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services marketing
the process of planning, delivering, and then improving the individual service acts and performances that create memorable experiences when satisfying a buyer's needs.
product
physical goods, ideas, or service
service
any intangible offering that involves a deed, performance, or effort that cannot be physically possessed; intangible customer benefits that are produced by people or machines and cannot be separated from the producer
customer service
the ability of logistics management to satisfy users in terms of time, dependability, communication, and convenience
Service Product Continuum
From Service dominant (doctor) to Product dominant (grocery store)
Most offerings lie somewhere in the middle
- Product is cheaper in other countries
- High value placed on convenience and leisure
- Services become more specialized
- Developed economies are increasingly service-oriented economies
what is the economic importance of service offerings?
- intangible
- heterogeneous
- perishable
- inseparable
what factors differentiate services from goods?
intangible
a characteristic of a service; it cannot be touched, tasted, or seen like a pure product can
- Cannot be seen, touched, tasted, felt, stored
- Requires using cues to make more tangible
inseparable
a characteristic of a service: it is produced and consumed at the same time
- Cannot inspect out defects ahead of time
- Little opportunity for a customer to test out a service before use
- Lower risk by offering guarantees or warranties
how are production and consumption simultaneous?
heterogeneity
as it refers to the differences between the marketing of products and services, the delivery of services is more variable
perishable
a characteristic of a service: it cannot be stored for use in the future
- Services cannot be produced ahead of time and stored
- If not consumed, revenue potential is lost
- Must carefully manage supply and demand
service gaps model
a managerial tool designed to encourage the systematic examination of all aspects of the service delivery process and prescribe the steps needed to develop an optimal service strategy
knowledge gap
reflects the difference between customer's expectations and the firm's perception of those expectations
- customer expectations for service quality → management perceptions of customer expectations
- Use research to understand consumers' needs
- Do not assume customers are happy
standards gap
pertains to the difference between the firm's perceptions of customers' expectations and the service standards it sets
- management perceptions of customer expectations → standards specifying service to be delivered
- Established policies, performance standards
- Based upon consumer needs
- Educate employees
delivery gap
the difference between the firm's service standards and the actual service it provides to customers
- standards specifying service to be delivered → actual service delivered
- Employees do not perform correctly
- Hire well, train, monitor, and reward
communication gap
refers to the difference between the actual service provided to customers and the service that the firm's promotion program promises
- actual service delivered → service provider communications about service quality
- Commercials, comments from salespeople
- Must reflect actual service
1. Reliability
2. Responsiveness
3. Assurance
4. Empathy
5. Tangibles
what are the 5 dimensions of quality?
reliability
The ability to perform the service dependably and accurately
- Performed correctly
responsiveness
The willingness to help customers and provide prompt service
- Performed on time
assurance
The ability of employees to convey trust and confidence
- Performed "like you know what you are doing"
empathy
The caring, individualized attention provided to customers
- Performed with caring
tangibles
The appearance of physical facilities, equipment, personnel, and communication materials
- Performed in a nice environment
1. product
2. price
3. place
4. promotion
5. personnel
6. process
7. presentation
what are the expanded 4 Ps of marketing?
place
Generally, no intermediaries
- Convenience is important
product
Emphasize the service process
- Build a brand image
promotion
Focus on making services seem more tangible
price
Prices are harder to set and justify
- Use price to adjust demand to supply
process
describes the actions require to get the good or service to the customer
personnel
In person-to-person transactions, more important for services than for goods
presentation
Can have an impact on consumers' judgments of the service quality
- Provide a fair solution
- Resolve problems quickly
- Listen to the customer
how do you increase service recovery?