Services Marketing ppts 1.ppt

Services Marketing
8/20/2022 Dr. Rajeev Sirohi, LBSIM 1

Session 1
Foundations for Services Marketing:
Introduction to Services

What are Services?
• Services are deeds, processes, and performances
provided, coproduced, or cocreated by one entity or
person for and/or with another entity or person.
• Usually no transfer of ownership.

Examples of Services
• 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
– airline, travel agency, theme park
• Others
– hair styling, pest control, plumbing, lawn maintenance, counseling services,
health club, interior design

Tangibility Spectrum (Tangible- dominant to
Intangible-dominant)

Four Categories of Services

Contributions of Service Industries to U.S. Gross
Domestic Product

Contributions of Service Industries to
India Gross Domestic Product
Contribution to India’s GDP by Sector (2018-19)
• Agriculture 15.2%
• Manufacturing 29.5%
• Services 55.3%

Why Service Marketing?
• Services dominate India and worldwide economies
• Service as a business imperative in goods-focused
businesses
• Deregulated industries and professional service
needs
• Service marketing is different
• Service leads to profits

Service and Technology
• Technology…
– Is the foundation of many service offerings
– Provides new ways to deliver service
– Enables both customers and employees.
– Extends the global reach of services
• Some outcomes may be negative.

Characteristics of Services
Intangibility
Perishability
Simultaneous
Production
and
Consumption
Heterogeneity

Comparing Goods and Services

Search, Experience, and Credence
Qualities

Traditional Marketing Mix
• Elements an organization controls that can be used to
satisfy or communicate with customers:
– Product
– Price
– Place
– Promotion

Expanded Mix for Services – The 7 Ps
The 4 Ps plus…
People
Physical Evidence
Process

Expanded Marketing Mix for
Services

Session 2
Foundations for Services Marketing:
The Gaps Model of Service Quality

Gaps Model of Service Quality

The Customer Gap

 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
Customer
Expectations
Customer
Perceptions
Key Factors Leading
to the Customer Gap
Customer
Gap

Company
perceptions of
customer
expectations
Customer
expectations
CUSTOMER
COMPANY
Gap 1:
The Listening Gap
Provider Gap 1
Perceived
Service

Key Factors Leading to Provider Gap 1

CUSTOMER
COMPANY
Gap 2: The Service
Design and Standards
Gap
Customer-driven
service designs and
standards
Company
perceptions of
customer
expectations
Provider Gap 2

CUSTOMER
COMPANY Service delivery
Gap 3: The
Service
Performance Gap
Customer-driven
service designs and
standards
Provider Gap 3

CUSTOMER
COMPANY
External
communications to
customers
Gap 4: The Communication Gap
Provider Gap 4
Service delivery

Session 3
Focus on the Customer: Customer
Expectations of Service

Dual Customer Expectation Levels

The Zone of Tolerance

The Zone of Tolerance
Adequate Service
Desired Service
Zone of
Tolerance
← Delights
← Desirables
← Musts

Zones of Tolerance
• The range of expectations between desired
and adequate…
– can be wide or narrow
– can change over time
– can vary among individuals (busy person)
– may vary with the type of product/service
(emergency service vs routine service)
– can be influenced by company-controlled factors
such as price, physical evidence

Zones of Tolerance for Different
Service Dimensions

Factors That Influence Desired Service

Factors That Influence Adequate Service

Factors That Influence Desired and Predicted
Service

Explicit Service Promises from
Paytrust

Implicit Service Promises

Frequently Asked Questions About
Customer Expectations
• What does a service marketer do if customer
expectations are “unrealistic”?
• Should a company try to delight the customer?
• How does a company exceed customers’ service
expectations?
• Do customers’ service expectations continually
escalate?
• How does a service company stay ahead of
competition in meeting customer expectations?

Should a Company Try to Delight
the Customer?
• Delight: a
profoundly positive
emotional state
that results from
having one’s
expectations
exceeded to a
surprising degree.

• Bottom line: exceeding expectations on the
basics is nearly impossible
– Honor promises
– Do what you are supposed to do
– Develop customer relationships
– Provide personalized attention (Ritz-Carlton Hotels)
– Under promise?
– Be unique
How Does a Company Exceed Customer Service
Expectations?

