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4362ch1 Sp10


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4362ch1 Sp10

  1. 1. Ch. 1 – Understanding Services Marketing<br />Relationships among Company, Customer, Competition:<br />
  2. 2. Services<br />Services:deed, performance, or effort<br />• Services are not things, yet they often rely on things for their performance <br />• Provides added value (e.g., convenience, amusement, timeliness, comfort, or health) that are essentially intangible <br />
  3. 3. What are Services?<br />You pay for hotel room.<br />You pay for the physical therapist to work on your knee.<br />You pay to see a movie.<br />No ownership<br />What are you paying for? Value<br />
  4. 4. Degree of Tangibility<br />salt<br /><br />soft drinks<br /><br />detergents<br /><br />automobiles<br /><br />cosmetics<br /><br />fast-food<br />Intangible<br />Dominant<br /><br />Tangible<br />Dominant<br /><br /><br />fast-food<br /><br />advertising<br />agencies<br /><br />airlines<br /><br />investment<br />management<br /><br />consulting<br />teaching<br />
  5. 5. What are the tangible and intangible components provided by a hotel?<br />INTANGIBLE<br />Interaction with front desk<br />Anticipate needs<br />Prompt reply<br />Training received by staff<br />TANGIBLE<br />Furniture<br />Lighting<br />Cleanliness<br />Carpeting<br />Parking spaces<br />Key determinant of whether product should be classified as product or service: tangibility<br />
  6. 6. Characteristics of Services Vs. Goods<br />Intangibility – most services cannot be seen, touched, held, or put on a shelf.<br />Implications:<br />Greater perceived risk in purchasing<br />Need to add tangible elements<br />
  7. 7. Characteristics of Services Vs. Goods<br />Inseparability– for most services, production and consumption of service occur simultaneously. Customers may be involved in co-production.<br />Implications:<br />Manage customer roles in the service interaction<br />Employees affect the service outcome<br />
  8. 8. Characteristics of Services Vs. Goods<br />Variability– difficult to standardize the quality of service performance<br />Implications:<br />Difficult to provide consistently excellent service<br />Recognize importance of customer service skills. Service is a live performance<br />
  9. 9. Characteristics of Services Vs. Goods<br />Perishability – Most services cannot be produced and stored before consumption. They exist only at the time of their production.<br />Implications:<br />Customers may be turned away or have to wait. We dislike waiting<br />
  10. 10. Characteristics of Services Vs. Goods<br />Rental/Access – Services provide temporary possession or access instead of ownership<br />