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11Designing and Managing
Services
Chapter Questions
How are services defined and classified?How are services marketed and how can service quality be improved?How do service marketers create strong brands?How can goods marketers improve customer support services?
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What is a Service?A service is any act of performance that one
party can offer another, that is essentially intangible and does not result in the
ownership of anything; its production may or may not be tied to a physical product.
Services are Everywhere
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GovernmentPrivate non-profitBusinessRetailManufacturing
Categories of Service Mix
Pure tangible goodPure tangible good
Good with accompanying services
Good with accompanying services
HybridHybrid
Service with accompanying goods
Service with accompanying goods
Pure servicePure service
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Service Distinctions
Equipment-based or people-basedService processesClient’s presence required or notPersonal needs or business needsObjectives and ownership
Continuum of Evaluation for Different Types of Products
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Distinctive Characteristics of Services
Intangibility
Inseparability
Variability
Perishability
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Physical Evidence and Presentation
Place
People
Equipment
Communication material
Symbols
Price11-9
How to Increase Quality Control
Invest in good hiring and training procedures
Monitor customer satisfaction
Standardize the service-performance process
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Increasing Quality Control:An Overnight Hotel Stay
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Matching Demand and Supply
Demand sideDifferential pricingNon-peak demandComplementary servicesReservation systems
Supply sidePart-time employeesPeak-time efficiencyIncreased consumer participationShared services
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Dimensions of Brand Experience
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Root Causes of Customer Failure
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Solutions to Customer Failures
Redesign processes and redefine customer roles to simplify service encountersIncorporate the right technology to aid employees and customersCreate high-performance customers by enhancing their role clarity, motivation, and abilityEncourage customer citizenship where customers help customers
Holistic Marketing for Services
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Factors Leading to Customer Switching BehaviorPricingInconvenienceCore Service FailureService Encounter FailuresResponse to Service FailureCompetitionEthical ProblemsInvoluntary Switching
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New Service Realities
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Gaps that Cause Unsuccessful Service Delivery
Gap between consumer expectation and management perceptionGap between management perception and service-quality specificationsGap between service-quality specifications and service deliveryGap between service delivery and external communicationsGap between perceived service and expected service
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Service-Quality Model
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Best Practices
Strategic ConceptTop-Management CommitmentHigh StandardsSelf-Service TechnologiesMonitoring SystemsSatisfying Customer ComplaintsSatisfying Employees
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Managing Service Brands:Differentiating Services
Offering more than the primary service packageAdd secondary features to the primary service packageLeverage human interaction by training and empowering employees to engage the consumerOffering a very wide assortment of services including cross-selling efforts
Developing Brand Strategies for Services
Choosing Brand Elements
Establishing ImageDimensions
Devising BrandingStrategy
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Determinants of Service Quality
ReliabilityResponsivenessAssuranceEmpathyTangibles
Importance-Performance Analysis
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Improving Service Quality
ListeningReliabilityBasic serviceService designRecovery
Surprising customersFair playTeamworkEmployee researchServant leadership
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Customer Worries
Reliability and Failure frequency
Downtime duration
Out-of-pocket costs
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