Do Service Expectations Continually Escalate?
• Adequate service expectations are more subject to
escalation than desired service expectations; they
rise as quickly as service delivery or promises rise.
• Adequate service expectations need to be monitored
continually – the more turbulent the industry, the
more frequent the monitoring needed.
• Desired service expectations are more stable; they
tend to start high and stay high

Staying Ahead of the Competition in Meeting
Customer Expectations
• Adequate expectations will rise when competitors promise
and deliver a higher level of service.
• Challenge is to consistently exceed the adequate service level
and also reach the desired service level.
– Must build customer loyalty
• Consider how promises are presented to customers relative to
the competition.
– Be honest when refuting competitors’ “inflated” offerings; provide
facts.
– Follow up the sale with a “reality check” about the level of service
received relative to industry average

Session 4
Focus on the Customer: Customer
Perception of Service

Customer Perceptions of Quality and Customer
Satisfaction

Factors Influencing Customer
Satisfaction
• Product and service features
• Perceptions of product and service quality
• Price
• Customer emotions
• Attributions for service success or failure
• Perceptions of equity or fairness
• Other customers, family members, and coworkers

Outcomes of Customer Satisfaction
• Increased customer loyalty
• Positive word-of-mouth communications
• Increased revenues
• Increased return to shareholders

Customer Satisfaction and Loyalty

Service Quality
• Service quality assessments are formed on
judgments of:
– outcome quality
– interaction quality
– physical environment quality
8 7 9

The Five Dimensions of Service Quality
SERVQUAL SCALE
Ability to perform the promised
service dependably and accurately.
Knowledge and courtesy of
employees and their ability to
convey trust and confidence.
Physical facilities, equipment, and
appearance of personnel.
Caring, individualized attention the
firm provides its customers.
Willingness to help customers and
provide prompt service.
Tangibles
Reliability
Responsiveness
Assurance
Empathy

n Providing service as promised
n Dependability in handling customers’
service problems
n Performing services right the first time
n Providing services at the promised time
n Maintaining error-free records
n Keeping customers informed as to
when services will be performed
n Prompt service to customers
n Willingness to help customers
n Readiness to respond to customers’
requests
RELIABILITY
RESPONSIVENESS
n Employees who instill confidence in
customers
n Making customers feel safe in their
transactions
n Employees who are consistently courteous
n Employees who have the knowledge to
answer customer questions
ASSURANCE
n Giving customers individual attention
n Employees who deal with customers in a
caring fashion
n Having the customer’s best interest at heart
n Employees who understand the needs of
their customers
n Convenient business hours
EMPATHY
n Modern equipment
n Visually appealing facilities
n Employees who have a neat,
professional appearance
n Visually appealing materials
associated with the service
TANGIBLES
SERVQUAL Attributes

E-Service Quality
• How do customers evaluate service quality on
the Web?
• E-S-QUAL is the extent to which a website
facilitates efficient and effective shopping,
purchasing, and delivery
– Four core dimensions:
• Efficiency, fulfillment, system availability, privacy
– Three “recovery service” dimensions:
• Responsiveness, compensation, contact

Customer Effort
• Customer effort is another driver of customer
loyalty that is distinct from quality and
satisfaction.
• In customer service contexts, customer loyalty
may be based more on minimizing the effort
customers need to expend to get their
problems solved rather than delighting or
satisfying them.

The Service Encounter
• where promises are kept or broken
• is the “moment of truth”
• occurs any time the customer interacts with the firm
• can potentially be critical in determining customer
satisfaction and loyalty
• is an opportunity to:
– build trust
– reinforce quality
– build brand identity
– increase loyalty

Check-In
Request Wake-Up Call
Checkout
Bellboy Takes to Room
Restaurant Meal
A Service Encounter
Cascade for a Hotel Visit

Types of Service Encounters
• Remote encounters: no direct human contact; automated;
the bases for quality evaluations are tangibles and technical
processes.
• Technology-mediated encounters: communication with a real
person in real time via talk, text, live chats; the bases for
quality evaluations are tone of voice, employee knowledge,
and effectiveness/efficiency.
• Face-to-face encounters: direct personal contact between an
employee and a customer; bases for quality are verbal and
non-verbal cues, symbols.

