The service sector accounts for over half of the GDP and is one of the fastest growing sectors, dominated by jobs, talent, and incomes. Services are intangible acts or performances that are generally produced and consumed simultaneously by customers who may participate in the process. There are various frameworks for classifying services based on factors such as the degree of customer contact or labor intensity and customization.
Meaning & Definition of Marketing of Services
Characteristics & Classification of Services
Service Marketing Mix
Paradigm Mix in Service Marketing
Difference Between Product Marketing & Service Marketing
Strategies of Service Marketing
(As Per Syllabus of AKTU in MBA)
Included
SLEPT FACTORS
Social and legal factors
Economic and competitive factors
Political factors
E-government
Technological innovation and technology assessment
E-commerce and globalization
SHORT TERMS RELATED TO ECOMMERCE
REFERENCES: E-Business and E-Commerce Management Strategy, Implementation and Practice by Dave Chaffey
Meaning & Definition of Marketing of Services
Characteristics & Classification of Services
Service Marketing Mix
Paradigm Mix in Service Marketing
Difference Between Product Marketing & Service Marketing
Strategies of Service Marketing
(As Per Syllabus of AKTU in MBA)
Included
SLEPT FACTORS
Social and legal factors
Economic and competitive factors
Political factors
E-government
Technological innovation and technology assessment
E-commerce and globalization
SHORT TERMS RELATED TO ECOMMERCE
REFERENCES: E-Business and E-Commerce Management Strategy, Implementation and Practice by Dave Chaffey
This presentation by Jenny M. Lewis was made at the workshop on Competition in Publicly Funded Markets (28 February 2019). Find out more at http://www.oecd.org/daf/competition/workshop-on-competition-in-publicly-funded-markets.htm
This presentation by the OECD Competition Division was made at the workshop on Competition in Publicly Funded Markets (28 February 2019). Find out more at http://www.oecd.org/daf/competition/workshop-on-competition-in-publicly-funded-markets.htm
This project is related to “Organisational buying behavior for Tata Teleservises Maharashtra Limited”. Nowadays consumer is a king of market. Organisational buying behavior is the most important concept for any company by which many company formulate there marketing strategies. Thus project conducted in Pune city in Maharashtra state. The Pune city is one of the main IT Hub in India.
The Indian Internet Market Dynamics and Forecast (2008-2014) report analyses the latest developments in the fast growing Internet market of India by the main players and provides a market forecast until 2014. ROA Holdings and Optimum forecast that India's internet market is to reach as high as 868.47 million users by 2014, with an estimated compound annual growth rate (CAGR) of 20.45%. During 2008, more than 112 million subscribers were added, increasing the penetration from 20.31% to 29.76% in 2008.
In today’s market each & every firm is selling identical products, which are differentiated by
brands. The sole aim of every company is to promote their brands using different strategies in
order to earn revenue and to occupy a major market share. According to the “consumer reports” a person encounters approximately 247 images per day, but probably do not noticeeven half of them, neither gets exposed to it. This means that mere proximity or visibility ofthe message is not sufficient for the customer to notice it. Since it is not possible for thehuman brain to process so many messages all at once, the viewer often finds it difficult todecode the message communicated by the company, and thus the purpose of the wholecommunication goes in vain and gets wasted.
As the foreign companies, new technologies & consumers prospects towards innovative products, Every Electronics products are coming with internet facilities and trends towards internet usage is becoming high and high, that’s why the organisations also taking help of internet to decreasing the workload. They are extremely higher user of internet services than an individual consumer. Therefore there is a need to Internet service Providers (ISP’s) to grab this market.
THE IMPACT OF PSYCHOLOGICAL BARRIERS IN INFLUENCING CUSTOMERS’ DECISIONS IN T...ijmpict
Increased competition in broadband telecommunication market led to a surge in campaigns and packages
for customers. Whereas traditional economic theory assumed that abundance of alternatives is to be
welcomed by customers, recent theories however, have emphasized that multiple choices may have a
negative role in adoption or switching behavior. The unorthodox conclusions of negative impact of wide
assortment of choices were studied through the lens of behavioral economics. Most notably, “anticipated
regret” was identified to be major cause of choice deferral of purchase. This paper investigates the role of
selection difficulty and anticipated regret on the intention of broadband subscribers to upgrade to higher
connection speed. The result shows that there is a significant positive relationship between anticipated
regret and decision avoidance. Results also indicate that selection difficulty has positive relationship with
switching cost thus indirectly reducing the perceived net benefit of upgraded internet connection. This
study, therefore, confirmed the significant impact of psychological barriers together with economic factors
in influencing customers’ decisions in the telecommunication sector. This paper thus recommends
managers of telecom firms and regulators to seek reducing anticipated regret and selection difficulty when
promoting upgraded services even when such services are promising higher economic benefit.
