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1、Services Marketing,Copyright Houghton Mifflin Company. All rights reserved.,PowerPoint Presentation by Charlie Cook,13,Part ThreeProductDecisions,132,Chapter Learning Objectives,To understand the nature and importance of services To identify the characteristics of services that differentiate them fr
2、om goods To describe how the characteristics of services influence the development of marketing mixes for services To understand the importance of service quality and explain how to deliver exceptional service quality To explore the nature of nonprofit marketing,133,Chapter Outline,The Nature and Im
3、portance of Services Characteristics of Services Developing and Managing Marketing Mixes for Services Service Quality Nonprofit Marketing,134,The Nature and Importance of Services,Service An intangible product involving a deed, performance, or effort that cannot be physically possessed Application o
4、f human and/or mechanical efforts directed at people or objects Service Facts (U.S.) Service industries account for over 50% of GDP. Service industries 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 th
5、e U.S. economy.,135,Characteristics of Services,Intangibility Services are actions that have no permanent physical qualities as opposed to goods which can be touched and possessed over time. Inseparability of Production and Consumption The production of a service cannot be separated from its consump
6、tion by the customer. Services are produced, sold, and consumed all at the same time. Perishability Services cannot be produced ahead of time and stored until needed.,136,The Tangibility Continuum,FIGURE 13.1,137,Characteristics of Services (contd),Heterogeneity Variation in the quality of services
7、delivered by individuals and organizations Client-Based Relationships Interactions that result in satisfied customers who use a service repeatedly over time,138,Characteristics of Services (contd),Customer Contact The level of interaction between the service provider and the customer necessary to de
8、liver the service High-contact services require the customer to be present during the production of the service. High contact services require well-trained and motivated service personnel. Low-contact services do not require the customers continuous presence while the service is carried out.,139,131
9、0,1311,Developing and Managing Marketing Mixes for Services,Development of Services Package or bundle of services consists of core services that are the expected basic service experience. supplementary services that differentiate the service bundle from those of other competitors. “Basic,” “Standard
10、,” and “Deluxe” service combinations are custom-tailored to consumers specific needs.,1312,Developing and Managing Marketing Mixes for Services (contd),Development of Services (contd) Effective delivery of services Segment the pleasure and combine the pain Get bad experiences out of the way as soon
11、as possible Build commitment through choice Give ritual to consumers Finish strong,1313,Developing and Managing Marketing Mixes for Services (contd),Distribution of Services Customers come to a service facility. Services are brought to the consumer. Services are provided at “arms length”, with no fa
12、ce-to-face customer contact.,1314,24/7 ATM,Developing and Managing Marketing Mixes for Services (contd),Distribution of Services Marketing channels are typically short and direct, with no or few intermediaries. Inseparability of service requires a focus on service demand/supply management (e.g., sch
13、eduling of service delivery). Accessibility to services is increased by substituting automated equipment for contact personnel.,1315,Developing and Managing Marketing Mixes for Services (contd),Promotion of ServicesOvercoming the Intangibility of Services Providing tangible (symbolic) cues/images Pr
14、omoting price, guarantees, availability, personnel Using concrete, specific language in advertising Using personal selling and word-of-mouth advertising Offering services on a trial basis,1316,Developing and Managing Marketing Mixes for Services (contd),Pricing of Services Performance of specific ta
15、skscar washing Amount of time to complete the servicebabysitting Variable pricing based on the level of demand; high price at peak demand, lower prices when demand slackensairline seats Bundling of services requires decisions on unit, combination, or separate pricingtelephone services Pricing as an
16、indicator of quality is used when consumers have no other cues to indicate quality.,1317,Service Quality Model,FIGURE 13.2,Source: “Service Quality Model,” adapted from A. Parasuraman, Leonard L. Berry, and Valarie A. Zeithaml, “An Empirical Examination of Relationships in an Extended Service Qualit
17、y Model,” Marketing Science Institute Working Paper Series, Report no. 90-112 (Cambridge, MA: Marketing Science Institute, 1990). Used with permission.,1318,Service Quality,Service Quality Customers perception of how well a service meets or exceeds their expectations Service quality is judged from t
18、he customers viewpoint.,1319,Service Quality (contd),Customer Evaluation of Service Quality Search qualities Tangible attributes that can be judged before the purchase of a product Experience qualities Attributes assessable only during purchase and consumption of a service Credence qualities Attribu
19、tes that customers may not be able to evaluate even after purchasing and consuming the service,1320,1321,Delivering Exceptional Service Quality,Analysis of Customer Expectations Levels of customer service expectations Desired: if met, customer is very satisfied Acceptable: if met, customer is not di
20、ssatisfied Conduct marketing research Focus groups Comment cards Asking employees,1322,Delivering Exceptional Service Quality (contd),Service Quality Specifications Establish goals for service delivery Secure managements commitment to service quality Employee Performance Train customer-contact employees at all levels Incorporate service quality into employee evaluation and compensation systems,1323,Delivering Exceptional Service Quality (contd),Management of Service Expectations Conduct advertising campaigns that make realis
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