Description
The ppt explains service difference for customers and it covers topics like service definition, service marketing framework, characteristics, high and low contact services, service vs goods, customer behaviour
?
An act or performance offered by one party to another. (Performances are intangible, but may involve use of physical products.) An economic activity that does not result in ownership A process that creates benefits by facilitating a desired change in customers themselves, physical possessions or intangible assets
1
?
?
Operations Management Customers
Marketing Management
Human Resources Management
2
SERVICES MARKETING FRAMEWORK
CUSTOMER EVALUATION PRICE DIST
•PRODUCT •PROCESS •TECHNOLOGY& CUSTOMER EQUIPEMENTS •AMBIENCE SERVICE •PEOPLE STANDARDS
•RELIABILITY
•RESPONSIVEN ESS. •ASSURANCE •EMPATHY •TANGIBILITY CUSTOMER SATISFACTION/ DISSATISFACTION
CRM
PROMO
Queu ing
•Service guarantee •Complaint management .
Four Unique Characteristics of Services
• Intangibility
• Inseparability
• Inconsistency • Perishability
1
Hi Salt Soft drinks VCR Tennis Racquet New Car Custom-clothing Furniture Rental Fast Food Restaurant Plumbing Repair Lawn Care Oil Change on Car House Cleaning Airline Flight Teaching Investment Advice Lo Intangible Elements
Hi
Easy to Evaluate
• CLOTHING • JEWELLRY • FURNITURE • HOUSES • AUTOMOBILES • RESTAURANT MEALS • VACATION • HAIRCUTS • CHILD CARE • TELEVISION REPAIR • LEGAL SERVICES • ROOT CANAL • AUTO REPAIR • MEDICAL DIAGNOSIS
High in search Qualities
Most Goods
High in Experience Qualities
Most Services
Hard to Evaluate
High in credence Qualities
3
High Contact Services
?
Customers visit service facility and remain throughout service delivery
Active contact between customers and service personnel
? ?
Includes most people-processing services Low Contact Services
? ?
Little or no physical contact with service personnel Contact usually at arm’s length through electronic or physical distribution channels New technologies (e.g. Web) help reduce contact levels
?
High
Nursing Home HairCut Good Restaurant Personal Tuition
Emphasizes encounters with service personnel
Management Consulting 4-Star Hotel Airline Travel (Econ.) Telephone Banking College Education Tax Preparation Department Store Retail Banking Dry Cleaning Motel Insurance Car Repair Supermarket Postal Service Fast Food Lawn Care Movie Theater Cable TV Public Transit Electronic Credit Card Banking
Emphasizes encounters with equipment
Low
WHAT IS THE NATURE OF SERVICE ACT
2. WHO OR WHAT IS THE DIRECT RECEPIENT OF SERVICE
PEOPLE
POSSESSIONS SERVICE DIRECTED AT PHYSICAL POSSESSIONS
FREIGHT TRANSPORT EQUIPMENT REPAIR AND MAINTENANCE ,LAUNDRY & DRY CLEAN, LANDSCAPING VETERINARY CARE
TANGIBLE ACTIONS
SERVICE DIRECTED AT PEOPLE’S BODIES HEALTH CARE PASSENGER TRANSPORT BEAUTY PARLOURS GYMNASIUMS HARICUTTING
INTANGIBLE ACTIONS
SERVICE DIRECTED AT PEOPLE’S MIND EDUCATION, BROAD CASTING , INFO.SERVICES THEATERS , AMUSEMENT PARKS
SERVICE DIRECTED AT INTANGIBLE ASSETS BANKING LEAGL SERVICE ACCOUNTING, INSURANCE
9
EXTENT TO PROVIDER CAN HAVE JUDGEMENT IN MEETING INDIVIDUAL CUSTOMER NEEDS
3. EXTENT TO WHICH SERVICE CHARACTERISTICS ARE CUSTOMIZED
HIGH
LOW
HIGH
LEGAL SERVICE HEALTH CARE ARCHITECTURAL DESIGN, BEAUTICIAN PLACEMENT SERVICE CONSULTING
EDUCATION PREVENTIVE HEALTH CARE
LOW
TELEPHONE SERVICE RETAIL BANKING HOTEL SERVICE
PUBLIC TRANSPORT APPLIANCES REPAIR SPECTAATOR SPORT AMUSEMENT PARK MOVIE THEATER
10
SERVICES DIFFER FROM GOODS
A. CHARACTERISTICS SERVICE 1. ENTITY INTANGIBLE S
2. STORAGE 3. QUALITY 4. PRODUCER STATUS 5. LABOUR INTENSITY 6. LIFE NOT POSSIBLE
GOODS
TANGIBLE POSSIBLE