International Journal of Business and Management Invention (IJBMI) is an international journal intended for professionals and researchers in all fields of Business and Management. IJBMI publishes research articles and reviews within the whole field Business and Management, new teaching methods, assessment, validation and the impact of new technologies and it will continue to provide information on the latest trends and developments in this ever-expanding subject. The publications of papers are selected through double peer reviewed to ensure originality, relevance, and readability. The articles published in our journal can be accessed online.
A comparative study of service quality evaluation of selected life insurance 172paperpublications3
Abstract: Due to implementation of government policies on globalization and liberalization, the customer have become more critical about the service quality of the product. In the present era, consumers have become more aware about the alternatives available in the market related to the services and service providers. Due to increase in customer awareness, customer expectations are rising and the providers should aware about the expectations of the customer. This study compares customers’ perceptions of service quality of both public and private sector insurance service providers in Rohilkhand Region. The service quality of both public and private sector insurance has been measured through SERVQUAL scale.
Data was collected from 350 respondents (125 of LIC and 75 of each selected private player) of Rohilkhand Region of both public and private sector insurance providers. In this study five parameters of SERVQUAL such as tangibility, reliability, responsiveness, assurance and empathy have been identified that describe criteria used by customers to assess service quality. This study is confined to four major life insurance companies in India.
This presentation by Mats A Bergman was made at the workshop on Competition in Publicly Funded Markets (28 February 2019). Find out more at http://www.oecd.org/daf/competition/workshop-on-competition-in-publicly-funded-markets.htm
This presentation by Kurt R. Brekke was made at the workshop on Competition in Publicly Funded Markets (28 February 2019). Find out more at http://www.oecd.org/daf/competition/workshop-on-competition-in-publicly-funded-markets.htm
Stepping Up to the Challenges of Digital MarketingCognizant
"The advent of digital has dramatically impacted how CMOs run their marketing operations. By identifying and employing the processes, business models and technologies required in today's digitally intensive business environment, companies can strengthen their brand, enrich their relationships with customers, and manage an increasingly complex mix of partners, processes, and technologies.
This presentation by Jenny M. Lewis was made at the workshop on Competition in Publicly Funded Markets (28 February 2019). Find out more at http://www.oecd.org/daf/competition/workshop-on-competition-in-publicly-funded-markets.htm
This presentation by the OECD Competition Division was made at the workshop on Competition in Publicly Funded Markets (28 February 2019). Find out more at http://www.oecd.org/daf/competition/workshop-on-competition-in-publicly-funded-markets.htm
This project is related to “Organisational buying behavior for Tata Teleservises Maharashtra Limited”. Nowadays consumer is a king of market. Organisational buying behavior is the most important concept for any company by which many company formulate there marketing strategies. Thus project conducted in Pune city in Maharashtra state. The Pune city is one of the main IT Hub in India.
The Indian Internet Market Dynamics and Forecast (2008-2014) report analyses the latest developments in the fast growing Internet market of India by the main players and provides a market forecast until 2014. ROA Holdings and Optimum forecast that India's internet market is to reach as high as 868.47 million users by 2014, with an estimated compound annual growth rate (CAGR) of 20.45%. During 2008, more than 112 million subscribers were added, increasing the penetration from 20.31% to 29.76% in 2008.
In today’s market each & every firm is selling identical products, which are differentiated by
brands. The sole aim of every company is to promote their brands using different strategies in
order to earn revenue and to occupy a major market share. According to the “consumer reports” a person encounters approximately 247 images per day, but probably do not noticeeven half of them, neither gets exposed to it. This means that mere proximity or visibility ofthe message is not sufficient for the customer to notice it. Since it is not possible for thehuman brain to process so many messages all at once, the viewer often finds it difficult todecode the message communicated by the company, and thus the purpose of the wholecommunication goes in vain and gets wasted.
As the foreign companies, new technologies & consumers prospects towards innovative products, Every Electronics products are coming with internet facilities and trends towards internet usage is becoming high and high, that’s why the organisations also taking help of internet to decreasing the workload. They are extremely higher user of internet services than an individual consumer. Therefore there is a need to Internet service Providers (ISP’s) to grab this market.