Session 5
Understanding Customer Requirements:
Listening to Customers through Research

Company
Perceptions of
Customer
Expectations
Expected
Service
CUSTOMER
COMPANY
Provider Gap 1
Gap 1:
The Listening Gap

Using Customer Research to
Understand Customer Expectations
Research Objectives for Services
• To discover customer requirements or expectations for service.
• To monitor and track service performance.
• To assess overall company performance compared with that of
competition.
• To assess gaps between customer expectations and perceptions.
• To identify dissatisfied customers, so that service recovery can be
attempted.
• To gauge effectiveness of changes in service delivery.
• To appraise the service performance of individuals and teams for
evaluation, recognition, and rewards.
• To determine customer expectations for a new service.
• To monitor changing customer expectations in an industry.
• To forecast future expectations of customers.

Using Customer Research to
Understand Customer Expectations
Service Research Program
the portfolio of research studies and types needed to
address research objectives and execute an overall
measurement strategy.

Criteria for an Effective Service
Research Program
• Includes qualitative and quantitative research
• Includes both perceptions and expectations of
customers
• Balances the cost of the research and the value of
the information
• Includes statistical validity when necessary
• Measures priorities or importance of attributes
• Occurs with appropriate frequency
• Includes measures of loyalty, behavioral intentions,
or actual behavior

Elements in an Effective Service Marketing
Research Program (Portfolio of Services Research)
• Customer Complaint Solicitation
• Critical Incident Studies
• Requirements Research
• Relationship and SERVQUAL Surveys
• Trailer Calls or Posttransaction Surveys
• Service Expectations Meetings and Reviews
• Process Checkpoint Evaluations
• Mystery Shopping
• Customer Panels
• Lost Customer Research
• Future Expectations Research

Common means for answering questions
• Ask customers directly
– mail, phone, face-to-face, online
– one-on-one, in groups, formal/informal
• Observing customers
– anthropological tools, qualitative depth
• Get information from employees and front line
service providers
• Database marketing research
– use customer information files
– “capture” behavior through data analysis

 Providing service as promised
 Dependability in handling customers’
service problems
 Performing services right the first time
 Providing services at the promised time
 Maintaining error-free records
 Keeping customers informed as to when
services will be performed
 Prompt service to customers
 Willingness to help customers
 Readiness to respond to customers’
requests
RELIABILITY
RESPONSIVENESS
 Employees who instill confidence in customers
 Making customers feel safe in their transactions
 Employees who are consistently courteous
 Employees who have the knowledge to answer
customer questions
ASSURANCE
 Giving customers individual attention
 Employees who deal with customers in a
caring fashion
 Having the customer’s best interest at heart
 Employees who understand the needs of
their customers
 Convenient business hours
EMPATHY
 Modern equipment
 Visually appealing facilities
 Employees who have a neat,
professional appearance
 Visually appealing materials associated
with the service
TANGIBLES
SERVQUAL Attributes

Analyzing and Interpreting Customer Research
Findings
(Importance/Performance Matrix)

Using Marketing Research Information
• Understanding how to make the best use of research
– to apply what has been learned to the business – is
a key way to close the gap between customer
expectations and management perceptions of
customer expectations.

Upward Communication
• Research for upward communication
– Executive visits to customers (with salespeople)
– Executive or management listening to customers
– Research on intermediate customers (dealers,
distributors, agents, and brokers)
– Research on internal customers (employees who
perform services)
– Executive or management listening approaches to
employees
– Employee suggestions

Upward Communication
• To gain firsthand knowledge about customers
Executive visits to
customers
• To gain firsthand knowledge about customers
Executive listening to
customers
• To gain in-depth information on end customers
Research on
intermediate customers
• To improve internal service quality
Employee internal
satisfaction surveys
• To gain firsthand knowledge about employees
Employee visits or
listening
• To obtain ideas for service improvements
Employee suggestions

Session 6
Building Customer Relationships

Relationship Marketing
• is a philosophy of doing business, a strategic
orientation, that focuses on keeping current
customers and improving relationships with them
• does not necessarily emphasize acquiring new
customers
• is usually cheaper (for the firm)
– keeping a current customer costs less than
attracting a new one
• thus, the focus is less on attraction, and more on
retention and enhancement of customer
relationships

The “Bucket Theory of Marketing”

The Evolution of Customer Relationships
and Goals of Relationship Marketing

Benefits of Relationship Marketing
• Benefits for Customers:
– Receipt of greater value
– Confidence benefits:
• trust
• confidence in provider
• reduced anxiety
– Social benefits:
• familiarity
• social support
• personal relationships
– Special treatment benefits:
• special deals or
• price
• Benefits for Firms:
– Economic benefits:
• increased revenues
• reduced marketing and administrative
costs
• regular revenue stream
– Customer behavior benefits:
• strong word-of-mouth endorsements
• customer voluntary performance
• social benefits to other customers
• mentors to other customers
– Human resource management
benefits:
• easier jobs for employees
• social benefits for employees
• employee retention

