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ServicesMarketing,CopyrightHoughtonMifflinCompany.Allrightsreserved.,PowerPointPresentationbyCharlieCook,13,PartThreeProductDecisions,CopyrightHoughtonMifflinCompany.Allrightsreserved.,132,ChapterLearningObjectives,TounderstandthenatureandimportanceofservicesToidentifythecharacteristicsofservicesthatdifferentiatethemfromgoodsTodescribehowthecharacteristicsofservicesinfluencethedevelopmentofmarketingmixesforservicesTounderstandtheimportanceofservicequalityandexplainhowtodeliverexceptionalservicequalityToexplorethenatureofnonprofitmarketing,CopyrightHoughtonMifflinCompany.Allrightsreserved.,133,ChapterOutline,TheNatureandImportanceofServicesCharacteristicsofServicesDevelopingandManagingMarketingMixesforServicesServiceQualityNonprofitMarketing,CopyrightHoughtonMifflinCompany.Allrightsreserved.,134,TheNatureandImportanceofServices,ServiceAnintangibleproductinvolvingadeed,performance,oreffortthatcannotbephysicallypossessedApplicationofhumanand/ormechanicaleffortsdirectedatpeopleorobjectsServiceFacts(U.S.)Serviceindustriesaccountforover50%ofGDP.Serviceindustriesemploy80%ofnonfarmworkers.Morethanhalfofnewbusinessesareservicefirms.Serviceshaveincreasedintandemwiththelong-termgrowthoftheU.S.economy.,CopyrightHoughtonMifflinCompany.Allrightsreserved.,135,CharacteristicsofServices,IntangibilityServicesareactionsthathavenopermanentphysicalqualitiesasopposedtogoodswhichcanbetouchedandpossessedovertime.InseparabilityofProductionandConsumptionTheproductionofaservicecannotbeseparatedfromitsconsumptionbythecustomer.Servicesareproduced,sold,andconsumedallatthesametime.PerishabilityServicescannotbeproducedaheadoftimeandstoreduntilneeded.,CopyrightHoughtonMifflinCompany.Allrightsreserved.,136,TheTangibilityContinuum,FIGURE13.1,CopyrightHoughtonMifflinCompany.Allrightsreserved.,137,CharacteristicsofServices(contd),HeterogeneityVariationinthequalityofservicesdeliveredbyindividualsandorganizationsClient-BasedRelationshipsInteractionsthatresultinsatisfiedcustomerswhouseaservicerepeatedlyovertime,CopyrightHoughtonMifflinCompany.Allrightsreserved.,138,CharacteristicsofServices(contd),CustomerContactThelevelofinteractionbetweentheserviceproviderandthecustomernecessarytodelivertheserviceHigh-contactservicesrequirethecustomertobepresentduringtheproductionoftheservice.Highcontactservicesrequirewell-trainedandmotivatedservicepersonnel.Low-contactservicesdonotrequirethecustomerscontinuouspresencewhiletheserviceiscarriedout.,CopyrightHoughtonMifflinCompany.Allrightsreserved.,139,CopyrightHoughtonMifflinCompany.Allrightsreserved.,1310,CopyrightHoughtonMifflinCompany.Allrightsreserved.,1311,DevelopingandManagingMarketingMixesforServices,DevelopmentofServicesPackageorbundleofservicesconsistsofcoreservicesthataretheexpectedbasicserviceexperience.supplementaryservicesthatdifferentiatetheservicebundlefromthoseofothercompetitors.