THE IMPACT OF PSYCHOLOGICAL BARRIERS IN INFLUENCING CUSTOMERS’ DECISIONS IN T...ijmpict
Increased competition in broadband telecommunication market led to a surge in campaigns and packages
for customers. Whereas traditional economic theory assumed that abundance of alternatives is to be
welcomed by customers, recent theories however, have emphasized that multiple choices may have a
negative role in adoption or switching behavior. The unorthodox conclusions of negative impact of wide
assortment of choices were studied through the lens of behavioral economics. Most notably, “anticipated
regret” was identified to be major cause of choice deferral of purchase. This paper investigates the role of
selection difficulty and anticipated regret on the intention of broadband subscribers to upgrade to higher
connection speed. The result shows that there is a significant positive relationship between anticipated
regret and decision avoidance. Results also indicate that selection difficulty has positive relationship with
switching cost thus indirectly reducing the perceived net benefit of upgraded internet connection. This
study, therefore, confirmed the significant impact of psychological barriers together with economic factors
in influencing customers’ decisions in the telecommunication sector. This paper thus recommends
managers of telecom firms and regulators to seek reducing anticipated regret and selection difficulty when
promoting upgraded services even when such services are promising higher economic benefit.
International Journal of Business and Management Invention (IJBMI) is an international journal intended for professionals and researchers in all fields of Business and Management. IJBMI publishes research articles and reviews within the whole field Business and Management, new teaching methods, assessment, validation and the impact of new technologies and it will continue to provide information on the latest trends and developments in this ever-expanding subject. The publications of papers are selected through double peer reviewed to ensure originality, relevance, and readability. The articles published in our journal can be accessed online.
A comparative study of service quality evaluation of selected life insurance 172paperpublications3
Abstract: Due to implementation of government policies on globalization and liberalization, the customer have become more critical about the service quality of the product. In the present era, consumers have become more aware about the alternatives available in the market related to the services and service providers. Due to increase in customer awareness, customer expectations are rising and the providers should aware about the expectations of the customer. This study compares customers’ perceptions of service quality of both public and private sector insurance service providers in Rohilkhand Region. The service quality of both public and private sector insurance has been measured through SERVQUAL scale.
Data was collected from 350 respondents (125 of LIC and 75 of each selected private player) of Rohilkhand Region of both public and private sector insurance providers. In this study five parameters of SERVQUAL such as tangibility, reliability, responsiveness, assurance and empathy have been identified that describe criteria used by customers to assess service quality. This study is confined to four major life insurance companies in India.
This presentation by Mats A Bergman was made at the workshop on Competition in Publicly Funded Markets (28 February 2019). Find out more at http://www.oecd.org/daf/competition/workshop-on-competition-in-publicly-funded-markets.htm
This presentation by Kurt R. Brekke was made at the workshop on Competition in Publicly Funded Markets (28 February 2019). Find out more at http://www.oecd.org/daf/competition/workshop-on-competition-in-publicly-funded-markets.htm
Stepping Up to the Challenges of Digital MarketingCognizant
"The advent of digital has dramatically impacted how CMOs run their marketing operations. By identifying and employing the processes, business models and technologies required in today's digitally intensive business environment, companies can strengthen their brand, enrich their relationships with customers, and manage an increasingly complex mix of partners, processes, and technologies.
Insurance new business process diagramabhinayverma
This slide gives a high level overview of the New Business Acquisition process for Insurance companies. Exact process may vary based on firm, line of business etc. but at a high level, this process overview should suffice.
Service Marketing_MSB.pptx- Dr.M.S.Balaji, Head & Associate Professor,Researc...BBAsourashtracollege
This PowerPoint helps to understand the importance of Services Marketing and Scope for employment in
Industry, the course is offered to teach Services Marketing Mix.
Is AI-Generated Content the Future of Content Creation?Cut-the-SaaS
Discover the transformative power of AI in content creation with our presentation, "Is AI-Generated Content the Future of Content Creation?" by Puran Parsani, CEO & Editor of Cut-The-SaaS. Learn how AI-generated content is revolutionizing marketing, publishing, education, healthcare, and finance by offering unprecedented efficiency, creativity, and scalability.
Understanding
AI-Generated Content:
AI-generated content includes text, images, videos, and audio produced by AI without direct human involvement. This technology leverages large datasets to create contextually relevant and coherent material, streamlining content production.
Key Benefits:
Content Creation: Rapidly generate high-quality content for blogs, articles, and social media.
Brainstorming: AI simulates conversations to inspire creative ideas.
Research Assistance: Efficiently summarize and research information.
