Copyright © 2015 McGraw-Hill Education. All rights reserved Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

Describe four unique elements of services. LEARNING OBJECTIVES (LO) AFTER READING CHAPTER 12, YOU SHOULD BE ABLE TO: Describe four unique elements of services. LO 12-1 Recognize how services differ and how they can be classified. LO 12-2 Explain how consumers purchase and evaluate services. LO 12-3 Develop a customer contact audit to identify service advantages. LO 12-4 12-2

Explain the role of the seven Ps in the services marketing mix. LEARNING OBJECTIVES (LO) AFTER READING CHAPTER 12, YOU SHOULD BE ABLE TO: LO 12-5 Explain the role of the seven Ps in the services marketing mix. Discuss the important roles of internal marketing and customer experience management in service organizations. LO 12-6 12-3

NEW SERVICES CAN HELP YOU BECOME PART OF THE SHARING ECONOMY 12-4

FIGURE 12-1 Services are a larger part of the U.S. GDP than goods 12-5

THE UNIQUENESS OF SERVICES THE FOUR I’S OF SERVICES LO 12-1 Services Four I’s of Services Intangibility Inconsistency 12-6

THE UNIQUENESS OF SERVICES THE FOUR I’S OF SERVICES LO 12-1 Four I’s of Services Inseparability Self-Service Technologies Inventory Idle Production Capacity 12-7

FIGURE 12-2 Inventory carrying costs of services depend on the cost of employees and equipment 12-8

Service Continuum Classifying Services THE UNIQUENESS OF SERVICES THE CONTINUUM AND CLASSIFICATION OF SERVICES LO 12-2 Service Continuum Classifying Services Delivery by People or Equipment For-Profit or Nonprofit Organizations Government Sponsored 12-9

FIGURE 12-3 The service continuum shows how offerings can vary in their balance of products and services 12-10

FIGURE 12-4 Services can be classified as equipment-based or people-based 12-11

MARKETING MATTERS Social Marketing is a Must for Nonprofits LO 12-2 12-12

HOW CONSUMERS PURCHASE SERVICES THE PURCHASE PROCESS LO 12-3 Search Properties Experience Properties Credence Properties 12-13

FIGURE 12-5 Consumers use search, experience, and credence properties to evaluate services 12-14

HOW CONSUMERS PURCHASE SERVICES ASSESSING SERVICE QUALITY LO 12-3 Gap Analysis Dimensions of Service Quality Service Failures 12-15

FIGURE 12-6 The five dimensions of service quality 12-16

MARKETING INSITE How Can You Learn about Service Failures MARKETING INSITE How Can You Learn about Service Failures? Media Monitoring! LO 12-3 Google Blogs Technorati ReputationDefender 12-17

Customer Contact Audit HOW CONSUMERS PURCHASE SERVICES CUSTOMER CONTACT AND RELATIONSHIP MARKETING LO 12-4 Service Encounters Customer Contact Audit Service Blueprint A Customer’s Car Rental Activities Relationship Marketing 12-18

FIGURE 12-7 Customer contact audit for a car rental agency (green boxes = customer activity; orange boxes = employee activity) 12-19

MANAGING THE MARKETING OF SERVICES THE SEVEN Ps OF SERVICES LO 12-5 Seven Ps of Services Marketing Product (Service) Branding Price Off-Peak Pricing 12-20

MANAGING THE MARKETING OF SERVICES THE SEVEN Ps OF SERVICES LO 12-5 Place (Distribution) Promotion Publicity Public Service Announcement (PSA) 12-21

MANAGING THE MARKETING OF SERVICES THE SEVEN Ps OF SERVICES LO 12-5 People Internal Marketing Customer Experience Management (CEM) Physical Environment Process Capacity Management 12-22

FIGURE 12-8 Different prices and packages help match demand to capacity 12-23

USING MARKETING DASHBOARDS Are JetBlue’s Flights Profitably Loaded? Airline Operating Income (Loss) per Available Seat Flown One Mile (ASM) 12-24

Technological Advances SERVICES IN THE FUTURE LO 12-6 Technological Advances Mobility Personalization Convergence Sustainability 12-25

LA GALAXY: WHERE SPORTS MARKETING IS A KICK! VIDEO CASE 12 12-26