Services are Products too Service and Branding
What are we buying?
Services are… Intangible – Even though they have “tangibility” Inseparable – Produced and consumed at same time; sometimes even sold Perishable – Cannot be stored Variable
How we measure good service? Reliable – Dependable, accurate, consistent Responsive – prompt Assurance – Knowledge and courtesy of employees Empathy – Caring, attention Tangibles – Physical aspects
Gap Model 5 Service gaps – Knowledge What customer wants and what management thinks they want – Standards What management thinks they want and quality specs – Delivery Gap between quality specs and service provided – Communication What company provides and what customers were told it provides – Customer Service they receive and what they want
The 4Ps of Service Product – Core and supplemental services – Customized or standardized Place – Convenience, location, number of outlets Promotion – Stress tangible cues – Endorsers – Image – Postpurchase Price – Revenue – maximize revenue – Operations – maximize cost efficiency – Patronage – maximize number of customers
Other Services Non Profits – PSAs – Cause marketing – Pricing decisions vary
Service Failure Listen to customer Stay in control Find a fair solution Quickly resolve disputes Examples – Best Buy Best Buy
Branding 101 Reputation Customer Service A Promise Price Feeling Attitude Values – what the brand stands for
Examples of strong brands
Brand Equity
Service Can make or kill a brand Strive for good service Quick recoveries The customer is always right 5 Easy Pieces