Services Marketing
- Created by: Sess
- Created on: 10-05-15 06:55
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- Services
- Characteristics of Services
- Lack of Ownership
- Nothing is transferred during the interaction.
- Services are usually time shares of things eg seats on a place
- Loyalty schemes promote a sense of ownership as it generates a perceived right to be part of a service provider.
- Intangibility
- Other ques besides our senses (that are used in assessing products) are used. These ques make the service more tangible
- The ques can often come in the form of the 7Ps.
- Perishability
- Services perish in a way products do not.
- They are manufactured and consumed simultaneously
- Eg. seats on a train after it leaves. This is due to fluctuating demand.
- One of the marketer's main goals is to reduce lose-forever revenue.
- Price
- This can be achieved through differential pricing.
- Low prices during low demand and high prices in high demand.
- Variability
- Services are consumed as they are produced.
- This makes it impossible to standardise quality or test it.
- Demand may increase unexpectedly and over fill service capacity
- Variability in a service may reduce customer satisfaction so that they end up defecting to competitors.
- By planning when such situations may occur, marketers can generate solutions eg. entertainment in a line.
- Inseparability
- The consumer and the service provider must come into contact and interact.
- Differences between whether its a mass service experience eg cinema or solo expericence eg doctor impact interaction.
- Mass services leave room for the other consumers to affect the quality of a service eg by being noisy
- Solo services allow for more control by provider, opportunities exist for adaptability to consumer
- If there is a broad mix of consumers, this may dilute service standards in an effort to accommodate all.
- Lack of Ownership
- Definition
- 1) Any act or performance offered by one party to another that is essentially intangible.
- 2) Consumption of the service does not result in any transfer of ownership even though the service process may be attached to a physical product.
- Gronroos (1990)
- Service Processes
- People Processing
- People present themselves to become emersed in the service
- They must actively cooperate with the service provider
- For marketers, considering the process and outcomes can give insight into what benefits and non-financial costs consumer is undergoing.
- e.g. at a dentistry, a comfy chair, back ground music and a clean location can help
- Possession Processing
- Peoples possessions often needs maintenance also. They can be sent off or an attendant called.
- The key difference is that people are detached to focus on other tasks should they need to.
- The quality of the service is not dependent on the owner being there
- Mental Stimulus Processing
- Tries to shape attitudes of behaviour eg education
- Focuses on the mind
- Its delivery can occur through 2 methods: via media channels or in the location they originate from eg museum
- But the distance channel is a lot less rich.
- Information Processing
- This is the most intangible of all processes.
- Companies can push people away from telephoning or seeing a clerk towards going to the website.
- e.g. RAKBank pushing online transactions and ATM machines
- Lovelock et al (1999)
- People Processing
- Service Management
- Service Quality
- Customer expectations of a service will shape their perception of the actual service encounter.
- If it exceeds expectations then customers are deemed satified. If it doesn't, customers are unlikely to return
- SERVQUAL
- Parasuraman et al (1988)
- Model into managing service quality
- 'Measures' gaps between expected service and the actual perceived service
- 1) Customers Expectations vs Management perception
- if management doesnt understand customer needs, resources are inappropriately directed. eg trains may think they need bag storage but really they need safe comfy seats
- 2) Management perception vs service quality specifitcation
- Management gets customer needs but doesnt set performance standard or fails to set a realistic one eg train knows they need seats but doesnt set how many
- 3) Service quality specification vs service delivery
- Service delivery doesnt math the spec eg due to lack of training (grumpy train personel)
- 4) Service delivery vs External communication
- If adverts show train to be comfy and roomy and the actual train doesnt match the pic, the communication has distorted the consumers view of what is realistic
- 5) Perceived service vs expected service
- a misunderstanding of the service quality due to previous gaps of lack of customer knowledge.
- 1) Customers Expectations vs Management perception
- 22 questions that given to consumers so tha tmanagment can assess their service
- Thanks to this model, 5 dimensions of service quality are proposed
- Reliability
- Responsiveness of employees
- Assurance of employees
- Empathy of employees
- Tangibles
- An issue with the use of servqual is that customers use differenct dimensions to assess each time
- There are statistical inaccuracies from measuring differences and reliability issues from asking customer opinion
- Gabott & Hogg 1998
- Based on qualitative interviews with exceutives and focus consumer groups
- It offers little in the way of guidance as to how to close the gaps
- Customer expectations of a service will shape their perception of the actual service encounter.
- Internal Marketing
- Motivations for any existing employees
- Google heavily internal markets for enthusiastic employees
- Service Failure
- Failure in the delivery system
- eg slow service, service failure (uncooked food)
- failure through employee actions
- they are rude or dismissive
- Booms et al 1990
- Service recovery
- Service recovery is concerned with an organisation’s systematic attempt to correct a problem following service failure (Gronroos, 1988)
- Firms need to react quickly and empathically to a consumers concerns
- The aim is to make a paradox so that customers were even more satisfied than they would have been previously
- Service failure in response to customer requests
- Failure in the delivery system
- Service Quality
- Product/Service Continuum
- Characteristics of Services
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