VARIES WITH STANDARDIZED TIME AND PERSON INSEPARABLE SEPARATE FROM FROM SERVICE GOODS HIGH STILL BORN LOWER LONGER
B. OPERATIONS
7. PRODUCTION 8. FACILITY LOCATION SPONTANEOUS CLOSE TO THE CUSTOMER TIME SPREAD NEAR SUPPLY
11
9. FACILITY DESIGN
TO ACCOMMODATE TO ENHANCE PHYSICAL AND PRODUCTION PSYCHOLOGICAL NEEDS OF CUSTOMERS ENVIRONMENT PLAYS A VITAL ROLE EMPHASIS ON PRODUCT ATTRIBUTES CUSTOMERS NOT INVOLVED FIXED ZERO DEFECT
10. PRODUCT DESIGN
11. PROCESS DESIGN 12. QUALITY CONTROL 13. QUALITY OBJECTIVES 14. WORKER SKILL 15. DELIVERY
IMMEDIATE EFFECT ON CUSTOMERS VARIABLE QUALITY STANDARDS ZERO DEFECTION
INTERACTION
TECHNICAL
ALONG WITH PRODUCTION
SEPARATE FROM PRODUCTION
12
C. CUSTOMER
16. CUSTOMER INVOLVEMENT
SERVICE
HIGH
LOW/ABSENT NOT ESSENTIAL
GOODS
17. PHYSICAL PRESENCE OF CUSTOMERS IN PRODUCTION 18. PRODUCT EVALUATION
ESSENTIAL
BASED ON EXPERIENCE AND CREDENCE QUALITIES MORE EFFECTIVE WITH PSYCHOGRAPHIC VARIABLES EMPHASIS ON ASSESSING EXPECTATION LEVELS
BASED ON EXPERIENCE AND SEARCH QUALITIES MORE WITH DEMOGRAPHIC, BEHAVIOURAL VARIABLES EMPHASIS ON ASSESSING NEEDS AND WANTS
13
19. SEGMENTATION VARIABLES
20. FOCUS OF CONSUMER RESEARCH
.
21. DEMAND 22. TITLE 23. CONSUMER REACTION 24. PRICING 25. NEED SATISFIED 26. BASIS OF COMPETITION 27. CHANNELS 28. REPAIRS FLUCTUATING NO OWNERSHIP SPONTANEOUS LABOUR BASED STABILIZED OWNERSHIP POSSIBLE DELAYED MATERIAL BASED
MORE MORE PHYSICAL EMOTIONAL PERSONALIZATIO TECHNOLOGY ETC. N SHORTER IMPOSSIBLE LONGER POSSIBLE COMMON
29. REPLACEMENT RARE
14
SERVICES 30. FORECASTING 31. IMAGE 32. COST ALLOCATION SHORT RUN CORPORATE DIFFICULT
GOODS LONG RUN BRAND EASIER
D. MARKETING STRATEGY
33. ORIENTATION 34. FOCUS EXTERNAL AND INTERNAL CUSTOMER EXTERNAL CUSTOMER NEEDS
e. ORGANISATION
35. STRUCTURE 36. ROLE OF HIGHER LEVELS 37. COMMUNICATION FLATTER SUPPORTIVE CRISS CROSS TALLER DEMANDING MAINLY VERTICAL
15
DIMENSIONS OF SERVICE (customer expectatioins) 1.RELIABILITY: The ability to perform the promised service dependably and accurately. 2. TANGIBLES: The appearance of physical facilities, equipment, personnel and communication materials
3. RESPONSIVENESS: The willingness to help customers and provide prompt service. 4. ASSURANCE : The knowledge and courtesy of employees and their ability to convey trust and confidence. 5. EMPATHY: The caring, individualized attention provided to the customer.
Customer Behaviour in services
some differences
Some hypothesis
1. Consumers seek and rely more information from personal sources than from non personal sources when evaluating services prior to purchase.
2 . Consumers engage in more post purchase evaluation than pre purchase evaluation when selecting and consuming services.
3.Consumer engage in greater post purchase evaluation and information seeking with services than with products. 4.Consumers use price and physical facilities as the major cues to service quality. 5.The consumers’ evoked set of alternatives is smaller with services than with products.
6. For many non professional services,the consumer’s evoked set frequently includes self provision of the services. 7. Consumers adopt innovations in service more slowly than they adopt innovations in goods. 8. Consumer’s perceive greater risks when buying services than when buying products.
9.. Brand switching is less frequent with services than with products. 10. Consumers attribute some of their dissatisfaction with services to their own inability to specify or perform their part of the service. 11. Consumers may complain less frequently about services than about products due to their belief that they themselves are partly responsible for their dissatisfaction.
