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Services Strategy. Characteristics of Services ä Intangibility ä Inseparability ä Perishability/Fluctuating Demand ä Heterogeneity.

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Presentation on theme: "Services Strategy. Characteristics of Services ä Intangibility ä Inseparability ä Perishability/Fluctuating Demand ä Heterogeneity."— Presentation transcript:

1 Services Strategy

2 Characteristics of Services ä Intangibility ä Inseparability ä Perishability/Fluctuating Demand ä Heterogeneity

3 Defining Service Quality The Five Gap Model: Gap 1: Consumer expectations -- management perceptions of consumer expectations. a. extent of marketing research orientation (-) b. extent and quality of upward communication (-) c. levels of management (+)

4 Gap Model ( continued ) Gap 2:Management perceptions of consumer expectations -- the firm's service quality specifications. a. management commitment to service quality (-) b. setting of goals related to service quality (-) c. task standardization (-) d. perception of feasibility for meeting customer expectations (-)

5 Gap Model ( continued ) Gap 3:Service quality specifications -- actual service delivered. a. extent of teamwork perceived by employees (- ) b. employee job fit (-) c. technology job fit (-) d. perceived control experienced by customer contact personnel (-) e. extent to which behavioral control systems are used to supplement output control systems (- ) f. extent of customer contact employee role conflict and role ambiguity (+)

6 Gap Model ( continued ) Gap 4:Service delivery -- what is communicated to customer about the service. a. extent of horizontal communication (-) b. propensity to over-promise (+)

7 Gap Model ( continued ) Gap 5:Perceived service -- expected service. This gap defines service quality and is affected by gaps 1-4.

8 Determinants of Service Quality ä Reliability ä Responsiveness ä Competence ä Access ä Courtesy ä Communication ä Credibility ä Security ä Understanding ä Tangibles

9 Service Evaluation Model

10 Enhance service quality through internal marketing

11 Considerations in developing a service marketing strategy ä Marketing should occur at all levels ä Hire and maintain high-quality personnel ä Consider marketing to existing customers ä Quickly resolve problems in providing the service ä Think high technology ä Brand your service


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