Market Insights:
The content marketing industry is projected to grow to $17.6 billion by 2032, with AI-generated content expected to dominate over 55% of the market.
Case Study: CNET’s AI Content Controversy:
CNET’s use of AI for news articles led to public scrutiny due to factual inaccuracies, highlighting the need for transparency and human oversight.
Benefits Across Industries:
Marketing: Personalize content at scale and optimize engagement with predictive analytics.
Publishing: Automate content creation for faster publication cycles.
Education: Efficiently generate educational materials.
Healthcare: Create accurate content for patients and professionals.
Finance: Produce timely financial content for decision-making.
Challenges and Ethical Considerations:
Transparency: Disclose AI use to maintain trust.
Bias: Address potential AI biases with diverse datasets.
SEO: Ensure AI content meets SEO standards.
Quality: Maintain high standards to prevent misinformation.
Conclusion:
AI-generated content offers significant benefits in efficiency, personalization, and scalability. However, ethical considerations and quality assurance are crucial for responsible use. Explore the future of content creation with us and see how AI is transforming various industries.
Connect with Us:
Follow Cut-The-SaaS on LinkedIn, Instagram, YouTube, Twitter, and Medium. Visit cut-the-saas.com for more insights and resources.
SMM Cheap - No. 1 SMM panel in the worldsmmpanel567
Boost your social media marketing with our SMM Panel services offering SMM Cheap services! Get cost-effective services for your business and increase followers, likes, and engagement across all social media platforms. Get affordable services perfect for businesses and influencers looking to increase their social proof. See how cheap SMM strategies can help improve your social media presence and be a pro at the social media game.
The What, Why & How of 3D and AR in Digital CommercePushON Ltd
Vladimir Mulhem has over 20 years of experience in commercialising cutting edge creative technology across construction, marketing and retail.
Previously the founder and Tech and Innovation Director of Creative Content Works working with the likes of Next, John Lewis and JD Sport, he now helps retailers, brands and agencies solve challenges of applying the emerging technologies 3D, AR, VR and Gen AI to real-world problems.
In this webinar, Vladimir will be covering the following topics:
Applications of 3D and AR in Digital Commerce,
Benefits of 3D and AR,
Tools to create, manage and publish 3D and AR in Digital Commerce.
In this presentation, Danny Leibrandt explains the impact of AI on SEO and what Google has been doing about it. Learn how to take your SEO game to the next level and win over Google with his new strategy anyone can use. Get actionable steps to rank your name, your business, and your clients on Google - the right way.
Key Takeaways:
1. Real content is king
2. Find ways to show EEAT
3. Repurpose across all platforms
Mastering Local SEO for Service Businesses in the AI Era is tailored specifically for local service providers like plumbers, dentists, and others seeking to dominate their local search landscape. This session delves into leveraging AI advancements to enhance your online visibility and search rankings through the Content Factory model, designed for creating high-impact, SEO-driven content. Discover the Dollar-a-Day advertising strategy, a cost-effective approach to boost your local SEO efforts and attract more customers with minimal investment. Gain practical insights on optimizing your online presence to meet the specific needs of local service seekers, ensuring your business not only appears but stands out in local searches. This concise, action-oriented workshop is your roadmap to navigating the complexities of digital marketing in the AI age, driving more leads, conversions, and ultimately, success for your local service business.
Key Takeaways:
Embrace AI for Local SEO: Learn to harness the power of AI technologies to optimize your website and content for local search. Understand the pivotal role AI plays in analyzing search trends and consumer behavior, enabling you to tailor your SEO strategies to meet the specific demands of your target local audience. Leverage the Content Factory Model: Discover the step-by-step process of creating SEO-optimized content at scale. This approach ensures a steady stream of high-quality content that engages local customers and boosts your search rankings. Get an action guide on implementing this model, complete with templates and scheduling strategies to maintain a consistent online presence. Maximize ROI with Dollar-a-Day Advertising: Dive into the cost-effective Dollar-a-Day advertising strategy that amplifies your visibility in local searches without breaking the bank. Learn how to strategically allocate your budget across platforms to target potential local customers effectively. The session includes an action guide on setting up, monitoring, and optimizing your ad campaigns to ensure maximum impact with minimal investment.
Most small businesses struggle to see marketing results. In this session, we will eliminate any confusion about what to do next, solving your marketing problems so your business can thrive. You’ll learn how to create a foundational marketing OS (operating system) based on neuroscience and backed by real-world results. You’ll be taught how to develop deep customer connections, and how to have your CRM dynamically segment and sell at any stage in the customer’s journey. By the end of the session, you’ll remove confusion and chaos and replace it with clarity and confidence for long-term marketing success.
