Mensur Boydaş: Vahdi Boydaş: Services and pricing

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Mensur Boydaş: Vahdi Boydaş

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Mensur Boydaş: Vahdi Boydaş: Services and pricing

  1. 1. Service marketing and Pricing Considerations & Strategies
  2. 2. What is a service/an experience? • A service is a kind of product that is essentially intangible and does not result in the ownership of anything [Too General] • An experience is a kind of a product that is obtained from purchasing and consuming products and services,which is characterized as memorable and personal .[Too specific] – e.g. NIKE town , Rainforest café , Las Vegas hotels (Luxor, Cesar Palace, Paris Paris).
  3. 3. Services marketing • A service is a process that leads to an outcome during partly simultaneous production and consumption (Gronroos, 2001) • Characteristics. – Intangibility, – Perishability, – Inseparability, – Variability. Nature Multidimensional • Company External Marketing Internal marketing Customer Employee Interactive marketing • Management (7p’s and SERVQUAL) Next lecture.
  4. 4. The services marketing management (7P’s) • 4P’s + • • +Process (The embedded essence of a service) + People • + Physical Evidence
  5. 5. SERVQUAL ? ?
  6. 6. Measuring Service Quality SERVQUAL Performance/MOT • • • • • Reliability Responsiveness Assurance Empathy Tangibles Word of mouth Zeithaml et al. 1990 Perceived service Perceived Quality Expected service Personal needs External Past experience communication
  7. 7. Product/Process Development in Services
  8. 8. What is a price? What drives the 2nd [P]
  9. 9. Economical v. Psychological Pricing [Factors affecting pricing]
  10. 10. Econ. Vs. (Product) Value-based pricing

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