Service Marketing Lecture of Chapter 1 (4th Edition)
Service Marketing Lecture of Chapter 1 (4th Edition)
Introduction to Services
Introduction to Services
What are services? Why services marketing? Service and Technology Characteristics of Services Compared to Goods Services Marketing Mix Staying Focused on the Customer
It can occur on site, or via telephone, or via internet and typically there is no charge for customer service.
Federal Express markets and delivers services, but it also provides a high level of customer service.
Figure 1.1
Source: Inside Sams $100 Billion Growth Machine, by David Kirkpatrick, Fortune, June 14, 2004, p 86.
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
The concept is: most of the services are not strictly confined to intangibility although intangibility is the key determinant of service rather the extent of intangibility varies in different types of services and it is also true with the goods as well regarding tangibility.
Very few products are purely intangible or tangible. Services tend to be more intangible than manufactured products and manufactured products tend to be more tangible than services.
Figure 1.2
Tangibility Spectrum
Salt
Intangible Dominant
Tangible Dominant
Intangibility
Heterogeneity
Perishability
Table 1.2
Source: A. Parasuraman, V.A. Zeithaml, and L. L. Berry, A Conceptual Model of Service Quality and Its Implications for Future Research, Journal of Marketing 49 (Fall 1985), pp. 4150.
Implications of Intangibility
Services cannot be inventoried
Services cannot be easily patented
Implications of Heterogeneity
Service delivery and customer satisfaction depend on employee and customer actions
Service quality depends on many uncontrollable factors There is no sure knowledge that the service delivered matches what was planned and promoted
Implications of Perishability
It is difficult to synchronize supply and demand with services
Services cannot be returned or resold
Physical Evidence
The environment in which the service is delivered and where the firm and customer interact, and any tangible components that facilitate performance or communication of the service.
Process
The actual procedures, mechanisms, and flow of activities by which the service is deliveredthe service delivery and operating systems.
Table 1.3
Table 1.1
Source: D. G. Mick and S. Fournier, Paradoxes of Technology: Consumer Cognizance, Emotions, and Coping Strategies, Journal of Consumer Research 25 (September 1998), pp. 12347.