE BY THE COMPANY
derived services
the value derived from physical goods is really the service provided by the good, not the good itself.
-razor provides barbering services
-pharmaceutical provides medical services
-computer provides information services
service industries make up __% in the u.s. gross domestic product
80
services tend to be more
intangible
manufactured products tend to be more
tangible
fast food outlets are
classified as a service also have tangible components such as the food and packaging
services marketing is
different
Pure tangible goods
toothpaste
Tangible goods accompanied by one or more service
computer and warranty
Hybrid offer consists of equal parts of goods and services
restaurants
Service with accompanying minor goods
air travel
Pure service
haircut
technology and globalization
most profound trends affecting services marketing today
most basic distinguishing characteristic of services is
intangibility
intangibility
-services cannot be inventoried
-services cannot be easily patented
-services cannot be readily displayed or communicated
-pricing is difficult
4 characteristic of services
intangible
heterogeneous
simultaneous production and consumption
perishable
heterogeneity
Because services are heterogeneous across time, organizations, and people, ensuring service quality is challenging. Quality actually depends on many factors that cannot be fully controlled by the service supplier, such as the ability of the consumer to articulate his or her needs, the ability and willingness of personnel to satisfy those needs, the presence (or absence) of other customers, and the level of demand for the service. Because of these complicating factors, the service manager cannot always know for sure that the service is being delivered in a manner consistent with what was originally planned and promoted.

-Service delivery and customer satisfaction depend on employee and customer actions
-Service quality depends on many uncontrollable factors
-There is no sure knowledge that the service delivered matches what was planned and promoted

simultaneous production and consumption
what happened in the real time. Services need to be decentralized so that the service can be delivered directly to the consumer in convenient locations: spa, day care, customers may also affect each other.

-Customers participate in and affect the transaction
-Customers affect each other
-Employees affect the service outcome
-Decentralization may be essential

perishable
-It is difficult to synchronize supply and demand with services
-Services cannot be returned or resold
Challenges for Services
Defining and improving quality
Ensuring the delivery of consistent quality
Designing and testing new services
Communicating and maintaining a consistent image
Accommodating fluctuating demand
Motivating and sustaining employee commitment
Coordinating marketing, operations, and human resource efforts
Setting prices
Finding a balance between standardization versus customization
marketing mix
elements of an organization controls that can be used to satisy or communicate with customers

All elements within the control of the firm that communicate the firm’s capabilities and image to customers or that influence customer satisfaction with the firm’s product and services:

-product
-place
-price
-promotion (distribution)

expanded marketing mix
-people
-physical evidence
-process
people
All human actors who play a part in service delivery and thus influence the buyer’s perceptions: namely, the firm’s personnel, the customer, and other customers in the service environment.
physical evidence
The environment in which the service is delivered and where the firm and customer interact, and any tangible components that facilitate performance or communication of the service.
process
The actual procedures, mechanisms, and flow of activities by which the service is delivered—the service delivery and operating systems.