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Marketing What Isn’t There: Intangibles and Services

Marketing What Isn’t There: Intangibles and Services. What is a Service?. Services are acts, efforts, or performances exchanged from producer to user without ownership rights Consumer services Business services. Importance of services in the U.S. gross domestic product.

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Marketing What Isn’t There: Intangibles and Services

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  1. Marketing What Isn’t There: Intangibles and Services

  2. What is a Service? • Services are acts, efforts, or performances exchanged from producer to user without ownership rights • Consumer services • Business services

  3. Importance of services in the U.S. gross domestic product

  4. Characteristics of Services • The 4 “I”s of Services • Intangibility • Inconsistency • Inseparability • Inventory • Idle capacity

  5. Classification of Services Services Tangible Intangible Recipient of Service Customer Possessions Hair cut, plastic surgery, manicure College education., TV program, counseling Dry cleaning, auto repair, housecleaning Insurance, home security service

  6. Inventory carrying costs of services

  7. Service continuum

  8. Service classifications

  9. Core and Augmented Services • Core service is a benefit that a customer gets from the service • Augmented services are additional offerings that differentiate the firm • Example: Airline transportation • Core: travel • Augmented services: frequent flier miles, sky caps, in-flight entertainment services and Internet access

  10. Evaluative Dimensions of Service Quality • Search qualities - characteristics of a product that the consumer can examine prior to purchase • Experience qualities - characteristics that customers can determine during or after consumption • Credence qualities - attributes we find difficult to evaluate even after we’ve experienced them

  11. How consumers evaluate goods and services

  12. Measuring Service Quality • Gap Analysis - measurement tool that gauges the difference between a customer’s expectation of service quality and what actually occurred • Critical Incident Technique - company collects and closely analyzes very specific customer complaints to identify critical incidents

  13. Gap Analysis • Gap between consumer expectations and management perceptions • Gap between management perception and quality standards set by the firm • Gap between established quality standards and service delivery • Gap between service quality standards and consumer expectations • Gap between expected service and perceived service

  14. Customer contact in car rental (green shaded boxes indicate customer activity

  15. Dimensions of service quality

  16. Service Failure and Recovery • When services do fail, recover fast: • Apologize • Resolve the problem • Do not further inconvenience the customer • Analyze what happened to eliminate future failures

  17. Internal Marketing The notion that a service organization must focus on its employees, or internal market, before successful programs can be directed at customers.

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