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Ch 10 - Services


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Ch 10 - Services

  1. 1. Chapter 10 Module 1 Module 1
  2. 2. Chapter 10 <ul><li>Services and intangible market offerings </li></ul>
  3. 3. Chapter Objectives 1. Describe the characteristics of services and the ways marketers classify services. 2. Appreciate the importance of service quality to marketers. 3. Explain the marketing of people, places, and ideas.
  4. 4. Suppose an airline was considering eliminating pilot uniforms (in favor of suits). As a member of the airline’s marketing department, would you support or object to eliminating uniforms?
  5. 5. Services & Intangibles Both services and other intangibles can be branded and marketed. Concerts Hair cuts Government Museums Zoo Car wash Nail salon Church Health care Legal All services are intangibles, but not all intangibles are services.
  6. 6. What’s a service? A service: intangible products (acts of effort) that are exchanged directly from the producer to the receiver (purchaser). The service provider is inseparable from the service, making the service encounter a primary component. The service sector is growing because it is more cost effective (Outsourcing). intangibility perishability variability inseparability We cannot see, touch, or smell it. We cannot store a service for later use. The service outcome can never be exactly replicated.
  7. 7. End Module 1
  8. 8. Chapter 10 Module 2 Module 2
  9. 9. The service continuum Is the customer or his possession the recipient? Augmented Service Most products: are a combination of tangible and intangible market offerings, i.e., they are both product and service. Core service Housecleaning Includes deep-steam cleaning of carpets Type of restaurant?
  10. 10. Pause: Short Activity <ul><li>List and describe the core and augmented services of each of the following: </li></ul><ul><li>• A personal trainer </li></ul><ul><li>• An accountant </li></ul><ul><li>• A drycleaner </li></ul><ul><li>• A public swimming pool </li></ul><ul><li>Your personal banker </li></ul>
  11. 11. The Service Encounter A service encounter: is especially important for offerings high on the service continuum.... Remember, the service provider is inseparable from the service itself! A service encounter: is influenced by both the person & the physical surroundings. Ever been in a dirty waiting room? This environment is called the servicescape, and includes all components of the environment: parking lot, waiting room, restroom, music, lighting, etc... Servicescapes: can have positive influences on purchase decisions, upselling, service evaluations, satisfaction with service delivery, repeat business, word of mouth, etc....
  12. 12. Pause: Short Task Assume you are a marketing consultant for a local bank. There is a great deal of local competition in the banking industry. List and describe the challenges the bank faces as a service provider. Then, come up with one tactic to address each challenge to give your bank a competitive advantage or point of differentiation. intangibility perishability variability inseparability
  13. 13. Measure Service Quality SERVQUAL: A survey instrument that measures consumers’ perceptions of service quality in terms of: Tangibles - facilities, servicescape Reliability - received what was promised? Responsiveness - willingness to help customers Assurance - knowledge and courtesy Empathy - caring and attention given GAP ANALYSIS: measuring the difference between expectations and actual experiences in the service encounter. CRITICAL INCIDENCE: An analysis of specific complaints that result in dissatisfaction.
  14. 14. SERVQUAL On a 7-pt scale - (disagree-agree) <ul><li>ACME has up-to-date equipment </li></ul><ul><li>ACME employees are well dressed and neat. </li></ul><ul><li>ACME is dependable </li></ul><ul><li>ACME provides services at the time it promises to do so. </li></ul><ul><li>ACME is dependable </li></ul><ul><li>You can trust ACME employees </li></ul><ul><li>ACME employees are polite., etc... </li></ul>
  15. 15. End Module 2
  16. 16. Chapter 10 Module 3 Module 3
  17. 17. Marketing the Intangible ex: marketing places
  18. 18. Marketing the Intangible ex: marketing ideas
  19. 19. Service Recovery Resolving Customer Dissatisfaction: Is a strategic issue. Firms must take quick action to resolve the problem. Who is good at service recovery?
  20. 20. Service Future The service industry: - Is the largest employer of any other type of industry. - Is the fastest growing as services are going global and populations are aging. - Is being expanded due to technological capabilities.
  21. 21. End Chapter 10