2. Examples of Service Industries
• Health Care
– 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
• Travel
– airlines, travel agencies, theme park
• Others:
– hair styling, pest control, plumbing, lawn maintenance,
counseling services, health club
3. Importance of services
• Services-based economics
• Services as a business imperative in
manufacturing and IT
• Deregulation industries and professional
needs
4.
5. SERVICES AND TECHNOLOGY
• Potential for new service offerings
• New ways to deliver services
• Enabling both customer and employees
• Extending global reach of services
• The internet is a service
6. definition
• ‘’ all economic activities whose output is not
physical product , is generally consumed at
the time it is produced, and provides added
value in forms that are essentially intangible’’
9. Differences Between
Goods and Services
Intangibility
Perishability
Simultaneous
Production
and
Consumption
Heterogeneity
10.
11. 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
12. Expanded Mix for Services --
The 7 Ps
• Product
• Price
• Place
• Promotion
• People
• Process
• Physical Evidence
16. Gaps Model of Service Quality
• Customer Gap:
– difference between expectations and perceptions
• Provider Gap 1:
– not knowing what customers expect
• Provider Gap 2:
– not having the right service designs and standards
• Provider Gap 3:
– not delivering to service standards
• Provider Gap 4:
– not matching performance to promises
17. GAP-1
Customer expectations
.
Company perception of customer
expectations
• Inadequate marketing research orientation
• Lack of upward communication
• Insufficient relationship focus
• Inadequate service recovery
18. GAP-2
Customers-driven service designs and
standards
Management perception of customer
expectations
Poor service design
Absence of customer-driven standards
Inappropriate physical evidence and services cape
19. GAP-3
Customer-driven services design and
standards
Service delivery
• Deficiencies in human resource policies
• Customer who do not fulfill roles
• Problems with services intermediaries
• Failure to match supply and demand
20. GAP-4
Service delivery
External communications to customers
• Lack of integrated service marketing communication
• Ineffective management of customer expectations
• Over promising
• Inadequate horizontal communication
21.
22.
23. Myths about service industries
• The first myth is that service produces service at
the expense of the other sectors.
NO !! E.g.:- airlines, fast food outlets, educational
institution.
• The second myth is that production is primarily
labor intensive
NO !! FACT is capital intensive
• The third myth about the service sector is that
service business are ‘cottage industries’ and
service jobs are low paying.
24. • The other myth about the service is that
services are only offered by the government
sector.
privatization