Key Takeaways:
• Uncover the power of a foundational marketing system that dynamically communicates with prospects and customers on autopilot.
• Harness neuroscience and Tribal Alignment to transform your communication strategies, turning potential clients into fans and those fans into loyal customers.
• Discover the art of automated segmentation, pinpointing your most lucrative customers and identifying the optimal moments for successful conversions.
• Streamline your business with a content production plan that eliminates guesswork, wasted time, and money.
10 Video Ideas Any Business Can Make RIGHT NOW!
You'll never draw a blank again on what kind of video to make for your business. Go beyond the basic categories and truly reimagine a brand new advanced way to brainstorm video content creation. During this masterclass you'll be challenged to think creatively and outside of the box and view your videos through lenses you may have never thought of previously. It's guaranteed that you'll leave with more than 10 video ideas, but I like to under-promise and over-deliver. Don't miss this session.
Key Takeaways:
How to use the Video Matrix
How to use additional "Lenses"
Where to source original video ideas
5 big bets to drive growth in 2024 without one additional marketing dollar AND how to adapt to the biggest shifting eCommerce trend- AI.
1) Romance Your Customers - Retention
2) ‘Alternative’ Lead Gen - Advocacy
3) The Beautiful Basics - Conversion Rate Optimization
4) Land that Bottom Line - Profitability
5) Roll the Dice - New Business Models
Digital Commerce Lecture for Advanced Digital & Social Media Strategy at UCLA...Valters Lauzums
E-commerce in 2024 is characterized by a dynamic blend of opportunities and significant challenges. Supply chain disruptions and inventory shortages are critical issues, leading to increased shipping delays and rising costs, which impact timely delivery and squeeze profit margins. Efficient logistics management is essential, yet it is often hampered by these external factors. Payment processing, while needing to ensure security and user convenience, grapples with preventing fraud and integrating diverse payment methods, adding another layer of complexity. Furthermore, fulfillment operations require a streamlined approach to handle volume spikes and maintain accuracy in order picking, packing, and shipping, all while meeting customers' heightened expectations for faster delivery times.
Amid these operational challenges, customer data has emerged as an important strategy. By focusing on personalization and enhancing customer experience from historical behavior, businesses can deliver improved website and brand experienced, better product recommendations, optimal promotions, and content to meet individual preferences. Better data analytics can also help in effectively creating marketing campaigns, improving customer retention, and driving product development and inventory management.
Innovative formats such as social commerce and live shopping are beginning to impact the digital commerce landscape, offering new ways to engage with customers and drive sales, and may provide opportunity for brands that have been priced out or seen a downturn with post-pandemic shopping behavior. Social commerce integrates shopping experiences directly into social media platforms, tapping into the massive user bases of these networks to increase reach and engagement. Live shopping, on the other hand, combines entertainment and real-time interaction, providing a dynamic platform for showcasing products and encouraging immediate purchases. These innovations not only enhance customer engagement but also provide valuable data for businesses to refine their strategies and deliver superior shopping experiences.
The e-commerce sector is evolving rapidly, and businesses that effectively manage operational challenges and implement innovative strategies are best positioned for long-term success.
Mastering Multi-Touchpoint Content Strategy: Navigate Fragmented User JourneysSearch Engine Journal
Digital platforms are constantly multiplying, and with that, user engagement is becoming more intricate and fragmented.
So how do you effectively navigate distributing and tailoring your content across these various touchpoints?
Watch this webinar as we dive into the evolving landscape of content strategy tailored for today's fragmented user journeys. Understanding how to deliver your content to your users is more crucial than ever, and we’ll provide actionable tips for navigating these intricate challenges.
You’ll learn:
- How today’s users engage with content across various channels and devices.
- The latest methodologies for identifying and addressing content gaps to keep your content strategy proactive and relevant.
- What digital shelf space is and how your content strategy needs to pivot.
With Wayne Cichanski, we’ll explore innovative strategies to map out and meet the diverse needs of your audience, ensuring every piece of content resonates and connects, regardless of where or how it is consumed.
Top 3 Ways to Align Sales and Marketing Teams for Rapid GrowthDemandbase
In this session, Demandbase’s Stephanie Quinn, Sr. Director of Integrated and Digital Marketing, Devin Rosenberg, Director of Sales, and Kevin Rooney, Senior Director of Sales Development will share how sales and marketing shapes their day-to-day and what key areas are needed for true alignment.
