services an intro
TRANSCRIPT
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SERVICES-An Introduction
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Defining servicesActivities, benefits and satisfactions, which are offered
for sale or are provided in connection with the sale ofgoods
(American Marketing Association, Committee ofDefinitions 1960, p. 21).
Services include all economic activities whose outputis not a physical product or construction, is generally
consumed at the time it is produced, and providesadded value in forms (such as convenience,amusement, timeliness, comfort or health) that areessentially intangible concerns of its first purchaser
(Quinn, Baruch and Paquette, 1987).
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Services
Inseparability
Services cannotbe separated
from theirproviders
Perishability
Services cannotbe stored for
later sale or use
Intangibility
Services cannotbe seen, tasted,
felt, heard, orsmelled before
purchase
VariabilityQuality of
services dependson who providesthem and when,where, and how
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Services
Inseparability
Increaseproductivity of
providers
Perishability
Match supplyand demand
Intangibility
Use cues tomake it tangible
VariabilityStandardize
serviceproduction& delivery
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The Intangibility of
Services It refers to the total lack of perception of a
services characteristics before and (often) after
it is performed
It is the most radical characteristic of services,
where from the others emanate
MARKETING IMPLICATIONS
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The Inseparability of
Se
rvices It refers to the simultaneous production and
consumption of services
The production process of services has been called
servuction process (Eiglier and Langeard, 1977) The customer is present when the service is produced
The customer plays a role in the servuction and the
delivery process
Customers interact with one another during the
servuction process and may be affected (positively or
negatively) by this interaction
MARKETING IMPLICATIONS
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The Heterogeneity ofServices It refers to the potential for high variability in the
performance and the quality of services, caused by theinteraction between the service employee and thecustomer
The performance of the employees delivering one same
service varies:Between different hour zones of the day
From employee to employee
From service company to service company
Not all customers play their role at the service encounter ina homogenous and predictable way
Heterogeneity is particularly the case with labour intensiveand high-contact services
Heterogeneity is less visible in technology-based services
MARKETING IMPLICATIONS
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The Perishability of
Se
rvices It refers to the fact that services cannot be
saved, stored, resold or returned
Difficulties in synchronising supply and demand
for services
MARKETING IMPLICATIONS
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Towards a Strategic
Classification ofServices Services can be strategically classified according to the
following five dimensions (Lovelock, 1983)
What is the nature of the service act?
What type of relationship does the service organisationhave with its customers?
How much room is there for customisation and judgmentfrom the service provider?
What is the nature of demand and supply for the service?
How is the service delivered?
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The Service Industry
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THE PURCHASE PROCESS FOR SERVICES
Awareness of Need
Information Search
Evaluation of Alternative
Service Suppliers
Request Service from Chosen
Supplier
Service Delivery
Evaluation of Service
Performance
Future Intentions
PREPURCHASE
STAGE
SERVICE
ENCOUNTER
POST PURCHASE
STAGE
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POSSIBLE LEVELS OF CUSTOMER EXPECTATIONS
Ideal expectations or desires
Normative should
expectations
Experience based norms
Acceptable expectations
Minimum tolerable expectations
HIGH
LOW
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ustomer ExpectationZone ofTolerance
Past experience & Reference Group
Desired Service
(ideal state)
Zone of Tolerance
Adequate Service
(threshold level)
Service Providers
Communications
Perceived Service
Alternatives
Predicted Service
Personal needs
Ideal Service Image
Decision Criteria
Competition
Uniqueness of Service
Situation
Situational Factors
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Decision Criteria &
Zone of toleranceMin
Zone of
Tolerance
Max
Low High
Criticality of Decision Criteria
Zone of Tolerance
varies inverselyacross Decision
criteria depending
on criticality of the
criteria
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Customers may find itdifficult to evaluate services
Search Attributes
Experience Attributes
Credence Attributes
Easy to
Evaluate
Difficult to
Evaluate
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What Customers Want
GOOD
PEOPLE
Friendly, helpful, courteous
Empathetic
Knowledgeable, accurate, thorough
Resourceful, empowered
Able to recommend solutions
Able to anticipate needs
Efficient
Trustworthy, authentic
Reliable
Responsible
Appropriate appearance & demeanor
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What Customers Want
GOOD
OFFERING
Good selection
Good quality
In stock
Available demos
Clear description & pricing
Competitive prices
Financing, deferred payments
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What Customers Want
CONVENIENCE
Convenient locations
Long hours
Available help, fast service
Signage that facilitates fast service
Fast checkout
Shipping/ delivery
Installation
Phone/ web support
On site repair
Hassle free returns
Quick resolution of problems
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What Customers Want
GOOD
ENVIRONMENT
Clean
Organized
Safe
Low pressure
Energy level appropriate toclientele