Relationship Value of Customers
• The relationship value of a customer considers
customers from the point of view of their lifetime
revenue and/or profitability contributions to a
company.
• It is influenced by:
– Length of average customer “lifetime”
– Additional sales over time
– Referrals by the customer over time
– Costs associated with serving the customer

Relationship Development Model

Relationship Development Strategies
• Core Service Provision:
– service foundations built upon delivery of excellent
service:
• satisfaction, perceived service quality, perceived value
• Switching Barriers:
– customer inertia
– switching costs: monetary & non monetary costs
• set up costs, search costs, learning costs, contractual costs
• Relationship Bonds:
– financial bonds
– social bonds
– customization bonds
– structural bonds

Levels of Relationship Strategies

Debate
• Is the customer always right?

“The Customer Is NOT Always
Right”
• Not all customers are good relationship
customers:
– The wrong segment (whose needs the company can
not meet)
– Not profitable in the long term (not enough
customers in the segment, segment can not afford
to pay the cost of the service)
– Difficult customers

Ending Business Relationships
• Should firms fire their customers?
Relationship endings

Session 7
Service Recovery

Reliability is Critical in Service but…
• In all service contexts, service failure is inevitable.
• Service failure occurs when service performance
that falls below a customer’s expectations in such a
way that leads to customer dissatisfaction.
• Service recovery refers to the actions taken by a firm
in response to service failure to improve the situation
for the customer.

Complaining Customers: The Tip of the Iceberg

Service Recovery Effects
• Resolving customer problems effectively lead to
-Customer satisfaction, loyalty, WOM communication
-improve service as part of continuous improvement effort
Downsides to having no service recovery or ineffective
service recovery strategies
-customer’s less likely to purchase
-criticize the company
-challenging the organization through consumer rights
organizations or legal channels
-reduction in employees morale or loss of employee

Unhappy Customers’ Repurchase Intentions

The Internet Spreads the Story of
Poor Service Recovery
©
2009
Big
Break
Enterprises/Dave
Carroll

The Service Recovery Paradox
• An initially disappointed customer (service failure) who
has experienced good service recovery might be even
more satisfied and loyal with the service provider.
• Should a firm “screw up” just a little so that it can “fix
the problem” superbly?
• What are the problems with such an approach?
-vast majority of customers do not complain
-it is expensive to fix mistakes
-reliability is the most critical determinant of service quality
-repurchase intention and image perception is not good
-dependent on the context and situation

How Customers Respond to Service Failures

Types of Complainers
• Passives: least likely to take any action, say anything
to the provider, spread negative WOM, or complain
to a third party; doubtful of the effectiveness of
complaining
• Voicers: actively complain to the provider, but not
likely to spread negative WOM; believe in the
positive consequences of complaining - the service
provider’s best friends!

Types of Complainers
• Irates: more likely to engage in negative WOM to
friends and relatives and to switch providers; average
in their propensity to complain to provider; unlikely
to complain to third parties; more angry, less likely to
give provider a second chance
• Activists: above average propensity to complain on
all levels; more likely to complain to a third party;
express their opinions via social media

Service Recovery Strategies

Respond Quickly

Top 12 Remedies Customers Seek

Treat Customers Fairly
• Outcome fairness
– Outcome or compensation (monetary compensation, future free
service, reduced charges, repairs, or replacements) should match the
customer’s level of dissatisfaction; equality with what other customers
receive; choices
• Procedural fairness
– Fairness in terms of policies, rules, timeliness of the complaint
process; clarity, speed, no hassles; also choices: “What can we do to
compensate you…?”
• Interactional fairness
– Politeness, care, and honesty on the part of the company and its
employees; rude behavior on the part of employees may be due to
lack of training and empowerment

Fixing the Problem
• Strategies for fixing the problem include:
– encouraging and tracking complaints (customer research –
satisfaction surveys, critical incident techniques)
– learning from recovery experiences (for improving service
delivery, method: root-cause analysis)
– learning from lost customers (marketing research – depth
interviews)
– making the service fail-safe – Do It Right the First Time
(reliability – to do it right the first time)

Service Guarantees
• In a business context, a guarantee is a pledge or assurance
that a product offered by a firm will perform as promised and,
if not, then some form of reparation will be undertaken by the
firm
• For tangible products, a guarantee is often done in the form
of a warranty
• Services are often not guaranteed
– Cannot return the service
– Service experience is intangible (so what do you guarantee?)

