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Service Defined bInstrumental activity bFor consumption bConsumer participation bNo ownership
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Chapter ElevenChapter Eleven
Strategies for Services and Strategies for Services and Relationship MarketingRelationship Marketing
ObjectivesObjectives
Define “services”Explain the characteristics of servicesUnderstand service demand managementUnderstand standardization & customizationExplain importance of servicesDiscuss relationship buildingReview Internet’s impact on customer service
Service DefinedService Defined
Instrumental activityFor consumptionConsumer
participationNo ownership
Service Characteristics Service Characteristics & Strategies: & Strategies: IntangibilityIntangibility
Cannot see or feelCannot smell, hear,
or taste
Stress symbolic clues (Mr. Goodwrench)
Associate tangible symbol with service
Tangible cues like membership cards“You’re in good
hands with Allstate.”
Service Characteristics Service Characteristics & Strategies: & Strategies: PerishabilityPerishability
Cannot be storedLost sale = lost
income
Demand managementForecastingSupply management
Pricing adjustments
Service Characteristics Service Characteristics & Strategies: & Strategies: InseparabilityInseparability
Tangible productsTangible products
ProductionProduction SaleSale ConsumptionConsumption
TimeTime
ProductionProductionSaleSale
ConsumptionConsumption
Intangible productsIntangible products Production orientation
Personnel management
Service Characteristics Service Characteristics & Strategies: Variability& Strategies: Variability
Provided by peopleInherent variance
StandardizationPersonnel selectionTrainingAutomation
Customization
Total Service ProductTotal Service Product
Participant demeanorPhysical evidenceDelivery process
•Clean new cars•Airport transportation•Uniformed employees•Special membership cards•Easy check in & check out•Special use vehicles (vans, convertibles, sports cars, sport utility cars, etc.)
Gap AnalysisGap Analysis
Expected service
Management perceptionsof consumer expectations
Mar
kete
rM
arke
ter
Con
sum
erC
onsu
mer
Gap 1Service delivery (including
pre- and post-contacts)
Gap 3Translation of perceptions
to service-quality specificationsGap 2
Gap 5 Perceived service
Externalcommuni-cations to
consumersGap 4
Personal needs Past experienceWord-of-mouth
communications
Determinants of Service Determinants of Service QualityQuality
AccessAccessCommunicationCommunicationCompetenceCompetenceCourtesyCourtesyReliabilityReliabilityCredibilityCredibility
ServiceAward
Relationship MarketingRelationship Marketing
Structural Relations
FinancialRelations
SocialRelations
How the Internet can How the Internet can Improve Customer Improve Customer
ServiceServiceAutomationInteraction
FAQ’se-mail
SpeedCostsPersonalization
Successful Successful RelationshipsRelationships
Relationship commitmentLong-term vs. short-
term orientedPrice not only factor
TrustReliabilityIntegrity
Internal MarketingInternal Marketing
Employee directed P.R.
RecognitionEmpowerment
Employeeof the Month
ReviewReview
Define “services”Explain the characteristics of servicesUnderstand service demand managementUnderstand standardization & customizationExplain importance of servicesDiscuss relationship buildingReview Internet’s impact on customer service