Chapter 13: Designing and Managing Services

1. Chapter 13: Designing and Managing Services Prepared by: M Wahyu Gamal (B41 – 122121077)

2. Chapter Questions • How do we define and classify services and how do they differ from goods? • How do we market services? • How can we improve service quality? • How do services marketers create strong brands? • How can goods marketers improve customer support services?

3. Service Sectors Government Private nonprofit Business Retail Manufacturing

4. Categories of Service Mix Pure tangible good Good with accompanying services Hybrid Service with accompanying goods Pure service

5. Figure 13.2 Continuum of Evaluation for Different Types of Products

6. Distinctive Characteristics of Services Intangibility Inseparability Variability Perishability

7. Physical Evidence and Presentation Place People Equipment Communication material Symbols Price

8. How to Increase Quality Control Invest in good hiring and training procedures Standardize the service-performance process Monitor customer satisfaction

9. Matching Demand and Supply Demand side • Differential pricing • Nonpeak demand • Complementary services • Reservation systems Supply side • Part-time employees • Peak-time efficiency • Increased consumer participation • Shared services • Facilities for future expansion

10. Improving Service Quality • Listening • Reliability • Basic service • Service design • Recovery • Surprising customers • Fair play • Teamwork • Employee research • Servant leadership

11. Figure 13.4 Root Causes of Customer Failure

12. Solutions to Customer Failures • Redesign processes and redefine customer roles to simplify service encounters • Incorporate the right technology to aid employees and customers • Create high-performance customers by enhancing their role clarity, motivation, and ability • Encourage customer citizenship where customers help customers

13. Figure 13.5 Three Types of Marketing in Service Industries

14. Figure 13.6 Service-Quality Model

15. Gaps that Cause Unsuccessful Service Delivery • Gap between consumer expectation and management perception • Gap between management perception and service-quality specifications • Gap between service-quality specifications and service delivery • Gap between service delivery and external communications • Gap between perceived service and expected service

16. Determinants of Service Quality Reliability Responsiveness Assurance Empathy Tangibles

17. Developing Brand Strategies for Services Choosing Brand Elements Establishing Image Dimensions Devising Branding Strategy

18. Customer Worries Failurefrequency Downtime Out-of-pocket costs

19. Conclusion • Services are intangible, inseparable, variable, and perishable • Service marketing must be done holistically: It calls not only for external marketing but also for internal marketing • Customers expectations play a critical role in their service experiences and evaluations. Companies must manage service quality by understanding the effects of each service encounter • To brand a service organization effectively, the company must differentiate its brand through primary and secondary service features and develop appropriate brand strategies • To provide the best customer support service for goods companies, a manufacturer must identify the services customers value most and their relative importance

20. Thank you