Chapter 13: Designing and Managing Services

Prepared by: M Wahyu Gamal (B41 – 122121077)

Chapter Questions

How do we define and classify services and how do they differ from goods?

How do we market services? How can we improve service quality? How do services marketers create strong brands? How can goods marketers improve customer support services?

Service Sectors

GovernmentPrivate

nonprofit

ManufacturingBusiness Retail

Categories of Service Mix

Pure tangible goodGood with accompanying

servicesHybrid

Service with accompanying goods

Pure service

Figure 13.2 Continuum of Evaluation for Different Types of Products

Distinctive Characteristics of Services

Intangibility

Inseparability

Variability

Perishability

Physical Evidence and PresentationPlace

People

Equipment

Communication material

Symbols

Price

How to Increase Quality Control

Invest in good hiring and training procedures

Monitor customer satisfaction

Standardize the service-performance process

Matching Demand and SupplyDemand side Differential

pricing Nonpeak

demand Complementary

services Reservation

systems

Supply side Part-time

employees Peak-time

efficiency Increased

consumer participation

Shared services Facilities for

future expansion

Improving Service Quality Listening Reliability Basic service Service design Recovery

Surprising customers

Fair play Teamwork Employee

research Servant

leadership

Figure 13.4 Root Causes of Customer Failure

Solutions to Customer Failures

Redesign processes and redefine customer roles to simplify service encounters

Incorporate the right technology to aid employees and customers Create high-performance customers by enhancing their role clarity,

motivation, and ability Encourage customer citizenship where customers help customers

Figure 13.5 Three Types of Marketing in Service Industries

Figure 13.6 Service-Quality Model

Gaps that Cause Unsuccessful Service Delivery Gap between consumer expectation and management perception Gap between management perception and service-quality

specifications Gap between service-quality specifications and service delivery Gap between service delivery and external communications Gap between perceived service and expected service

Determinants of Service QualityReliability

Responsiveness

Assurance

Empathy

Tangibles

Developing Brand Strategies for Services

Choosing Brand Elements

Establishing ImageDimensions

Devising BrandingStrategy

Customer Worries

Failure frequency

Downtime

Out-of-pocket costs

Conclusion

Services are intangible, inseparable, variable, and perishable Service marketing must be done holistically: It calls not only for

external marketing but also for internal marketing Customers expectations play a critical role in their service experiences

and evaluations. Companies must manage service quality by understanding the effects of each service encounter

To brand a service organization effectively, the company must differentiate its brand through primary and secondary service features and develop appropriate brand strategies

To provide the best customer support service for goods companies, a manufacturer must identify the services customers value most and their relative importance

Thank you