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Managing Services. What Services have you consumed today?

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Presentation on theme: "Managing Services. What Services have you consumed today?"— Presentation transcript:

1 Managing Services

2 What Services have you consumed today?

3 Service Definitions Services are deeds, processes, and performances. Valarie Zeithaml & Mary Jo Bitner A service is a time-perishable, intangible experience performed for a customer acting in the role of a co- producer. James Fitzsimmons 1-3

4 Definition of Service Firms Service enterprises are organizations that facilitate the production and distribution of goods, support other firms in meeting their goals, and add value to our personal lives. James Fitzsimmons 1-4

5 Examples of Service Industries Health Care hospital, medical practice, dentistry, eye care 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

6 Why Service Management?

7 Services dominate U.S. and worldwide economies Service as a business imperative in goods- focused businesses Deregulated industries and professional service needs Service management is different Service leads to profits

8 Examples of Goods Companies that are Expanding into Services Boeing

9 Goods Vs. Services

10 Characteristics of Services Compared to Goods Intangibility Perishability Simultaneous Production and Consumption Heterogeneity

11 What do you see as the relationship between service and retail?

12 Marketing Mix

13 Traditional Marketing Mix Elements an organization controls that can be used to satisfy or communicate with customers: Product Price Place Promotion 1-13

14 Expanded Mix for Services – The 7 Ps Product Price Place Promotion People Physical Evidence Process 1-14

15 Expanded Mix for Services People All human actors who play a part in service delivery and thus influence the buyers perceptions: namely, the firms personnel, the customer, and other customers in the service environment. 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. 1-15

16 Father of the Bride hiring a wedding planner 2wpY What additional elements of the marketing mix for services do you see here?

17 Expanded Mix for Services – The 7 Ps Product Price Place Promotion People Physical Evidence Process 1-17

18 The GAPS Model of Service Quality






24 Gaps Model of Service Quality Customer Gap: difference between customer expectations and perceptions Provider Gap 1 (Listening Gap): not knowing what customers expect Provider Gap 2 (Service Design & Standards Gap): not having the right service designs and standards Provider Gap 3 (Service Performance Gap): not delivering to service standards Provider Gap 4 (Communication Gap): not matching performance to promises 2-24


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