“Basic,”“Standard,”and“Deluxe”servicecombinationsarecustom-tailoredtoconsumersspecificneeds.,CopyrightHoughtonMifflinCompany.Allrightsreserved.,1312,DevelopingandManagingMarketingMixesforServices(contd),DevelopmentofServices(contd)EffectivedeliveryofservicesSegmentthepleasureandcombinethepainGetbadexperiencesoutofthewayassoonaspossibleBuildcommitmentthroughchoiceGiveritualtoconsumersFinishstrong,CopyrightHoughtonMifflinCompany.Allrightsreserved.,1313,DevelopingandManagingMarketingMixesforServices(contd),DistributionofServicesCustomerscometoaservicefacility.Servicesarebroughttotheconsumer.Servicesareprovidedat“armslength”,withnoface-to-facecustomercontact.,CopyrightHoughtonMifflinCompany.Allrightsreserved.,1314,24/7ATM,DevelopingandManagingMarketingMixesforServices(contd),DistributionofServicesMarketingchannelsaretypicallyshortanddirect,withnoorfewintermediaries.Inseparabilityofservicerequiresafocusonservicedemand/supplymanagement(e.g.,schedulingofservicedelivery).Accessibilitytoservicesisincreasedbysubstitutingautomatedequipmentforcontactpersonnel.,CopyrightHoughtonMifflinCompany.Allrightsreserved.,1315,DevelopingandManagingMarketingMixesforServices(contd),PromotionofServicesOvercomingtheIntangibilityofServicesProvidingtangible(symbolic)cues/imagesPromotingprice,guarantees,availability,personnelUsingconcrete,specificlanguageinadvertisingUsingpersonalsellingandword-of-mouthadvertisingOfferingservicesonatrialbasis,CopyrightHoughtonMifflinCompany.Allrightsreserved.,1316,DevelopingandManagingMarketingMixesforServices(contd),PricingofServicesPerformanceofspecifictaskscarwashingAmountoftimetocompletetheservicebabysittingVariablepricingbasedonthelevelofdemand;highpriceatpeakdemand,lowerpriceswhendemandslackensairlineseatsBundlingofservicesrequiresdecisionsonunit,combination,orseparatepricingtelephoneservicesPricingasanindicatorofqualityisusedwhenconsumershavenoothercuestoindicatequality.,CopyrightHoughtonMifflinCompany.Allrightsreserved.,1317,ServiceQualityModel,FIGURE13.2,Source:“ServiceQualityModel,”adaptedfromA.Parasuraman,LeonardL.Berry,andValarieA.Zeithaml,“AnEmpiricalExaminationofRelationshipsinanExtendedServiceQualityModel,”MarketingScienceInstituteWorkingPaperSeries,Reportno.90-112(Cambridge,MA:MarketingScienceInstitute,1990).Usedwithpermission.,CopyrightHoughtonMifflinCompany.Allrightsreserved.,1318,ServiceQuality,ServiceQualityCustomersperceptionofhowwellaservicemeetsorexceedstheirexpectationsServicequalityisjudgedfromthecustomersviewpoint.,CopyrightHoughtonMifflinCompany.Allrightsreserved.,1319,ServiceQuality(contd),CustomerEvaluationofServiceQualitySearchqualitiesTangibleattributesthatcanbejudgedbeforethepurchaseofaproductExperiencequalitiesAttributesassessableonlyduringpurchaseandconsumptionofaserviceCredencequalitiesAttributesthatcustomersmaynotbeabletoevaluateevenafterpurchasingandconsumingtheservice,CopyrightHoughtonMifflinCompany.Allrightsreserved.,1320,CopyrightHoughtonMifflinCompany.Allrightsreserved.,1321,DeliveringExceptionalServiceQuality,AnalysisofCustomerExpectationsLevelsofcustomerserviceexpectationsDesired:ifmet,customerisverysatisfiedAcceptable:ifmet,customerisnotdissatisfiedConductmarketingresearchFocusgroupsCommentcardsAskingemployees,CopyrightHoughtonMifflinCompany.Allrightsreserved.,1322,DeliveringExceptionalServiceQuality(contd),ServiceQualitySpecificationsEstablishgoalsforservicedeliverySecuremanagementscommitmenttoservicequalityEmployeePerformanceTraincustomer-contactemployeesatalllevelsIncorporateservicequalityintoemployeeevaluationandcompensationsystems,CopyrightHoughtonMifflinCompany.Allrightsreserved.,1323,DeliveringExceptionalServiceQuality(contd),ManagementofServiceExpectationsConductadvertisingcam

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