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    Chapter1 dw Chapter1 dw Presentation Transcript

    • By Wilson, Zeithaml and Bitner Chapter 1 Services Marketing
    • Objectives for chapter 1: Introduction to services
      • Explain what services are and identify important trends in services.
      • Explain the need for special services marketing concepts and practices and why the need has developed and is accelerating.
      • Explore the profound impact of technology on service.
    • Objectives for chapter 1: Introduction to services (continued)
      • Outline the basic differences between goods and services and the resulting challenges and opportunities for service businesses.
      • Introduce the expanded marketing mix for services and the philosophy of customer focus, as powerful frameworks and themes that are fundamental to the rest of the text.
      • Introduce the servuction system model and the concept of the services triangle
    • Examples of service industries
      • Healthcare
        • Hospital, medical practice, dentistry, eye care
      • Professional Services
        • Accounting, legal, architectural
      • Financial Services
        • Banking, investment advising, insurance
      • Hospitality
        • Restaurant, hotel/motel, bed & breakfast
        • Ski resort, rafting
    • Examples of service industries (continued)
      • Travel
        • Airline, travel agency, theme park
      • Others
        • Hair styling, pest control, plumbing, lawn maintenance, counseling services, health club, interior design
    • Figure 1.2 Tangibility spectrum Tangible Dominant Intangible Dominant Salt Soft Drinks Detergents Automobiles Cosmetics Advertising agencies Airlines Investment Management Consulting Teaching Fast-food outlets Fast-food outlets            
    • Insert Table 1.1 from text % of GDP attributable to service 2006
    • Why study Services Marketing?
      • Service-based economies
      • Service as a business imperative in manufacturing and IT
      • Deregulated industries and professional service needs
      • Services marketing is different
      • Service equals profits
      • Service and technology
    • How technology has influenced the development of services
      • Provided the potential for new service offerings
      • Offering new ways to deliver service
      • Enabling customers and employees
      • Extending the global reach of services
      • The Internet is a service
      • The paradoxes and dark side of technology and service
    • Table 1.2 Eight central paradoxes of technological products Source : D. G. Mick and S. Fournier, “Paradoxes of Technology: Consumer Cognizance, Emotions, and Coping Strategies,” Journal of Consumer Research 25 (September 1998), pp. 123–47.
    • Table 1.3 Goods versus services Source : A. Parasuraman, V.A. Zeithaml, and L. L. Berry, “A Conceptual Model of Service Quality and Its Implications for Future Research,” Journal of Marketing 49 (Fall 1985), pp. 41–50.
    • Characteristics of services compared to goods Intangibility Perishability Simultaneous production and consumption Heterogeneity
    • Implications of intangibility
      • Services cannot be inventoried
      • Services cannot be easily patented
      • Services cannot be readily displayed or communicated
      • Pricing is difficult
    • Implications of heterogeneity
      • 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
    • Implications of simultaneous production and consumption
      • Customers participate in and affect the transaction
      • Customers affect each other
      • Employees affect the service outcome
      • Decentralization may be essential
      • Mass production is difficult
    • Implications of perishability
      • It is difficult to synchronize supply and demand with services
      • Services cannot be returned or resold
    • Challenges for services
      • Defining and improving quality
      • Designing and testing new services
      • Communicating and maintaining a consistent image
      • Accommodating fluctuating demand
      • Motivating and sustaining employee commitment
    • Challenges for services (continued)
      • Coordinating marketing, operations, and human resource efforts
      • Setting prices
      • Finding a balance between standardization versus personalization
      • Ensuring the delivery of consistent quality
    • The Services Marketing triangle
    • Traditional marketing mix
      • 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
        • Price
        • Place
        • Promotion
    • Expanded mix for services The 7 Ps
      • Product
      • Price
      • Place
      • Promotion
      • 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.
    • Expanded mix for services The 7 Ps (continued)
      • 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.
    • Table 1.4 Expanded marketing mix for services
    • The servuction system model