It's another new era of digital and marketers are faced with making big bets on their digital strategy. If you are looking at modernizing your tech stack to support your digital evolution, there are a few can't miss (often overlooked) areas that should be part of every conversation. We'll cover setting your vision, avoiding siloes, adding a democratized approach to data strategy, localization, creating critical governance requirements and more. Attendees will walk away with actions they can take into initiatives they are running today and consider for the future.
When most people in the industry talk about online or digital reputation management, what they're really saying is Google search and PPC. And it's usually reactive, left dealing with the aftermath of negative information published somewhere online. That's outdated. It leaves executives, organizations and other high-profile individuals at a high risk of a digital reputation attack that spans channels and tactics. But the tools needed to safeguard against an attack are more cybersecurity-oriented than most marketing and communications professionals can manage. Business leaders Leaders grasp the importance; 83% of executives place reputation in their top five areas of risk, yet only 23% are confident in their ability to address it. To succeed in 2024 and beyond, you need to turn online reputation on its axis and think like an attacker.
Key Takeaways:
- New framework for examining and safeguarding an online reputation
- Tools and techniques to keep you a step ahead
- Practical examples that demonstrate when to act, how to act and how to recover
Videos are more engaging, more memorable, and more popular than any other type of content out there. That’s why it’s estimated that 82% of consumer traffic will come from videos by 2025.
And with videos evolving from landscape to portrait and experts promoting shorter clips, one thing remains constant – our brains LOVE videos.
So is there science behind what makes people absolutely irresistible on camera?
The answer: definitely yes.
In this jam-packed session with Stephanie Garcia, you’ll get your hands on a steal-worthy guide that uncovers the art and science to being irresistible on camera. From body language to words that convert, she’ll show you how to captivate on command so that viewers are excited and ready to take action.
For too many years marketing and sales have operated in silos...while in some forward thinking companies, the two organizations work together to drive new opportunity development and revenue. This session will explore the lessons learned in that beautiful dance that can occur when marketing and sales work together...to drive new opportunity development, account expansion and customer satisfaction.
No, this is not a conversation about MQLs and SQLs. Instead we will focus on a framework that allows the two organizations to drive company success together.
2. The service sector
The services sector has been growing at a
rate of 8% per annum in recent years
More than half of our GDP is accounted for
from the services sector
This sector dominates with the best jobs,
best talent and best incomes
3. “There are no such thing as
service industries.There are only
industries whose service
components are greater or less
than those of other industries.
Everybody is in service.”
-Theodore Levitt-
4. What is services?
It is the part of the product or the full product for which the
customer is willing to see value and pay for it.
Services are deeds, processes and performance.
Intangible, but may have a tangible component.
Generally produced and consumed at the same time.
Service is any act or performance that one party can offer to
another that is essentially intangible and does not result in any
ownership of anything. Its production may or may not be tied to
physical products..Philip Kotler
5. Difference between physical
goods and services
Physical 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
7. Implications of Intangibility
Services cannot be inventoried
Services cannot be patented
Services cannot be readily displayed
or communicated
Pricing is difficult
8. Implications of Heterogeneity
Service delivery and customer satisfaction
depend on employee actions
Service quality depends on many
uncontrollable factors
There is no sure knowledge that the service
delivered matches what was planned and
promoted
9. Implications of Simultaneous Production
and Consumption
Customers participate in and affect
the transaction
Customers affect each other
Employees affect the service outcome
Decentralization may be essential
Mass production is difficult
10. Implications of Perishability
It is difficult to synchronize supply and
demand with services
Services cannot be returned or resold
11. Reasons behind the growth of the
Service Industry
Increasing affluence
More leisure time
Higher percentage of working women
Complex products
Complexity of life
13. Table 1-3
Expanded Marketing Mix for
Services
PRODUCT PLACE PROMOTION PRICE
Physical good
features
Channel type Promotion
blend
Flexibility
Quality level Exposure Salespeople Price level
Accessories Intermediaries Advertising Terms
Packaging Outlet location Sales
promotion
Differentiation
Warranties Transportation Publicity Allowances
Product lines Storage
Branding
14. PEOPLE PHYSICAL
EVIDENCE
PROCESS
Employees Facility design Flow of activities
Customers Equipment Number of steps
Communicating
culture and values
Signage Level of customer
involvement
Employee research Employee dress
Other tangibles
Table 1-3 (Continued)
Expanded Marketing Mix for
Services
15. The three additional ‘P’s of
Service Marketing
People
Physical evidence
Process
16. Determinants of service quality
Reliability – delivering on promises
Responsiveness – willing to help
Assurance – inspiring trust and confidence
Empathy – individualising customers
Tangibles- physical representation
26. 26
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
28. 28
Classification of Services
Based on Degree Of Cust. Involvement
( Lovelock)
1. People Processing
2. Possession Processing
3. Mental Stimulus Processing
4. Information Processing
29. People Processing
If the customers want the benefits that a people-
processing service has to offer, they must be prepared
to spend time operating actively with the service
provider.
