1. McGraw-Hill/Irwin Copyright © 2009 by The McGraw-Hill Companies, Inc. All Rights Reserved.

2. THE UNIQENESS OF SERVICES THE FOUR I’S OF SERVICES LO1  Services Services  Four I’s of Services Four I’s of Services Intangibility Inseparability Inconsistency Inventory  Idle Production Capacity Idle Production Capacity 12-2

3. FIGURE 12-A FIGURE 12-A The 4 I’s of services 12-3

4. THE UNIQENESS OF SERVICES THE CONTINUUM & CLASSIFICATION OF SERVICES LO2  Service Continuum Service Continuum  Classifying Services Delivery by People or Equipment Profit or Nonprofit Organizations Government Sponsored 12-4

5. FIGURE 12-3 FIGURE 12-3 The service continuum shows how offerings can vary in their balance of goods and services 12-5

6. FIGURE 12-4 FIGURE 12-4 Services can be classified as equipment-based or people-based 12-6

7. HOW CONSUMERS PURCHASE SERVICES LO3  The Purchase Process Search Properties Experience Properties Credence Properties 12-7

8. FIGURE 12-5 FIGURE 12-5 Consumers use search, experience, and credence properties to evaluate services 12-8

9. HOW CONSUMERS PURCHASE SERVICES LO3  Assessing Service Quality Gap Analysis Monitoring Service Failure 12-9

10. FIGURE 12-6 FIGURE 12-6 The five dimensions of service quality 12-10

11. HOW CONSUMERS PURCHASE SERVICES LO4  Customer Contact and Relationship Management Customer Contact Audit Service Encounters A Customer’s Car Rental Activities Relationship Marketing 12-11

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

13. MANAGING THE MARKETING OF SERVICES LO5  Internal Marketing Internal Marketing  Customer Experience Management (CEM) Customer Experience Management (CEM) 12-13

14. MANAGING THE MARKETING OF SERVICES LO5 Exclusivity  Product (Service)  Patent Branding Capacity Management  Load Factor 12-14

15. FIGURE 12-8 FIGURE 12-8 Different prices and packages help match demand to capacity 12-15

16. MANAGING THE MARKETING OF SERVICES LO5  Price  Off-Peak Pricing Off-Peak Pricing Affects Consumer Perceptions Is Used in Capacity Management 12-16

17. MANAGING THE MARKETING OF SERVICES LO5  Place (Distribution) Multiple Locations Electronic  Promotion 12-17