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Designing and Managing Services Marketing Management, 13 th ed 13.

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Presentation on theme: "Designing and Managing Services Marketing Management, 13 th ed 13."— Presentation transcript:

1 Designing and Managing Services Marketing Management, 13 th ed 13

2 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 13-2 Chapter Questions How do we define and classify services and how do they differ from goods? How do we market services? How can we improve service quality? How do services marketers create strong brands? How can goods marketers improve customer support services?

3 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 13-3 What is a Service? A service is any act of performance that one party can offer another that is essentially intangible and does not result in the ownership of anything; its production may or may not be tied to a physical product.

4 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 13-4 Service Sectors Government Private nonprofit Business Manufacturing Retail

5 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 13-5 Categories of Service Mix Pure tangible good Good with accompanying services Hybrid Service with accompany goods Pure service

6 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 13-6 Service Distinctions Equipment-based or people-based Service processes Client’s presence required or not Personal needs or business needs Objectives and ownership

7 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 13-7 Distinctive Characteristics of Services Intangibility Inseparability Variability Perishability

8 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 13-8 Physical Evidence and Presentation Place People Equipment Communication material Symbols Price

9 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 13-9 How to Increase Quality Control Invest in good hiring and training procedures Standardize the service-performance process Monitor customer satisfaction

10 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall Matching Demand and Supply Demand side Differential pricing Nonpeak demand Complementary services Reservation systems Supply side Part-time employees Peak-time efficiency Increased consumer participation Shared services Facilities for future expansion

11 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall Improving Service Quality Listening Reliability Basic service Service design Recovery Surprising customers Fair play Teamwork Employee research Servant leadership

12 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall Solutions to Customer Failures Redesign processes and redefine customer roles to simplify service encounters Incorporate the right technology to aid employees and customers Create high-performance customers by enhancing their role clarity, motivation, and ability Encourage customer citizenship where customers help customers

13 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall Table 13.1 Factors Leading to Customer Switching Behavior Pricing Inconvenience Core Service Failure Service Encounter Failures Response to Service Failure Competition Ethical Problems Involuntary Switching

14 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall Gaps that Cause Unsuccessful Service Delivery Gap between consumer expectation and management perception Gap between management perception and service-quality specifications Gap between service-quality specifications and service delivery Gap between service delivery and external communications Gap between perceived service and expected service

15 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall Determinants of Service Quality Reliability Responsiveness Assurance Empathy Tangibles

16 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall Best Practices Strategic Concept Top-Management Commitment High Standards Self-Service Technologies Monitoring Systems Satisfying Customer Complaints Satisfying Employees

17 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall Developing Brand Strategies for Services Choosing brand elements Establishing image dimensions Devising branding strategy

18 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall Customer Worries Failure frequency Downtime Out-of-pocket costs

19 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall Table 13.4 Top Customer Service Providers USAA Four Seasons Hotels Cadillac Nordstrom Wegman Food Markets Edward Jones Lexus UPS Enterprise Rent-a- Car Starbucks Ritz-Carlton Amica Insurance Southwest Airlines


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