05 services marketing

7/31/2019 05 Services Marketing

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Service?

It is any act or performance that one

party can offer to another that isessentially intangible and does not

result into the ownership of anything.

Its production may or may not be tiedto a physical product.


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Categories of Service Mix

Pure tangible good

Tangible good with accompanyingservices

Hybrid

Major service with accompanyingminor goods and services

Pure service


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Some additional classifications.

Equipment based or people based

Different processes to deliver service

Clients presence

Personal need or business need

Objectives are different


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Continuum of Evaluation forDifferent types of Products

Easy to evaluate---Difficult to evaluate

Search Qualities - Characteristics that abuyer can evaluate before purchase.

Experience Qualities - Characteristics that abuyer can evaluate after purchase.

Credence Qualities Characteristics that abuyer finds difficult to evaluate even after

consumption


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Evaluation of services

Services are generally high in experienceand credence qualities, its consequencesare as follows:

Services consumers generally rely onW-O-M rather than advertising

They rely heavily on price, personnel,physical cues to judge quality

Highly loyal to service providers whosatisfy their requirements

Switching costs, thus consumers inertia


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3 ADDITIONAL Ps

5th PEOPLE

6th PHYSICAL EVIDENCE

7th PROCESS


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Distinctive characteristics ofServices

Intangibility

Inseparability

Variability

Perishability


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Intangibility

Tangibilising the intangible

Managing the evidence

HOW???


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Inseparability

Limit Provider-Client Interaction

HOW???


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Variability

Three steps to increase quality control

Invest in good hiring and trainingprocedures

Standardize the service-performanceprocess throughout the organisation

Monitor customer satisfaction


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Perishability

Issues tackled from the demand side

Differential pricing

Nonpeak demand

Alternative facilities

Reservation systems


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Perishability

Issues tackled from the supply side Part-time employees

Peak-time efficiency

Increased Consumer participation

Shared services

Facilities for future expansion


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Personal NeedsWord-of-MouthCommunications

Past Experience

Expected Service

Perceived Service

Service Delivery External Communications

to consumers

Translation of perceptions

into Service-quality

standards

Management perceptions of

Consumer Expectations

SERVICE-QUALITY MODEL

CONSUMER

MARKETER

1

2

3 4

5


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Five gaps causing unsuccessfuldelivery

1. Gap between consumer expectation andmanagement perception

2. Gap between management perception and

service-quality specification3. Gap between service-quality specifications

and service-delivery

4. Gap between service delivery and external

communications5. Gap between perceived service and

expected service


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Five determinants of service quality

1. Reliability

2. Responsiveness3. Assurance

4. Empathy

5. Tangibles


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Source:

Marketing Management by Kotler,Keller, Koshy and Jha.

Twelfth edition. (A South Asianperspective)

05 services marketing

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