services (ch12)

services (ch12)

1. characteristics:

   • INTANGIBLE: No physical object makes it hard to communicate benefits.
   • INSEPARABLE: Production and consumption are simultaneous, meaning the consumer takes part in production.
   • HETEROGENEOUS: Services depend on their employees for quality, which makes consistency difficult to achieve.
   • PERISHABLE: Services cannot be warehoused, and it is challenging to synchronize supply and demand.

2. HOW ARE ASSESSED? QUALITY IN:

   • SEARCH: characteristic assessed before purchase (goods)
   • EXPERIENCE: assessed after purchase
   • CREDENCE: assessed only with appropriate knowledge.

3. COMPONENTS OF SERVICE QUALITY:

   • RELIABILITY: The ability to perform the service right the first time
   • RESPONSIVENESS: The ability to provide prom services
   • ASSURANCE: The knowledge and curtsy of the employees. Convey trust
   • EMPATHY: caring, individualised attention to costumers
   • TANGIBLES: The physical evidence of a service
   • THE GAP MODEL OF SERVICE QUALITY
     • GAP
       • #1: what custo. wants vs manager thinks #2: mana thinks cost wants vs the service quality specifications (inefficiency to translate what cost want into the delivery system)
       • #3: service quality specifications vs the provided services. (lack of training) #4 the provided service vs. what the customer is told it provide (communication gap)
       • #5 the service that customers receive vs. the service they want

4. MARKETING MIXES IN SERVICES

   • TYPES OF PROCESS INVOLVED
     • PEOPLE PROCESSING: service is directed to the customer (hairstyling)
     • MENTAL STIMULUS: service is directed to peoples minds (sport events)
     • POSSESSION PROCESSING: service is directed to customers physical possesions (car wash)
     • INFORMATION PROCESSING: service uses brainpower or technology directed to customer assests (consultancy)
   • SERVICE
     • SUPPLEMENTARY: group of services support or enhance the core one
     • CORE: most basic benefit customer buys
   • STANDARDISATION AND CUSTOMISATION
     • MASS CUSTOMISATION: strategy to deliver customised service by technology on amass basis (bank app)

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