The document discusses key aspects of services marketing. It defines a service as any act or performance that is intangible and does not result in ownership. Services are classified along a continuum from pure tangible goods to pure services. Services differ from goods in being intangible, inseparable from their delivery, variable in their delivery, and perishable if not provided immediately. The document outlines challenges in services marketing like matching supply and demand and reducing customer failures. It provides best practices for achieving service excellence, improving quality using models of expected service, and enhancing customer support for goods companies.

1. 13
Designing and
Managing Services
1

2. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 13-2
Chapter Questions

How do we define and classify services and
how do they differ from goods?

What are the new services realities?

How can we achieve excellence in services
marketing?

How can we improve service quality?

How can goods marketers improve customer
support services?

3. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 13-3
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.

4. Services are Everywhere
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5. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 13-5
Categories of Service Mix

Pure tangible good

Good with accompanying services

Hybrid

Service with accompany goods

Pure service

6. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 13-6
Service Distinctions

Equipment-based or people-based

Service processes

Client’s presence required or not

Personal needs or business needs

Objectives and ownership

7. Figure 13.1 Continuum of
Evaluation for Different Types of
Products
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8. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 13-8
Distinctive Characteristics
of Services
Intangibility
Inseparability
Variability
Perishability

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Physical Evidence and
Presentation

Place

People

Equipment

Communication material

Symbols

Price

10. Table 13.1 Dimensions of Brand
Experience
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11. Inseparability
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12. Variability
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13. Increasing Quality Control
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14. Perishability
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15. Matching Demand and Supply
Demand side

Differential pricing

Nonpeak demand

Complementary
services

Reservation systems
Supply side

Part-time employees

Peak-time efficiency

Increased consumer
participation

Shared services

Facilities for future
expansion
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16. New Service Realities
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17. Figure 13.3 Root Causes of
Customer Failure
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18. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 13-18
Solutions to Customer Failures

Redesign processes and redefine customer
roles to simplify service encounters

Incorporate the right technology to aid
employees and customers

Create high-performance customers by
enhancing their role clarity, motivation, and
ability

Encourage customer citizenship where
customers help customers

19. Figure 13.4 Types of Marketing in
Service Industries
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20. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 13-20
Best Practices

Strategic Concept

Top-Management Commitment

High Standards

Self-Service Technologies

Monitoring Systems

Satisfying Customer Complaints

Satisfying Employees

21. Figure 13.5 Importance-
Performance Analysis
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22. Table 13.3 Factors Leading to
Customer Switching Behavior

Pricing

Inconvenience

Core Service Failure

Service Encounter Failures

Response to Service Failure

Competition

Ethical Problems

Involuntary Switching
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23. Improving Service Quality

Listening

Reliability

Basic service

Service design

Recovery

Surprising customers

Fair play

Teamwork

Employee research

Servant leadership
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24. Figure 13.6 Service-Quality Model
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25. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 13-25
Determinants of Service Quality

Reliability

Responsiveness

Assurance

Empathy

Tangibles

26. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 13-26
Customer Worries
Failure frequency
Downtime
Out-of-Pocket Costs

27. For Review

How do we define and classify services and
how do they differ from goods?

What are the new services realities?

How can we achieve excellence in services
marketing?

How can we improve service quality?

How can goods marketers improve customer
support services?
Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 13-27