Characteristics of an Effective
Service Guarantee
• Limited Restrictions and Exclusions
– The guarantee should make its promise free of “if, and or but”
conditions or exclusions associated with many legal documents.
• Meaningful
– The firm should guarantee elements of the service that are important to
the customer
– The payout should cover fully the customer’s dissatisfaction
• Easy to Understand
– Customers need to understand what to expect
– Employees need to understand what to do
• Easy to Invoke
– The firm should eliminate hoops or red tape in the way of accessing or
collecting on the guarantee
– Domino’s Pizza India, delivering tasty pizzas within 30 minutes or else
free

The Hampton Inn Service
Guarantee

When to Use (or Not Use) a Guarantee
• Reasons companies might NOT want to offer a
service guarantee:
– Existing service quality is poor
– A guarantee does not fit the company’s image
(luxury hotels)
– Service quality is truly uncontrollable (university to
guarantee job)
– Potential exists for customer abuse of the guarantee
– Costs of the guarantee outweigh the benefits
– Customers perceive little risk in the service (relatively
inexpensive, relatively invariable)

Switching Versus Staying Following Service Recovery

Session 8
Aligning Service Design And Standards:
Services Innovation and Design

CUSTOMER
COMPANY
Gap 2: The Service
Design and Standards
Gap
Customer-driven
service designs and
standards
Company
perceptions of
customer
expectations
Provider Gap 2

Service Innovation and Design
• Challenges of Service Innovation and Design
• Important Considerations for Service Innovation
• Types of Service Innovations
• Stages in Service Innovation and Development
• Service Blueprinting: A Technique for Service
Innovation and Design

Challenges of Service Innovation and Design
(Risks of Relying on Words Alone to Describe Services)
• Oversimplification
• Incompleteness
• Subjectivity
• Biased Interpretation

Important Considerations for Service
Innovation
• Involve customers and employees
• Employ service design thinking and
techniques
Service design aims to ensure service interfaces are
useful, usable, and desirable from the client’s point of
view and efficient and distinctive from the supplier’s
point of view.

Important Considerations for Service
Innovation
• The five principles of service design thinking:
– User-centered
– Cocreative
– Sequencing
– Evidencing
– Holistic
Primary technique for service design is service blueprinting.

Types of Service Offering Innovations
• Major or radical innovations
• Start-up businesses
• New services for the currently served market
• Service line extensions
• Service improvements
• Style changes

Service Innovation and
Development Process

New Service Strategy Matrix for Identifying
Growth Opportunities

Service Blueprinting
• A tool for simultaneously depicting the service
process, the points of customer contact, and
the evidence of service from the customer’s
point of view.

Service Blueprint Components

Blueprint for Overnight Hotel Stay
Service

Benefits of Service Blueprinting
• Provides a platform for innovation.
• Recognizes roles and interdependencies among functions,
people, and organizations.
• Facilitates both strategic and tactical innovations.
• Transfers and stores innovation and service knowledge.
• Designs moments of truth from the customer’s point of view.
• Suggests critical points for measurement and feedback in the
service process.
• Clarifies competitive positioning.
• Provides understanding of the ideal customer experience.

Session 9
Aligning Service Design And Standards: Customer-
Defined Service Standards

Customer-Defined Service Standards
• Factors Necessary for Appropriate Service
Standards
• Types of Customer-Defined Service Standards
• Development of Customer-Defined Service
Standards

FedEx Service Quality Indicator – SQI

Factors Necessary for Appropriate Service
Standards
• Standardization of service behaviors and actions
– Standardization implies a nonvarying sequential process
(similar to the mass production of goods) in which each
step is laid out in order and all outcomes are uniform.
– Goal of standardization: to produce a consistent service
product in every transaction
– Standardization of service can happen through
• Substitution of technology for personal contact and human efforts
• Improvement in work method
• Combination of these two methods

Standards
• Formal service targets and goals
– Setting specific targets for individual behaviors and
actions.
– Example responsiveness: call the customer back quickly
(vague objective)
Call each customer back within four hours (specific objective)

Standards
• Customer, Not Company-, Defined Standards
-Company-defined standards are established to reach
internal company goals for productivity, efficiency, cost
or technical quality.
-Customer-defined standards: operational standards
based on pivotal customer requirements identified by
customers. These standards are chosen to match
customer expectations and ensure customer
satisfaction.

