This document discusses the concept of services and service quality. It defines what a service is and highlights some key distinctive characteristics of services, including intangibility, inseparability, variability, and perishability. It contrasts services with goods. The document then discusses three types of marketing for service industries and identifies five key dimensions of service quality - reliability, responsiveness, assurance, empathy, and tangibles. It provides examples of determinants of perceived service quality and outlines a commonly used framework for measuring service quality called SERVQUAL.

1. Service Marketing

2. What is a Service
A service is any act of performance that one
party can offer another that is essentially
intangible and does not result in the
ownership of anything; its production may
or may not be tied to a physical product.

3. Distinctive Characteristics of
Services
Intangibility
Inseparability
Variability
Perishability

4. Difference between goods & services
Goods Services
tangible intangible
homogeneous heterogeneous
Production and distribution are
separated from consumption
Production, distribution and
consumption are simultaneous
processes
A thing An activity or process
Core value processed in factory Core value produced in the buyer-seller
interaction
Customers do not participate in the
production process
Customers participate in production
Can be kept in stock Cannot be kept in stock
Transfer of ownership No transfer of ownership

5. Three Types of Marketing in Service
Industries

6. Determinants of Perceived Service
Quality
Word of
mouth
Personal
needs
Past
experience
Expected
service
Perceived
service
Service Quality
Dimensions
Reliability
Responsiveness
Assurance
Empathy
Tangibles
Service Quality Assessment

7. Determinants of Service Quality
• Tangibles: Appearance of physical facilities, equipment,
personnel, and communication materials.
• Reliability: Ability to perform the promised service
dependably and accurately.
• Responsiveness: Willingness to help customers and
provide prompt service.
• Assurance: Knowledge and courtesy of employees and
their ability to inspire trust and confidence.
• Empathy: Caring, individualized attention the firm provides
its customers.
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8. Service Quality (SERVQUAL) Items
Reliability
1. Providing services as promised
2. Dependability in handling customers' service problems
3. Performing services right the first time
4. Providing services at the promised time
5. Keeping customers informed about when services will be performed
Responsiveness
6. Prompt service to customers
7. Willingness to help customers
8. Readiness to respond to customers' requests
Assurance
9. Employees who instill confidence in customers
10. Making customers feel safe in their transactions
11. Employees who are consistently courteous
12. Employees who have the knowledge to answer customer questions
Empathy
13. Giving customers individual attention
14. Employees who deal with customers in a caring fashion
15. Having the customer's best interest at heart
16.Employees who understand the needs of their customers
Tangibles
17. Modern equipment
18. Visually appealing facilities
19. Employees who have a neat, professional appearance
20. Visually appealing materials associated with the service
21. Convenient business hours
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9. Customer Feedback Form
Please think about the quality of service ________ offers compared to the two different levels of
service defined below:
MINIMUM SERVICE LEVEL - the minimum level of service performance you consider
adequate.
DESIRED SERVICE LEVEL - the level of service performance you desire.
For each of the following statements, please indicate: (a) how ______’s performance compares
with your minimum service level by circling one of the numbers in the first column; and (b) how
______’s performance compares with your desired service level by circling one of the numbers
in the second column.
Compared to My Minimum Compared to My Desired
Service Level ____’s Service Level ____’s
Service Performance is: Service Performance is:
The No The No
When it comes to … Lower Same Higher Opin- Lower Same Higher Opin-
ion ion
1. Prompt service 1 2 3 4 5 6 7 8 9 N 1 2 3 4 5 6 7 8 9 N
to policyholders
2. Employees who are 1 2 3 4 5 6 7 8 9 N 1 2 3 4 5 6 7 8 9 N
consistently courteous
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10. Service Quality Gap ModelCustomer
Perceptions
Customer
Expectations
Service
Delivery
Service
Standards
Management
Perceptions
of Customer
Expectations
Managing the
Evidence
Conformance Service Design
Understanding
the Customer
Customer Satisfaction
GAP 5
Customer /
Marketing Research
GAP 1
Conformance
GAP 3
Communication
GAP 4
Design GAP 2
Service Quality Gap Model