End.
doc_711498170.ppt
The ppt explains service difference for customers and it covers topics like service definition, service marketing framework, characteristics, high and low contact services, service vs goods, customer behaviour
?
An act or performance offered by one party to another. (Performances are intangible, but may involve use of physical products.) An economic activity that does not result in ownership A process that creates benefits by facilitating a desired change in customers themselves, physical possessions or intangible assets
1
?
?
Operations Management Customers
Marketing Management
Human Resources Management
2
SERVICES MARKETING FRAMEWORK
CUSTOMER EVALUATION PRICE DIST
•PRODUCT •PROCESS •TECHNOLOGY& CUSTOMER EQUIPEMENTS •AMBIENCE SERVICE •PEOPLE STANDARDS
•RELIABILITY
•RESPONSIVEN ESS. •ASSURANCE •EMPATHY •TANGIBILITY CUSTOMER SATISFACTION/ DISSATISFACTION
CRM
PROMO
Queu ing
•Service guarantee •Complaint management .
Four Unique Characteristics of Services
• Intangibility
• Inseparability
• Inconsistency • Perishability
1
Hi Salt Soft drinks VCR Tennis Racquet New Car Custom-clothing Furniture Rental Fast Food Restaurant Plumbing Repair Lawn Care Oil Change on Car House Cleaning Airline Flight Teaching Investment Advice Lo Intangible Elements
Hi
Easy to Evaluate
• CLOTHING • JEWELLRY • FURNITURE • HOUSES • AUTOMOBILES • RESTAURANT MEALS • VACATION • HAIRCUTS • CHILD CARE • TELEVISION REPAIR • LEGAL SERVICES • ROOT CANAL • AUTO REPAIR • MEDICAL DIAGNOSIS
High in search Qualities
Most Goods
High in Experience Qualities
Most Services
Hard to Evaluate
High in credence Qualities
3
High Contact Services
?
Customers visit service facility and remain throughout service delivery
Active contact between customers and service personnel
? ?
Includes most people-processing services Low Contact Services
? ?
Little or no physical contact with service personnel Contact usually at arm’s length through electronic or physical distribution channels New technologies (e.g. Web) help reduce contact levels
?
High
Nursing Home HairCut Good Restaurant Personal Tuition
Emphasizes encounters with service personnel
Management Consulting 4-Star Hotel Airline Travel (Econ.) Telephone Banking College Education Tax Preparation Department Store Retail Banking Dry Cleaning Motel Insurance Car Repair Supermarket Postal Service Fast Food Lawn Care Movie Theater Cable TV Public Transit Electronic Credit Card Banking
Emphasizes encounters with equipment
Low
WHAT IS THE NATURE OF SERVICE ACT
2. WHO OR WHAT IS THE DIRECT RECEPIENT OF SERVICE
PEOPLE
POSSESSIONS SERVICE DIRECTED AT PHYSICAL POSSESSIONS
FREIGHT TRANSPORT EQUIPMENT REPAIR AND MAINTENANCE ,LAUNDRY & DRY CLEAN, LANDSCAPING VETERINARY CARE
TANGIBLE ACTIONS
SERVICE DIRECTED AT PEOPLE’S BODIES HEALTH CARE PASSENGER TRANSPORT BEAUTY PARLOURS GYMNASIUMS HARICUTTING
INTANGIBLE ACTIONS
SERVICE DIRECTED AT PEOPLE’S MIND EDUCATION, BROAD CASTING , INFO.SERVICES THEATERS , AMUSEMENT PARKS
SERVICE DIRECTED AT INTANGIBLE ASSETS BANKING LEAGL SERVICE ACCOUNTING, INSURANCE
9
EXTENT TO PROVIDER CAN HAVE JUDGEMENT IN MEETING INDIVIDUAL CUSTOMER NEEDS
3. EXTENT TO WHICH SERVICE CHARACTERISTICS ARE CUSTOMIZED
HIGH
LOW
HIGH
LEGAL SERVICE HEALTH CARE ARCHITECTURAL DESIGN, BEAUTICIAN PLACEMENT SERVICE CONSULTING
EDUCATION PREVENTIVE HEALTH CARE
LOW
TELEPHONE SERVICE RETAIL BANKING HOTEL SERVICE
PUBLIC TRANSPORT APPLIANCES REPAIR SPECTAATOR SPORT AMUSEMENT PARK MOVIE THEATER
10
SERVICES DIFFER FROM GOODS
A. CHARACTERISTICS SERVICE 1. ENTITY INTANGIBLE S
2. STORAGE 3. QUALITY 4. PRODUCER STATUS 5. LABOUR INTENSITY 6. LIFE NOT POSSIBLE
GOODS
TANGIBLE POSSIBLE
VARIES WITH STANDARDIZED TIME AND PERSON INSEPARABLE SEPARATE FROM FROM SERVICE GOODS HIGH STILL BORN LOWER LONGER
B. OPERATIONS
7. PRODUCTION 8. FACILITY LOCATION SPONTANEOUS CLOSE TO THE CUSTOMER TIME SPREAD NEAR SUPPLY
11
9. FACILITY DESIGN
TO ACCOMMODATE TO ENHANCE PHYSICAL AND PRODUCTION PSYCHOLOGICAL NEEDS OF CUSTOMERS ENVIRONMENT PLAYS A VITAL ROLE EMPHASIS ON PRODUCT ATTRIBUTES CUSTOMERS NOT INVOLVED FIXED ZERO DEFECT
10. PRODUCT DESIGN
11. PROCESS DESIGN 12. QUALITY CONTROL 13. QUALITY OBJECTIVES 14. WORKER SKILL 15. DELIVERY
IMMEDIATE EFFECT ON CUSTOMERS VARIABLE QUALITY STANDARDS ZERO DEFECTION
INTERACTION
TECHNICAL
ALONG WITH PRODUCTION
SEPARATE FROM PRODUCTION
12
C. CUSTOMER
16. CUSTOMER INVOLVEMENT
SERVICE
HIGH
LOW/ABSENT NOT ESSENTIAL
GOODS
17. PHYSICAL PRESENCE OF CUSTOMERS IN PRODUCTION 18. PRODUCT EVALUATION
ESSENTIAL
BASED ON EXPERIENCE AND CREDENCE QUALITIES MORE EFFECTIVE WITH PSYCHOGRAPHIC VARIABLES EMPHASIS ON ASSESSING EXPECTATION LEVELS
BASED ON EXPERIENCE AND SEARCH QUALITIES MORE WITH DEMOGRAPHIC, BEHAVIOURAL VARIABLES EMPHASIS ON ASSESSING NEEDS AND WANTS
13
19. SEGMENTATION VARIABLES
20. FOCUS OF CONSUMER RESEARCH
.
21. DEMAND 22. TITLE 23. CONSUMER REACTION 24. PRICING 25. NEED SATISFIED 26. BASIS OF COMPETITION 27. CHANNELS 28. REPAIRS FLUCTUATING NO OWNERSHIP SPONTANEOUS LABOUR BASED STABILIZED OWNERSHIP POSSIBLE DELAYED MATERIAL BASED
MORE MORE PHYSICAL EMOTIONAL PERSONALIZATIO TECHNOLOGY ETC. N SHORTER IMPOSSIBLE LONGER POSSIBLE COMMON
29. REPLACEMENT RARE
14
SERVICES 30. FORECASTING 31. IMAGE 32. COST ALLOCATION SHORT RUN CORPORATE DIFFICULT
GOODS LONG RUN BRAND EASIER
D. MARKETING STRATEGY
33. ORIENTATION 34. FOCUS EXTERNAL AND INTERNAL CUSTOMER EXTERNAL CUSTOMER NEEDS
e. ORGANISATION
35. STRUCTURE 36. ROLE OF HIGHER LEVELS 37. COMMUNICATION FLATTER SUPPORTIVE CRISS CROSS TALLER DEMANDING MAINLY VERTICAL
15
DIMENSIONS OF SERVICE (customer expectatioins) 1.RELIABILITY: The ability to perform the promised service dependably and accurately. 2. TANGIBLES: The appearance of physical facilities, equipment, personnel and communication materials
3. RESPONSIVENESS: The willingness to help customers and provide prompt service. 4. ASSURANCE : The knowledge and courtesy of employees and their ability to convey trust and confidence. 5. EMPATHY: The caring, individualized attention provided to the customer.
Customer Behaviour in services
some differences
Some hypothesis
1. Consumers seek and rely more information from personal sources than from non personal sources when evaluating services prior to purchase.
2 . Consumers engage in more post purchase evaluation than pre purchase evaluation when selecting and consuming services.
3.Consumer engage in greater post purchase evaluation and information seeking with services than with products. 4.Consumers use price and physical facilities as the major cues to service quality. 5.The consumers’ evoked set of alternatives is smaller with services than with products.
6. For many non professional services,the consumer’s evoked set frequently includes self provision of the services. 7. Consumers adopt innovations in service more slowly than they adopt innovations in goods. 8. Consumer’s perceive greater risks when buying services than when buying products.
9.. Brand switching is less frequent with services than with products. 10. Consumers attribute some of their dissatisfaction with services to their own inability to specify or perform their part of the service. 11. Consumers may complain less frequently about services than about products due to their belief that they themselves are partly responsible for their dissatisfaction.
End.
doc_711498170.ppt