SERVICE MANAGEMENTSERVICE MANAGEMENTMGM 4204MGM 4204

Dr Mass Hareeza AliDr Mass Hareeza AliDepartment of Marketing & ManagementDepartment of Marketing & Management

Faculty of Economics & ManagementFaculty of Economics & ManagementUniversiti Putra MalaysiaUniversiti Putra Malaysiamass@econ.upm.edu.mymass@econ.upm.edu.my

Def. ServiceDef. Service

Services are deeds, Services are deeds, processes, and performancesprocesses, and performances Services & technologyServices & technologyCustomers & employees Customers & employees (support in making more (support in making more effective and efficient in effective and efficient in delivering service)delivering service)

Goods Vs Services MarketingGoods Vs Services Marketing

Intangibility – service are Intangibility – service are performance or actions; cannot be performance or actions; cannot be seen, felt, tasted, or touchedseen, felt, tasted, or touched- advertising and promotional - advertising and promotional materialmaterial

Heterogeneity – no two services will Heterogeneity – no two services will be precisely alike; each will have be precisely alike; each will have unique demands or experienceunique demands or experience

Simultaneous Production and ConsumptionSimultaneous Production and Consumption

Most services are sold first and then Most services are sold first and then produced and consumed produced and consumed simultaneously; goods are produced simultaneously; goods are produced first, then sold and consumed.first, then sold and consumed.

Customer: Affect each others’ Customer: Affect each others’ experiencesexperiences

Continue…Continue…

• Perishability – service cannot be saved, Perishability – service cannot be saved, stored, resold, or returnedstored, resold, or returned- must be creative; eg hair cut- must be creative; eg hair cut

Service Marketing MixService Marketing Mix

Traditional Marketing Mix: 4 p’s- Traditional Marketing Mix: 4 p’s- product, price, placeproduct, price, place, and , and promotionpromotion..

Expanded Mix: Additional 4 p’s – Expanded Mix: Additional 4 p’s – includes people, physical evidence includes people, physical evidence and process.and process.

Staying focused on CustomerStaying focused on Customer

Gaps Model of Service QualityGaps Model of Service Quality The customer Gap: Expected service The customer Gap: Expected service

– perceived service– perceived service Stages in Consumer decision making Stages in Consumer decision making

and evaluation of services:and evaluation of services:* Need recognition – information * Need recognition – information search –evaluation of alternatives – search –evaluation of alternatives – purchase & consumption – purchase & consumption – postpurchase evaluationpostpurchase evaluation

The role of Culture in ServicesThe role of Culture in Services

Effects on the ways customers evaluate Effects on the ways customers evaluate and use servicesand use services

Influences how companies and their Influences how companies and their service employees interact with customersservice employees interact with customers

Major area: language (verbal vs Major area: language (verbal vs nonverbal), values and attitudes, manners, nonverbal), values and attitudes, manners, material culture, aesthetics (culture ideas material culture, aesthetics (culture ideas abt beauty & good taste), educational & abt beauty & good taste), educational & social institutionssocial institutions

Customer ExpectationsCustomer Expectations

Desired service: the level of service Desired service: the level of service the customer hope to receivethe customer hope to receive

Adequate service: the level of service Adequate service: the level of service the customer will acceptthe customer will accept

Factors influence customer expectations of Factors influence customer expectations of serviceservice

Sources of desired service expectations: Sources of desired service expectations: personal needs, derived service personal needs, derived service expectations, personal service philosophyexpectations, personal service philosophy

Sources of adequate service expectations; Sources of adequate service expectations; transitory service intensifiers, perceived transitory service intensifiers, perceived service alternatives, self-perceived service service alternatives, self-perceived service role and situational factors, predicted role and situational factors, predicted serviceservice

Internal/external factors influence desired Internal/external factors influence desired service & predicted service expectationsservice & predicted service expectations

Explicit service promises: personal Explicit service promises: personal (eg salespeople)/nonpersonal (eg (eg salespeople)/nonpersonal (eg advertising, brochures) statementsadvertising, brochures) statements

Implicit service promises: quality Implicit service promises: quality cues-prices and tangibles associated cues-prices and tangibles associated with servicewith service

Word of mouthWord of mouth Past experiencePast experience

What determines Customer satisfactionWhat determines Customer satisfaction

Product and service featuresProduct and service features Consumer emotionsConsumer emotions Attributions for service success or Attributions for service success or

failurefailure Perceptions of equity or fairnessPerceptions of equity or fairness Other consumers, family members Other consumers, family members

and coworkersand coworkers

Service quality dimensionsService quality dimensions Reliability: accurate and dependablyReliability: accurate and dependably Responsiveness: prompt serviceResponsiveness: prompt service Assurance: trust and confidentAssurance: trust and confident Empathy: caring, attention to Empathy: caring, attention to

customerscustomers Tangibles: appearance of physical Tangibles: appearance of physical

facilities, equipment, writing materialfacilities, equipment, writing material

Types of service encountersTypes of service encounters Remote encounters: ATMRemote encounters: ATM Phone encounters: Insurance Comp.Phone encounters: Insurance Comp. Face to face encounters: theme Face to face encounters: theme

parksparks

Service research programService research program

Qualitative and quantitative research Qualitative and quantitative research Both perception and expectations of Both perception and expectations of

customerscustomers Balances the cost of research and the Balances the cost of research and the

value of informationvalue of information Statistical validity when necessaryStatistical validity when necessary Measures priorities or importanceMeasures priorities or importance Appropriate frequencyAppropriate frequency Loyalty or behavioral intentionsLoyalty or behavioral intentions

SERVQUAL SurveySERVQUAL Survey

Relationship surveys: customers with Relationship surveys: customers with the company including service, the company including service, product, and price.product, and price.

AssignmentAssignment Meeting datelineMeeting dateline

Take home quizTake home quiz