Types of Customer-Defined Service Standards
• Hard standards and measures: things that can be
counted, timed, or observed through audits.
• Example Zappos.com
– Responsiveness: respond to 80% of all incoming call within
20 seconds, respond to all e-mail messages in less than 4
hours, respond to live (online) chats in less than 10 seconds
• Example Southwest Airlines
– Reliability: on-time arrival
– Responsiveness: two-week reply to letters

Types of Customer-Defined Service Standards
• Soft standards and measures: opinion-based
measures that can not be directly observed.
• Soft standards are not easily quantifiable.
• Example two soft standards for employees are to
display behavior that could be friendly, polite,
cheerful and to offer an appropriate verbal greeting

Process for Setting Customer-Defined Standards

Blueprint for Overnight Hotel Stay
Service

What Customers Expect: Getting to Actionable
Steps (Figure 9.3)

Linkage between Soft Measures and Hard
Measures: Complaint Handling (Figure 9.4)

Standards at Four Seasons
• Seven Service Culture Standards
1. Smile
2. Eye
3. Recognition
4. Voice
5. Informed
6. Clean
7. Everyone

Session 10
Aligning Service Design and Standards:
Physical Evidence and the Servicescape

Physical Evidence
• “The environment in which the service is delivered
and in which the firm and the customer interact, and
any tangible commodities that facilitate performance
or communication of the service.”
• Importance: physical evidence is used for
– Communicating service quality attributes
– Setting customer expectations
– Creating service experience
• Physical evidence = Servicescape (Physical facility) +
other tangibles (tangible communication)

Examples of Physical Evidence from
the Customer’s Point of View

Types of Servicescape
(Typology of Service Organizations Based on Form and Use of Servicescape)

Strategic Roles of the Servicescape
• Package
– conveys expectations
– influences perceptions
• Facilitator
– facilitates the flow of the service delivery process
• provides information (how am I to act?)
• facilitates the ordering process (how does this work?)
• facilitates service delivery
• Socializer
– facilitates interaction between:
• customers and employees
• customers and fellow customers
• Differentiator
– sets provider apart from competition in the mind of the consumer

Understanding Servicescape
Effects on Behavior
• Stimulus-organism-response theory
– Stimulus = multidimensional environment
– Organism = customers and employees
– Response = behaviors directed at the environment

A Framework for Understanding Environment-User Relationships
in Service Organizations

Individual Behaviors in the
Servicescape
• Environmental psychologists suggest that
people react to places with two general, and
opposite forms of behavior:
– Approach behaviors: all positive behaviors that
might be directed to a place such as
• Desire to stay, explore, work, affiliate
• Shopping enjoyment, spending time and money
– Avoidance behaviors: negative behaviors
• Desire not to stay, to explore etc.

Social Interactions in the Servicescape
• All social interaction is affected by the physical
container in which it occurs
– Customer-employee
– Customer-customer
• Scripts (particular progression of events)
• Physical proximity
• Seating arrangements
• Size
• Flexibility

Internal Responses to the
Servicescape
• Cognition: environment (Servicescape) can affect on
people’s beliefs about a place and the people and
products found in that place
• Emotion: color, décor, music, scent affect mood
– Pleasure/displeasure
– Degree of arousal (amount of stimulation)
• Physiology: volume, temperature, air quality, lighting
can cause physical discomfort and even pain

Environmental Dimensions
 Ambient Conditions: affect the 5 senses
◦ Temperature, lighting, noise, music, scent, color
 Spatial Layout and Functionality: size, shape, and arrangement
of machinery, equipment, and furnishings and the ability of such
to facilitate customer and employee goals
◦ Accessibility, aesthetics, seating comfort
 Signs, Symbols, Artifacts: explicit or implicit communication of
meaning; often culturally embedded; important in forming first
impressions
◦ Way-finding, labels, rules of behavior

Services Marketing ppts 1.ppt

Recommended

Recommended

More Related Content

Similar to Services Marketing ppts 1.ppt

Similar to Services Marketing ppts 1.ppt (20)

Recently uploaded

Recently uploaded (20)

Services Marketing ppts 1.ppt