2. ©2000 Prentice Hall ObjectivesObjectives ä Service Definitions & Classifications ä How Services Differ Goods ä Improving Service Differentiation, Quality, & Productivity ä Improving Customer Support Services

3. ©2000 Prentice Hall Categories of Service Mix PureService TangibleGoodw/ServicesMajorService w/ Goods Hybrid PureTangibleGood

4. ©2000 Prentice Hall Services Inseparability Services cannot be separated from their providers Inseparability Services cannot be separated from their providers Perishability Services cannot be stored for later sale or use Perishability Services cannot be stored for later sale or use Intangibility Services cannot be seen, tasted, felt, heard, or smelled before purchase Intangibility Services cannot be seen, tasted, felt, heard, or smelled before purchase Variability Quality of services depends on who provides them and when, where, and how Variability Quality of services depends on who provides them and when, where, and how

5. ©2000 Prentice Hall Services Inseparability Increase productivity of providers Inseparability Increase productivity of providers Perishability Match supply and demand Perishability Match supply and demand Intangibility Use cues to make it tangible Intangibility Use cues to make it tangible Variability Standardize service production & delivery Variability Standardize service production & delivery

6. ©2000 Prentice Hall Three Types of Marketing in Service Industries Internal marketing CompanyCustomers External marketing Employees Interactive marketing Cleaning/ maintenance services Financial/ banking services Restaurant industry

7. ©2000 Prentice Hall Service Differentiation Offer Delivery Image

8. ©2000 Prentice Hall Service-Quality Model Expected service Management perceptions of consumer expectations Marketer Consumer Gap 1 Service delivery (including pre- and post-contacts) Gap 3 Translation of perceptions to service-quality specifications Gap 2 Gap 5 Perceived service External communi- cations to consumers Gap 4 Personal needs Past experience Word-of-mouth communications

9. ©2000 Prentice Hall Determinants of Service Quality ä Reliability ä Responsiveness ä Assurance ä Empathy ä Tangibles

10. ©2000 Prentice Hall Service Excellence ä Strategic Concept ä Top-Management Commitment ä High Standards ä Monitoring Systems ä Satisfying Customer Complaints ä Satisfying Both Employees & Customers ä Managing Productivity

11. ©2000 Prentice Hall Importance-Performance Analysis A. Concentrate hereB. Keep up the good work D. Possible overkillC. Low priority Extremely important Slightly important Excellent performance Fair performance 1 2 9 11 13 12 14 3 4 5 6 7 8 10 # = Attributes

12. ©2000 Prentice Hall Complaint Resolution ä Hiring Criteria & Training for Employees ä Develop Guidelines for Fairness ä Remove Complaint Barriers ä Analyze Types & Sources of Complaints