The output from these services, whose period of
delivery can vary from minutes to months, is a customer
who has reached her destination, or satisfied his
hunger, or is now sporting clean and stylishly-cut hair,
or has had a couple of night’s sleep away from home, or
is now in better physical health.
It is important for managers to think about process and
output in terms of what happens to the customer
because that helps them to identify what benefits are
being created.
30. Possession Processing
Possession processing services include
transport and storage of goods, wholesale and
retail distribution, and installation, removal and
disposal of equipment;
In short, the entire value-adding chain of
activities during the lifetime of the object in
question.
Customers are less physically involved with this
type of service than with people-processing
services.
31. Mental Stimulus Processing
Services that interact with people’s minds include
education, news and information, professional advice,
psychotherapy, entertainment and certain religious
practices.
Service such as entertainment and education are often
created in one place and transmitted by television or
radio to individual customers in distant locations.
Since the core content of all services in this category is
information-based (whether it is much, speech or visual
imagers), they can easily be converted into digital bits,
recorded for posterity and transformed into a
manufactured product, such as a compact disc,
videotape, or audio-cassette-much like any other
physical good-or delivered via the Internet.
32. Information Processing
Information processing has been revolutionized by the use of
computers. However, not all information is processed by machines.
Among the services that are highly dependent on effective
collection and processing of information are financial and
professional services such as accounting, law, market research,
management consulting and medical diagnosis.
The extent of customer involvement in both information and mental
stimulus processing services is often determined more by tradition
and a desire to meet the supplier face-to-face, than by the needs of
the operational process.
As technology improves and people continue to become more
comfortable with videophones or the Internet, we can expect to see
a continuing shift away from face-to-face transactions.
33. 33
Four Categories of Services
Employing Different Underlying Processes
People Processing Possession Processing
Mental Stimulus
Processing
Information Processing
(directed at intangible assets)
e.g., airlines, hospitals,
haircutting, restaurants hotels,
fitness centers
e.g., freight, repair, cleaning,
landscaping, retailing,
recycling
e.g., broadcasting, consulting,
education, psychotherapy
e.g., accounting, banking,
insurance, legal, research
TANGIBLE
ACTS
INTANGIBLE
ACTS
DIRECTED AT PEOPLE DIRECTED AT POSSESSIONS
What is the
Nature of the
Service Act?
Who or What is the Direct Recipient of the Service?
35. Why Study Service Operations?
• Service firms are a large percentage of the
economies of industrialized nations and it’s
growing
– 80% of the US economy (employment and GDP)
• There is little focus on services in the
academic world. Gain a competitive edge.
• Not all management tools that are
appropriate for manufacturing are
transferable into a service environment
36. The Importance of Service Sector
Historically service is defined by what it is
not:
Services are not
Goods Producing Manufacturing &
Construction
Extraction Agriculture, forestry, fishing &
mining
Services Retailing, Wholesaling,
Transportation, Financial services, etc.
Nowadays service is ubiquitous.
38. Definition of Service Firms
Service Enterprises are Organizations that
Facilitate the Production and Distribution
of Goods, Support Other Firms in Meeting
Their Goals, and Add Value to Our
Personal Lives.
