Services an Intro

8/3/2019 Services an Intro

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SERVICES-An Introduction


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Defining servicesActivities, benefits and satisfactions, which are offered

for sale or are provided in connection with the sale ofgoods

(American Marketing Association, Committee ofDefinitions 1960, p. 21).

Services include all economic activities whose outputis not a physical product or construction, is generally

consumed at the time it is produced, and providesadded value in forms (such as convenience,amusement, timeliness, comfort or health) that areessentially intangible concerns of its first purchaser

(Quinn, Baruch and Paquette, 1987).


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Services

Inseparability

Services cannotbe separated

from theirproviders

Perishability

Services cannotbe stored for

later sale or use

Intangibility

Services cannotbe seen, tasted,

felt, heard, orsmelled before

purchase

VariabilityQuality of

services dependson who providesthem and when,where, and how


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Services

Inseparability

Increaseproductivity of

providers

Perishability

Match supplyand demand

Intangibility

Use cues tomake it tangible

VariabilityStandardize

serviceproduction& delivery


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The Intangibility of

Services It refers to the total lack of perception of a

services characteristics before and (often) after

it is performed

It is the most radical characteristic of services,

where from the others emanate

MARKETING IMPLICATIONS


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The Inseparability of

Se

rvices It refers to the simultaneous production and

consumption of services

The production process of services has been called

servuction process (Eiglier and Langeard, 1977) The customer is present when the service is produced

The customer plays a role in the servuction and the

delivery process

Customers interact with one another during the

servuction process and may be affected (positively or

negatively) by this interaction



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The Heterogeneity ofServices It refers to the potential for high variability in the

performance and the quality of services, caused by theinteraction between the service employee and thecustomer

The performance of the employees delivering one same

service varies:Between different hour zones of the day

From employee to employee

From service company to service company

Not all customers play their role at the service encounter ina homogenous and predictable way

Heterogeneity is particularly the case with labour intensiveand high-contact services

Heterogeneity is less visible in technology-based services



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The Perishability of

Se

rvices It refers to the fact that services cannot be

saved, stored, resold or returned

Difficulties in synchronising supply and demand

for services



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Towards a Strategic

Classification ofServices Services can be strategically classified according to the

following five dimensions (Lovelock, 1983)

What is the nature of the service act?

What type of relationship does the service organisationhave with its customers?

How much room is there for customisation and judgmentfrom the service provider?

What is the nature of demand and supply for the service?

How is the service delivered?


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The Service Industry


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THE PURCHASE PROCESS FOR SERVICES

Awareness of Need

Information Search

Evaluation of Alternative

Service Suppliers

Request Service from Chosen

Supplier

Service Delivery

Evaluation of Service

Performance

Future Intentions

PREPURCHASE

STAGE

SERVICE

ENCOUNTER

POST PURCHASE

STAGE


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POSSIBLE LEVELS OF CUSTOMER EXPECTATIONS

Ideal expectations or desires

Normative should

expectations

Experience based norms

Acceptable expectations

Minimum tolerable expectations

HIGH

LOW


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ustomer ExpectationZone ofTolerance

Past experience & Reference Group

Desired Service

(ideal state)

Zone of Tolerance

Adequate Service

(threshold level)

Service Providers

Communications

Perceived Service

Alternatives

Predicted Service

Personal needs

Ideal Service Image

Decision Criteria

Competition

Uniqueness of Service

Situation

Situational Factors


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Decision Criteria &

Zone of toleranceMin

Zone of

Tolerance

Max

Low High

Criticality of Decision Criteria

Zone of Tolerance

varies inverselyacross Decision

criteria depending

on criticality of the

criteria


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Customers may find itdifficult to evaluate services

Search Attributes

Experience Attributes

Credence Attributes

Easy to

Evaluate

Difficult to

Evaluate


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What Customers Want

GOOD

PEOPLE

Friendly, helpful, courteous

Empathetic

Knowledgeable, accurate, thorough

Resourceful, empowered

Able to recommend solutions

Able to anticipate needs

Efficient

Trustworthy, authentic

Reliable

Responsible

Appropriate appearance & demeanor


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What Customers Want

GOOD

OFFERING

Good selection

Good quality

In stock

Available demos

Clear description & pricing

Competitive prices

Financing, deferred payments


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What Customers Want

CONVENIENCE

Convenient locations

Long hours

Available help, fast service

Signage that facilitates fast service

Fast checkout

Shipping/ delivery

Installation

Phone/ web support

On site repair

Hassle free returns

Quick resolution of problems


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What Customers Want

GOOD

ENVIRONMENT

Clean

Organized

Safe

Low pressure

Energy level appropriate toclientele

Documents

Services an Intro