服务营销.[英文原版].christopher lovelock.chapter 7

CHAPTER7POSITIONINGSERVICESINCOMPETITIVEMARKETSTOSUCCEEDINOUROVERCOMMUNICATEDSOCIETY,ACOMPANYMUSTCREATEAPOSITIONINTHEPROSPECTSMIND,APOSITIONTHATTAKESINTOCOMSIDERATIONNOTONLYACOMPANYSOWNSTRIATESANDWEAKNESSES,BUTTHOSEOFITSCOMPETITORSASWELLALREISANDJACKTROUTTHEESSENCCOFSTRATEGYISCHOOSINGFOTOPERFORMACTIVIFIESDIFFERENFLYTHANRIVALSDOMICHALPORTERASKAGROUPOFINDIFFERENTSERVICEBUSINESSESHOWTHEYMANAGERSCOMPETE,ANDTHECHANCESAREHIGHTHATMANYWILLSAYSIMPLY,“ONSERVICE“PRESSTHEMALITTLEFURTHER,ANDTHEYMAYADDWORDSORPHRASESSUCHAS“VALUEFORMONEY,“SERVICEQUALITY,“OURPEOPLE,“OR“CONVENIENCE“NONEOFTHISISVERYHELPFULTOAMARKETINGSPECIALISTWHOISTRYINGTODEVELOPAMEANINGFULVALUEPROPOSITIONANDAVIABLEBUSINESSMODELFORASERVICEPRODUCTTHATWILLENABLEITTOCOMPETEPROFITABLYINTHEMARKETPLACEATISSUEISWHATMAKESCONSUMERSORINSTITUTIONALBUYERSSELECTANDREMAINLOYALTOONESUPPLIEROVERANOTHERTERMSSUCHAS“SERVICE“TYPICALLYSUBSUMEAVARIETYOFSPECIFICCHARACTERISTICS,RANGINGFROMTHESPEEDWITHWHICHASERVICEISDELIVEREDTOTHEQUALITYOFINTERACTIONSBETWEENCUSTOMERSANDSERVICEPERSONNELANDFROMAVOIDINGERRORSTOPROVIDINGDESIRABLE“EXTRAS“TOSUPPLEMENTTHECORESERVICELIKEWISE,“CONVENIENCE“COULDREFERTOASERVICETHATSDELIVEREDATACONVENIENTLOCATION,AVAILABLEATCONVENIENTTIMES,OREASYTOUSE,WITHOUTKNOWINGWHICHPRODUCTFEATURESAREOFSPECIFICINTERESTTOCUSTOMERS,ITSHARDFORMANAGERSTODEVELOPANAPPROPRIATESTRATEGY,INAHIGHLYCOMPETITIVEENVIRONMENT,THERESARISKTHATCUSTOMERSWILLPERCEIVELITTLEREALDIFFERENCEBETWEENCOMPETINGALTERNATIVESANDSOMAKETHEIRCHOICESBASEDONWHOOFFERSTHELOWESTPRICEPOSITIONINGSTRATEGYISCONCERNEDWITHCREATING,COMMUNICATING,ANDMAINTAININGDISTINCTIVEDIFFERENCESTHATWILLBENOTICEDANDVALUEDBYTHOSECUSTOMERSWITHWHOMTHEFIRMWOULDMOSTLIKETODEVETOPALONGTERMRELATIONSHIPSUCCESSFULPOSITIONINGREQUIRESMANAGERSTOUNDERSTANDTHEIRTARGETCUSTOMERSPREFERENCES,THEIRCONCEPTIONSOFVALUE,ANDTHECHARACTERISTICSOFTHEIRCOMPETITORSOFFERINGSPRICEANDPRODUCTATTRIBUTESARETHETWOELEMENTSOFTHE8PMARKETINGVARIABLESTHATAREMOSTCOMMONLYASSOCIATEDWITHPOSITIONINGSTRATEGY,BUTDELIVERYSYSTEMS,SERVICESCHEDULES,ANDLOCATIONSPLACEANDTIMEALSOPLAYEROLEFORMANYSERVICESINTHISCHAPTER,WEEXAMINETHENEEDFORFOCUSINACOMPETITIVEENVIRONMENT,ANDREVIEWTHEISSUESINVOLVEDINDEVELOPINGAPOSITIONINGSTRATEGYSPECIFICALLY,WEEXPLORETHEFOLLOWINGQUESTIONS1WHYISITSOIMPORTANTFORSERVICEFIRMSTOADOPTFOCUSEDSTRATEGIESINTHEIRCHOICEOFMARKETSANDPRODUCTS2WHATISTHEDISTINCTIONBETWEENIMPORTANTANDDETERMINANTATTRIBUTESINCONSUMERDECISIONMAKING3WHATARETHEKEYCONCEPTSUNDERLYINGCOMPETITIVEPOSITIONINGSTRATEGYFORSERVICES4WHENISITAPPROPRIATETOREPOSITIONANEXISTINGSERVICEOFFERING5HOWCANPOSITIONINGMAPSHELPUSTOUNDERSTANDANDRESPONDBETTERTOCOMPETITIVEDYNAMICSFOCUSUNDERLIESTHESEARCHFORCOMPETITIVEADVANTAGEASCOMPETITIONINTENSIFIESINTHESERVICESECTOR,ITSBECOMINGEVERMOREIMPORTANTFORSERVICEORGANIZATIONSTODIFFERENTIATETHEIRPRODUCTSINWAYSTHATAREMEANINGFULTOCUSTOMERSINHIGHLYDEVELOPEDECONOMIES,GROWTHISSLOWINGINMATURECONSUMERSERVICEINDUSTRIESSUCHASBANKING,INSURANCE,HOSPITALITY,ANDEDUCATIONSO,FORAFIRMTOGROW,ITHASTOTAKESHAREFROMDOMESTICCOMPETITORSOREXPANDINTOINTERNATIONALMARKETSINEACHINSTANCE,FIRMSSHOULDBESELECTIVEINTARGETINGCUSTOMERSANDSEEKTOBEDISTINCTIVEINTHEWAYTHEYPRESENTTHEMSELVESAMARKETNICHETHATMAYSEEMTOONARROWTOOFFERSUFFICIENTSALESWITHINONECOUNTRYMAYREPRESENTASUBSTANTIALMARKETWHENVIEWEDFROMANINTERNATIONALOREVENGLOBALPERSPECTIVECOMPETITIVESTRATEGYCANTAKEMANYDIFFERENTROUTESGEORGEDAYOBSERVESTHEDIVERSITYOFWAYSABUSINESSCANACHIEVEACOMPETITIVEADVANTAGEQUICKLYDEFEATSANYGENERALIZATIONSORFACILEPRESCRIPTIONSFIRSTANDFOREMOST,ABUSINESSMUSTSETITSELFAPARTFROMITSCOMPETITIONTOBESUCCESSFUL,ITMUSTIDENTIFYANDPROMOTEITSELFASTHEBESTPROVIDEROFATTRIBUTESTHATAREIMPORTANTTOTARGETCUSTOMERS1WHATTHISMEANSISTHATMANAGERSNEEDTOTHINKSYSTEMATICALLYABOUTALLFACETSOFTHESERVICEPACKAGEANDTOEMPHASIZECOMPETITIVEADVANTAGEONTHOSEATTRIBUTESTHATWILLBEVALUEDBYCUSTOMERSINTHETARGETSEGMENTSFOURFOCUSSTRATEGIESITSUSUALLYNOTREALISTICFORAFIRMTOTRYTOAPPEALTOALLPOTENTIALBUYERSINAMARKET,BECAUSECUSTOMERSAREVARIEDINTHEIRNEEDS,PURCHASINGBEHAVIOR,ANDCONSUMPTIONFIGURE71BASICFOCUSSTRATEGIESFORSERVICESSOURCEROBERTJOHNSTON,“ACHIEVINGFOCUSINSERVICEORGANIZATIONS“THESERVICEINDUSTRIESJOURNAL,16JANUARY,19961020PATTERNS,ANDOFTENARETOONUMEROUSANDGEOGRAPHICALLYWIDELYSPREADSERVICEFIRMSALSOVARYWIDELYINTHEIRABILITIESTOSERVEDIFFERENTTYPESOFCUSTOMERSSO,RATHERTHANATTEMPTINGTOCOMPETEINANENTIREMARKET,EACHCOMPANYNEEDSTOFOCUSITSEFFORTSONTHOSECUSTOMERSITCANSERVEBESTINMARKETINGTERMS,FOCUSMEANSPROVIDINGARELATIVELYNARROWPRODUCTMIXFORAPARTICULARMARKETSEGMENTAGROUPOFBUYERSWHOSHARECOMMONCHARACTERISTICS,NEEDS,PURCHASINGBEHAVIOR,ORCONSUMPTIONPATTERNSTHISCONCEPTISATTHEHEARTOFVIRTUALLYALLSUCCESSFULSERVICESTRATEGIESAMONGFIRMS,WHICHHAVEIDENTIFIEDTHESTRATEGICALLYIMPORTANTELEMENTSINTHEIRSERVICEOPERATIONSANDHAVECONCENTRATEDTHEIRRESOURCESONTHEMTHEEXTENTOFACOMPANYSFOCUSCANBEDESCRIBEDALONGTWODIMENSIONSMARKETFOCUSANDSERVICEFOCUS2MARKETFOCUSISTHEEXTENTTOWHICHAFIRMSERVESFEWORMANYMARKETS,WHEREASSERVICEFOCUSDESCRIBESTHEEXTENTTOWHICHITOFFERSFEWORMANYSERVICESTHESETWODIMENSIONSDEFINETHEFOURBASICFOCUSSTRATEGIESSHOWNINFIGURE71AFULLYFOCUSEDORGANIZATIONPROVIDESALIMITEDRANGEOFSERVICESPERHAPSJUSTASINGLECOREPRODUCTTOANARROWANDSPECIFICMARKETSEGMENTAMARKETFOCUSEDCOMPANYCONCENTRATESONANARROWMARKETSEGMENTBUTOFFERSAWIDERANGEOFSERVICESSERVICEFOCUSEDFIRMSOFFERANARROWRANGEOFSERVICESTOAFAIRLYBROADMARKETFINALLY,MANYSERVICEPROVIDERSFAILINTOTHEUNFOCUSEDCATEGORY,BECAUSETHEYTRYTOSERVEBROADMARKETSANDPROVIDEAWIDERANGEOFSERVICESINGENERAL,THATSNOTAGOODIDEA,ALTHOUGHPUBLICUTILITIESANDGOVERNMENTAGENCIESMAYBEOBLIGEDTODOSOHOWSHOULDYOUDECIDEWHICHOFTHETHREEALTERNATIVE“FOCUSED“STRATEGIESTOPURSUEADOPTINGAFULLYFOCUSEDSTRATEGYPRESENTSBOTHRISKSANDOPPORTUNITIESDEVELOPINGRECOGNIZEDEXPERTISEINAWELLDEFINEDNICHEMAYPROVIDEPROTECTIONAGAINSTWOULDBECOMPETITORSANDALLOWSAFIRMTOCHARGEPREMIUMPRICESTHEBIGGESTRISKISTHATTHEMARKETMAYBETOOSMALLTOGENERATETHEVOLUMEOFBUSINESSNEEDEDFORFINANCIALSUCCESSOTHERRISKSINCLUDETHEDANGERTHATDEMANDFORTHESERVICEMAYBEDISPLACEDBYGENERICCOMPETITIONFROMALTERNATIVEPRODUCTS,ORTHATPURCHASERSINTHECHOSENSEGMENTMAYBEVERYSUSCEPTIBLETOANECONOMICDOWNTURNONEREASONWHYFIRMSWITHANARROWPRODUCTLINEELECTTOSERVEMULTIPLESEGMENTSASERVICEFOCUSEDSTRATEGYISTOCREATEAPORTFOLIOOFCUSTOMERSTHATHEDGESAGAINSTSUCHARISKHOWEVER,ASNEWSEGMENTSAREADDED,THEFIRMNEEDSTODEVELOPEXPERTISEINSERVINGEACHSEGMENT,WHICHMAYREQUIREABROADERSALESEFFORTANDGREATERINVESTMENTINMARKETINGCOMMUNICATIONPARTICULARLYINB2BMARKETSOFFERINGABROADPRODUCTLINETOANARROWLYDEFINEDTARGETSEGMENTOFTENLOOKSATTRACTIVE,BECAUSEITOFFERSTHEPOTENTIALOFSELLINGMULTIPLESERVICESTOASINGLEPURCHASERHOWEVER,BEFOREADOPTINGAMARKETFOCUSEDSTRATEGY,MANAGERSNEEDTOBESURETHATTHEIRFIRMSHAVETHEOPERATIONALCAPABILITYTODOANEXCELLENTJOBOFDELIVERINGEACHOFTHEDIFFERENTSERVICESSELECTEDTHEYALSONEEDTOUNDERSTANDCUSTOMERPURCHASINGPRACTICESANDPREFERENCES,INABUSINESSTOBUSINESSCONTEXT,WHENTRYINGTOCROSSSELLADDITIONALSERVICESTOTHESAMECLIENT,MANYFIRMSHAVEBEENDISAPPOINTEDTOFINDTHATDECISIONSONPURCHASINGTHENEWSERVICEAREMADEBYANENTIRELYDIFFERENTGROUPWITHINTHECLIENTCOMPANYMARKETSEGMENTATIONFORMSTHEBASISFORFOCUSEDSTRATEGIESSERVICEFIRMSVARYWIDELYINTHEIRABILITIESTOSERVEDIFFERENTTYPESOFCUSTOMERSHENCE,RATHERTHANTRYINGTOCOMPETEINANENTIREMARKET,PERHAPSAGAINSTSUPERIORCOMPETITORS,EACHFIRMSHOULDADOPTASTRATEGYOFMARKETSEGMENTATION,IDENTIFYINGTHOSEPARTS,ORSEGMENTS,OFTHEMARKETTHATITCANSERVEBESTFIRMSTHATAREINTUNEWITHCUSTOMERREQUIREMENTSMAYCHOOSETOEMPLOYANEEDSBASEDSEGMENTATIONAPPROACH,FOCUSINGONTHOSECUSTOMERSWHOMRESEARCHSHOWSTOVALUESPECIFICATTRIBUTES3MARKETANDMICROSEGMENTATIONBECAUSEEACHPERSONORCORPORATEPURCHASERHASDISTINCTIVEEVENUNIQUECHARACTERISTICSANDNEEDS,ANYPROSPECTIVEBUYERISPOTENTIALLYASEPARATETARGETSEGMENTTRADITIONALLY,FIRMSHAVESOUGHTTOACHIEVEECONOMIESOFSCALEBYMARKETINGTOALLCUSTOMERSWITHINASPECIFICMARKETSEGMENTANDSERVINGEACHINASIMILARFASHIONASTRATEGYOFMASSCUSTOMIZATIONOFFERINGASERVICEWITHSOMEINDIVIDUALIZEDPRODUCTELEMENTSTOALARGENUMBEROFCUSTOMERSATARELATIVELYLOWPRICEMAYBEACHIEVEDBYOFFERINGASTANDARDIZEDCOREPRODUCTBUTTAILORINGSUPPLEMENTARYSERVICEELEMENTSTOFITTHEREQUIREMENTSOFINDIVIDUALBUYERS4THECREATIONOFCUSTOMERDATABASESANDSOPHISTICATEDANALYTICALSOFTWAREMAKESITNOWPOSSIBLEFORFIRMSTOADOPTMICROSEGMENTATIONSTRATEGIESTARGETEDATSMALLGROUPSOFCUSTOMERSTHATSHARECERTAINRELEVANTCHARACTERISTICSATASPECIFICPOINTINTIMENOTETHESTRATEGYEMPLOYEDBYTHEROYALBANKOFCANADA,ASDESCRIBEDINBESTPRACTICEINACTION71IDENTIFYINGANDSELECTINGTARGETSEGMENTSAMARKETSEGMENTISCOMPOSEDOFAGROUPOFBUYERSWHOSHARECOMMONCHARACTERISTICS,NEEDS,PURCHASINGBEHAVIOR,ORCONSUMPTIONPATTERNSEFFECTIVESEGMENTATIONSHOULDGROUPBUYERSINTOSEGMENTSINWAYSTHATRESULTINASMUCHSIMILARITYASPOSSIBLEONTHERELEVANTCHARACTERISTICSWITHINEACHSEGMENT,BUTDISSIMILARITYONTHOSESAMECHARACTERISTICSBETWEENSEGMENTSATARGETSEGMENTISONETHATAFIRMHASSELECTEDFROMAMONGTHOSEINTHEBROADERMARKETANDMAYBEDEFINEDONTHEBASISOFSEVERALVARIABLESFORINSTANCE,ADEPARTMENTSTOREINAPARTICULARCITYMIGHTTARGETRESIDENTSOFTHEMETROPOLITANAREAGEOGRAPHICSEGMENTATION,WHOHAVEINCOMESWITHINACERTAINRANGEDEMOGRAPHICSEGMENTATION,VALUEPERSONALSERVICEFROMKNOWLEDGEABLESTAFF,ANDARENOTHIGHLYPRICESENSITIVEBOTHREFLECTINGSEGMENTATIONACCORDINGTOEXPRESSEDATTITUDESANDBEHAVIORALINTENTIONSBECAUSEATLEASTSOMECOMPETINGRETAILERSINTHECITYWILLBETARGETINGTHESAMECUSTOMERS,THEDEPARTMENTSTOREHASTOCREATEADISTINCTIVEAPPEALAPPROPRIATECHARACTERISTICSTOHIGHLIGHTMIGHTINCLUDEAWIDEARRAYOFMERCHANDISECATEGORIES,BREADTHOFSELECTIONWITHINEACHPRODUCTCATEGORY,ANDTHEAVAILABILITYOFSUCHSUPPLEMENTARYSERVICESASADVICEANDHOMEDELIVERYSERVICEFIRMSTHATAREDEVELOPINGSTRATEGIESBASEDONUSEOFTECHNOLOGYRECOGNIZETHATCUSTOMERSCANALSOBESEGMENTEDACCORDINGTOTHEIRDEGREEOFCOMPETENCEANDCOMFORTINUSINGTECHNOLOGYBASEDDEHVERYSYSTEMSSOMEMARKETSEGMENTSOFFERBETTEROPPORTUNITIESTHANOTHERSMARKETERSSHOULDSELECTTARGETSEGMENTSNOTONLYONTHEBASISOFTHEIRSALESANDPROFITPOTENTIAL,BUTALSOWITHREFERENCETOTHEFIRMSABILITYTOMATCHOREXCEEDCOMPETINGOFFERINGSDIRECTEDATTHESAMESEGMENTSOMETIMESRESEARCHWILLSHOWTHATCERTAINMARKETSEGMENTSAREBESTPRACTICEINACTION71CONTINUOUSSEGMENTATIONATTHEROYALBANKOFCANADA“UNDERSERVED,MEANINGTHATTHEIRNEEDSARENOTWELLMETBYEXISTINGSUPPLIERSSUCHMARKETSAREOFTENSURPRISINGLYLARGEINMANYEMERGINGMARKETECONOMIES,HUGENUMBERSOFCONSUMERSHAVEINCOMESTHATARETOOSMALLTOATTRACTTHEINTERESTOFSERVICEBUSINESSESACCUSTOMEDTOFOCUSONTHENEEDSOFMOREAFFLUENTCUSTOMERSCOLLECTIVELY,HOWEVER,SMALLWAGEEARNERSREPRESENTAVERYBIGMARKETANDMAYOFFEREVENGREATERPOTENTIALFORTHEFUTURE,ASMANYOFTHEMMOVEUPTOWARDMIDDLECLASSSTATUSSERVICEPERSPECTIVES71DESCRIBESANINNOVATIVEAPPROACHTOPROVIDINGFINANCIALSERVICESTOLOWERINCOMEHOUSEHOLDSINMEXICOSERVICEATTRIBUTESANDLEVELSHOWCANYOUBESTDEVELOPTHERIGHTSERVICECONCEPTFORAPARTICULARTARGETSEGMENTFORMALRESEARCHISOFTENNEEDEDTOIDENTIFYWHATATTRIBUTESOFAGIVENSERVICEAREIMPORTANTTOSPECIFICMARKETSEGMENTSANDHOWWELLPROSPECTIVECUSTOMERSPERCEIVECOMPETINGORGANIZATIONSASPERFORMINGAGAINSTTHESEATTRIBUTESHOWEVER,ITSDANGEROUSTOOVERGENERALIZEYOUSHOULDRECOGNIZETHATTHESAMEINDIVIDUALSMAYSETDIFFERENTPRIORITIESFORATTRIBUTESACCORDINGTOTHEPURPOSEFORUSINGTHESERVICEWHOMAKESTHEDECISIONTHETIMINGOFUSETIMEOFDAY/WEEK/SEASONWHETHERTHEINDIVIDUALISUSINGTHESERVICEAONEORWITHAGROUPTHECOMPOSITIONOFTHATGROUPSERVICEPERSPECTIVES7,1BANCOAZTECACATERSTOTHELITTLEGUYCONSIDERTHECRITERIATHATYOUMIGHTUSEWHENCHOOSINGARESTAURANTFORLUNCHWHEN1ONVACATIONWITHFRIENDSORFAMILY,2MEETINGWITHAPROSPECTIVEBUSINESSCLIENT,OR3GOINGFORAQUICKMEALWITHACOWORKERGIVENAREASONABLESELECTIONOFALTERNATIVES,ITSUNLIKELYTHATYOUWOULDCHOOSETHESAMETYPEOFRESTAURANTINEACHINSTANCE,LETALONETHESAMEONEITSPOSSIBLE,TOO,THATIFYOULEFTTHEDECISIONTOANOTHERPERSONINTHEPARTY,HEORSHEWOULDMAKEADIFFERENTCHOKEIMPORTANTVERSUSDETERMINANTATTRIBUTESCONSUMERSUSUALLYMAKETHEIRCHOICESAMONGALTERNATIVESERVICEOFFERINGSONTHEBASISOFPERCEIVEDDIFFERENCESAMONGTHEMHOWEVER,THEATTRIBUTESTHATDISTINGUISHCOMPETINGSERVICESFROMONEANOTHERARENOTALWAYSTHEMOSTIMPORTANTONESFORINSTANCE,MANYTRAVELERSRANK“SAFETY“ASTHEIRNUMBERONECONSIDERATIONINAIRTRAVELTHEYMAYAVOIDTRAVELINGONUNKNOWNCARRIERSORONANAIRLINETHATHASAPOORSAFETYREPUTATION,BUTAFTERELIMINATINGSUCHALTERNATIVESFROMCONSIDERATION,ATRAVELERFLYINGONMAJORROUTESISSTILLLIKELYTOHAVESEVERALCHOICESOFCARRIERTHATAREPERCEIVEDASEQUALLYSAFEHENCE,SAFETYISNOTUSUALLYANATTRIBUTETHATINFLUENCESTHECUSTOMERSCHOICEATTHISPOINTDETERMINANTATTRIBUTESIE,THOSETHATACTUALLYDETERMINEBUYERSCHOICESAMONGCOMPETINGALTERNATIVESAREOFTENSOMEWAYDOWNTHELISTOFSERVICECHARACTERISTICSTHATAREIMPORTANTTOPURCHASERS,BUTTHEYARETHEATTRIBUTESONWHICHCUSTOMERSSEESIGNIFICANTDIFFERENCESAMONGCOMPETINGALTERNATIVESFOREXAMPLE,CONVENIENCEOFDEPARTUREANDARRIVALTIMES,AVAILABILITYOFFREQUENTFLYERMILESANDRELATEDLOYALTYPRIVILEGES,QUALITYOFFOODANDDRINKSSERVICEONBOARDTHEAIRCRAFT,ORTHEEASEOFMAKINGRESERVAHONS,MIGHTBEDETERMINANTCHARACTERISTICSFORBUSINESSTRAVELERSWHENSELECTINGANAIRLINEFORBUDGETCONSCIOUSVACATIONTRAVELERS,ONTHEOTHERHAND,PRICEMIGHTASSUMEPRIMARYIMPORTANCETHEMARKETINGRESEARCHERSTASK,OFCOURSE,ISTOSURVEYCUSTOMERSINTHETARGETSEGMENT,IDENTIFYTHERELATIVEIMPORTANCEOFVARIOUSATTRIBUTES,ANDTHENASKWHICHONESHAVEBEENDETERMINANTDURINGRECENTDECISIONSINVOLVINGACHOICEOFSERVICESUPPLIERSRESEARCHERSALSONEEDTOBEAWAREHOWWELLEACHCOMPETINGSERVICEISPERCEIVEDBYCUSTOMERSASPERFORMINGONTHESEATTRIBUTESFINDINGSFROMSUCHRESEARCHFORMTHENECESSARYBASISFORDEVELOPINGAPOSITIONINGORREPOSITIONINGCAMPAIGNESTABLISHINGSERVICELEVELSANDTIERSCREATINGAPOSITIONINGSTRATEGYREQUIRESMORETHANJUSTIDENTIFYINGTHOSEATTRIBUTESTHATAREIMPORTANTTOCUSTOMERSINTHETARGETSEGMENTYOUALSONEEDTOMAKEDECISIONSONSERVICELEVELS,THATIS,THELEVELOFPERFORMANCEYOUPLANTOOFFERONEACHATTRIBUTEESTABLISHINGSTANDARDSFORSUCHLEVELSISSIMPLERFORATTRIBUTESTHATAREEASILYQUANTIFIEDEXAMPLESINCLUDEVEHICLESPEEDASINEXPRESSTRAINSANDBUSES,HOURSOFSERVICE,ANDPHYSICALDIMENSIONS,SUCHASTHESIZEOFROOMSINHOTELSEACHOFTHESEVARIABLESISEASYTOUNDERSTANDANDMEASURETHEREFORE,ALLAREGENERALIZABLEHOWEVER,CHARACTERISTICSSUCHASTHEQUALITYOFPERSONALSERVICE,ORAHOTELSDEGREEOFLUXURY,AREMOREQUALITATIVEANDTHEREFOREARESUBJECTTOINDIVIDUALINTERPRETATIONTOCLARIFYTHESITUATIONANDFACILITATEBOTHSERVICEDESIGNANDPERFORMANCEMEASUREMENT,YOUNEEDTOOPERATIONALIZEEACHATTRIBUTEANDESTABLISHUNAMBIGUOUSSTANDARDSFORINSTANCE,IFCUSTOMERSSAYTHEYVALUEPHYSICALCOMFORT,WHATDOESTHATMEANFORAHOTELVERSUSANAIRLINE,BEYONDTHESIZEOFTHEROOMORTHESEATINAHOTELCONTEXT,DOESITREFERTOAMBIENTCONDITIONS,SUCHASTEMPERATUREANDABSENCEOFNOISEORTOVISIBLE,TANGIBLEELEMENTSSUCHASTHEBEDINPRACTICE,HOTELMANAGERSNEEDTOADDRESSBOTHAMBIENTCONDITIONSANDTANGIBLEELEMENTSYOUCANOFTENSEGMENTCUSTOMERSACCORDINGTOTHEIRWILLINGNESSTOTRADEOFFPRICEVERSUSSERVICELEVELACROSSABROADARRAYOFATTRIBUTESWITHINTHESERVICECONCEPTPRICEINSENSITIVECUSTOMERSAREWILLINGTOPAYARELATIVELYHIGHPRICETOOBTAINAHIGHLEVELOFSERVICEONEACHOFTHEATTRIBUTESTHATAREIMPORTANTTOTHEMBYCONTRAST,PRICESENS4TIVECUSTOMERSWILLLOOKFORANINEXPENSIVESERVICETHATOFFERSARELATIVELYLOWLEVELOFPERFORMANCEONMANYKEYATTRIBUTESALTHOUGHTHEREMAYBEOTHERS,SUCHASSAFETY,ONWHICHTHEYAREUNWILLINGTOCOMPROMISEINANUMBEROFSERVICEINDUSTRIES,THEMOSTEXPLICITFORMOFPOSITIONINGSTRATEGYISBASEDONOFFERINGSEVERALPRICEBASEDCLASSESOFSERVICECONCEPT,EACHBASEDONPACKAGINGADISTINCTIVELEVELOFSERVICEPERFORMANCEACROSSMANYATTRIBUTESTHISPHENOMENON,KNOWNASSERVICETIERING,ISPARTICULARLYEVIDENTININDUSTRIESSUCHASHOTELS,AIRLINES,CARRENTAL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