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1、131,Chapter Learning Objectives,To understand the nature and importance of services To identify the characteristics of services that differentiate them from goods To describe how the characteristics of services influence the development of marketing mixes for services To understand the importance of
2、 service quality and explain how to deliver exceptional service quality To explore the nature of nonprofit marketing,132,Chapter Outline,The Nature and Importance of Services Characteristics of Services Developing and Managing Marketing Mixes for Services Service Quality Nonprofit Marketing,133,The
3、Nature and Importance of Services,Service An intangible product involving a deed, performance, or effort that cannot be physically possessed Application of human and/or mechanical efforts directed at people or objects Service Facts (U.S.) Service industries account for over 50% of GDP. Service indus
4、tries employ 80% of nonfarm workers. More than half of new businesses are service firms. Services have increased in tandem with the long-term growth of the U.S. economy.,134,Characteristics of Services,Intangibility Services are actions that have no permanent physical qualities as opposed to goods w
5、hich can be touched and possessed over time. Inseparability of Production and Consumption The production of a service cannot be separated from its consumption by the customer. Services are produced, sold, and consumed all at the same time. Perishability Services cannot be produced ahead of time and
6、stored until needed.,135,The Tangibility Continuum,FIGURE 13.1,136,Characteristics of Services (contd),Heterogeneity Variation in the quality of services delivered by individuals and organizations Client-Based Relationships Interactions that result in satisfied customers who use a service repeatedly
7、 over time,137,Characteristics of Services (contd),Customer Contact The level of interaction between the service provider and the customer necessary to deliver the service High-contact services require the customer to be present during the production of the service. High contact services require wel
8、l-trained and motivated service personnel. Low-contact services do not require the customers continuous presence while the service is carried out.,138,139,1310,Developing and Managing Marketing Mixes for Services,Development of Services Package or bundle of services consists of core services that ar
9、e the expected basic service experience. supplementary services that differentiate the service bundle from those of other competitors. “Basic,” “Standard,” and “Deluxe” service combinations are custom-tailored to consumers specific needs.,1311,Developing and Managing Marketing Mixes for Services (co
10、ntd),Development of Services (contd) Effective delivery of services Segment the pleasure and combine the pain Get bad experiences out of the way as soon as possible Build commitment through choice Give ritual to consumers Finish strong,1312,Developing and Managing Marketing Mixes for Services (contd
11、),Distribution of Services Customers come to a service facility. Services are brought to the consumer. Services are provided at “arms length”, with no face-to-face customer contact.,1313,24/7 ATM,Developing and Managing Marketing Mixes for Services (contd),Distribution of Services Marketing channels
12、 are typically short and direct, with no or few intermediaries. Inseparability of service requires a focus on service demand/supply management (e.g., scheduling of service delivery). Accessibility to services is increased by substituting automated equipment for contact personnel.,1314,Developing and
13、 Managing Marketing Mixes for Services (contd),Promotion of ServicesOvercoming the Intangibility of Services Providing tangible (symbolic) cues/images Promoting price, guarantees, availability, personnel Using concrete, specific language in advertising Using personal selling and word-of-mouth advert
14、ising Offering services on a trial basis,1315,Developing and Managing Marketing Mixes for Services (contd),Pricing of Services Performance of specific taskscar washing Amount of time to complete the servicebabysitting Variable pricing based on the level of demand; high price at peak demand, lower pr
15、ices when demand slackensairline seats Bundling of services requires decisions on unit, combination, or separate pricingtelephone services Pricing as an indicator of quality is used when consumers have no other cues to indicate quality.,1316,Service Quality Model,FIGURE 13.2,Source: “Service Quality
16、 Model,” adapted from A. Parasuraman, Leonard L. Berry, and Valarie A. Zeithaml, “An Empirical Examination of Relationships in an Extended Service Quality Model,” Marketing Science Institute Working Paper Series, Report no. 90-112 (Cambridge, MA: Marketing Science Institute, 1990). Used with permission.,1317,Service Quality,Service Quality Customers perception of how well a service meets or exceeds their expectations Service quality is judged from the customers viewpoint.,1318,Service Quality (c
