*Chapter_10_-_Services_Marketing_A2L

Marketing Services vs. Products

• Intangibility:

  • Services cannot be touched, tasted, or seen.

  • Cues such as atmosphere and images are used to convey value.

• Inseparability:

  • Production and consumption occur simultaneously.

  • Customers have little chance to test the service before use.

  • Lower perceived risk through guarantees/warranties.

• Inconsistency:

  • Services can vary in quality due to human involvement.

  • Standardization and training are key to consistency.

  • Self-service technologies (e.g., kiosks) can replace some human functions.

• Inventory:

  • Services are perishable; cannot be stored for later use.

  • Examples: Ski resorts offer discounted tickets when demand is low.

Gaps Model in Service Marketing

Four Gaps to Assess Service Quality:

• Knowledge Gap:

  • Difference between what customers want and what service providers think they want.

  • Requires effective marketing research to understand customer expectations.

• Standards Gap:

  • Discrepancy between customer expectations and service standards set by management.

  • Staff training and commitment to quality are essential.

• Delivery Gap:

  • Difference between service standards and the actual service delivered.

  • Empowering employees and providing support can help close this gap.

• Communication Gap:

  • Mismatch between what is communicated to customers about the service and what is actually delivered.

  • Clear communication of service capabilities is necessary to manage expectations.

Dimensions of Service Quality (5 dimensions)

• Reliability:

  • Ability to perform the service dependably and accurately.

• Responsiveness:

  • Willingness to help customers and provide prompt service.

• Assurance:

  • Employee knowledge and courtesy; ability to convey trust and confidence.

• Empathy:

  • Personalized and caring attention provided to customers.

• Tangibles:

  • Appearance of physical facilities, equipment, personnel, and materials.

Service Recovery Strategies

• Listen to Customers:

  • Important for customers to feel heard, especially after a service failure.

  • Example: Offering a free dessert to compensate for a bad meal experience.

• Resolve Problems Quickly:

  • Fast resolutions can help preserve customer loyalty.

• Provide Fair Solutions:

  • Employ fair procedures for returns and complaints to maintain customer trust.

Conclusion

• By understanding the unique characteristics of services and implementing effective service recovery strategies, firms can create superior value for customers while enhancing service quality.