- James Fitzsimmons
39. Bell’s Stages of Economic
Development
Preindustrial
Industrial
Postindustrial
Features
Society Game Pre-
dominant
Activity
Use of
Human
Labor
Unit of Social
Life
Standard of
Living
Measure
Structure Technology
Pre-
Industrial
Against
Nature
Agriculture,
Mining
Raw Muscle
Power
Extended
Household
Subsistence Routine,
Traditional,
Authoritative
Simple hand
tools
Industrial Against
fabricated
nature
Goods,
Production
Machine
tending
Individual Quantity of
Goods
Bureaucratic
,
Hierarchical
Machines
Post-
Industrial
Among
Persons
Services Artistic,
Creative,
Intellectual
Community Quality of
life in terms
of health,
education,
recreation
Interdepende
nt, Global
Information
40. 2
Historical US Employment by Economic
Sector
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
1800 1850 1900 1950 2001
Year
PercentofWorkforce
Extraction
Goods Producing
Service Producing
42. Distribution of GDP in the US Economy
Product Services
Physical
Information
6%
10%
31%
53%
37%
63%
84%16%
D
BA
C
43. a. Preindustrial
In U.S , during year 1800
Employment in extraction field
Agriculture is the most prominent. More than 80% workforce in
Agriculture sector
Service occupations mostly were domestic servants and sailors
Family relationships and tradition important but education and
innovation are not
Quality of life dependent on nature
44. b. Industrial
Year 1900 to 1950
Important activity Goods production
Quality of Life Measured by accumulation of goods. “He who dies
with the most toys, wins”
Focus was on maximizing the productivity of labor and machines
Extreme division of labor
Dehumanizing jobs hence labor unions were formed
“Manual workers” outnumbered “white collar workers”
45. c. Postindustrial
Year 1950 onwards
Service producing industries increased from 50% to 80% in US
Health, Education, & recreation predominates and it determines
Quality of Life
A small subset of the service economy called “experiences”
will be a dominant economic force
Information rather than muscle was the focus; workers value
based on judgment, creativity & theoretical reasoning
New paradigms are required to manage service industries.
46. New Experience Economy
Service undergoing transformation from
the traditional concept of a service
transaction to one of an experience.
Eg: Disney World, Starbucks, etc.
Economy Agrarian Industrial Service Experience
Function Extract Make Deliver Stage
Nature Exchangeable Tangible Intangible Memorable
Attribute Natural Standardized Customized Personal
Method of
Supply
Stored in Bulk Inventoried Delivered on
demand
Revealed over
time
Seller Trader Manufacturer Provider Stager
Buyer Market User Client Guest
47. Reasons for transformation from
industrial to post industrial era
Natural development of services such as
transportation & Utilities to support industrial
development
Population growth & mass consumption of goods
increase wholesale & retail trade along with
banking, real estate, & insurance
Higher income means higher demand for durables
& services, proportion spent on food & home
decreases. (Similar to Maslow’s Hierarchy)
48. 3
What is Operations?
The transformation process that turns inputs into
outputs, that is, the act of combining people, raw
materials, technology, etc. into useable services
and products
Who is in the operations function?
The people who actually make a product or
perform a service
Typically operations has the largest number
of employees of any functional area
Importance of studying “operations” in
services
49. Opportunities in Service Sector
Vast & untapped opportunities to improve
service businesses.
Only manufacturing is being considered for
a time being.
Imbalance exists which creates a huge
opportunity
50. Operations in the Service Sector
Many products: Combination of Goods and Services
Services
Repair and Maintenance
Government
Food and Lodging
Transportation
Insurance
Trade
Financial
Real Estate
Education
Legal
Medical
Entertainment and Other professional Occupations
51. Classification frameworks
Classification helps in finding
commonalities
Similarities helps in finding insights
Well known classifications
Customer Contact Model
Service Process Matrix (Proposed by
Schmenner)
52. Customer Contact Model
Services are classified according to the amount of
customer contact
Pure Services Mixed Services Quasi-Mfg. Manufacturing
Medical
Restaurants
Transportation
Branch offices Home offices
Distribution centers
• Guiding Principle:
timeCreationService
TimeContactCustomer
fEfficiencyPotential
__
__
1_
High Contact Low Contact
53. Service Process Matrix
Professional Service
•Doctors
•Lawyers
•Accountants
•Architects
Mass Service
•Retailing
•Wholesaling
•Schools
•Retail Aspects of
Commercial Banking
High
Service Shop
•Hospitals
•Auto Repair
•Other Repair Services
Service Factory
•Airlines
•Trucking
•Hotels
Low
HighLow
Degree
of Labor
Intensity
Degree of Interaction and Customization
54. Low Labor
Intensity
Challenges for managers
Capital decisions
Technological advances
Managing peak/non-peak demand
Scheduling service delivery
High Labor Intensity
Challenges for managers
Hiring, training
Methods development
Employee welfare
Scheduling workforces
Control of far-flung locations
Managing growth
Low Interaction/Customization
Challenges for managers
Marketing
Making service “warm”
Attention to physical surroundings
Managing fairly rigid hierarchy with
need for standard operating procedures
High Interaction/Customization
Challenges for managers
Fighting cost increases
Maintaining quality
Reacting to consumer intervention in process
Managing flat hierarchy with loose subordinate-
superior relationships
Gaining employee loyalty