Designing and
Managing Services
Marketing Management, 13
thed
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?
Service Sectors
Government
Private
nonprofit
Manufacturing
Categories of Service Mix
Pure tangible good
Pure tangible good
Good w/ accompanying services
Good w/ accompanying services
Hybrid
Hybrid
Service w/ accompanying goods
Service w/ accompanying goods
Distinctive Characteristics
of Services
Intangibility
Inseparability
Variability
Physical Evidence and Presentation
Place
People
Equipment
Communication material
Symbols
How to Increase Quality Control
Invest in good hiring and
training procedures
Monitor customer satisfaction
Standardize the
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
Improving Service Quality
• Listening
• Reliability
• Basic service
• Service design
• Recovery
• Surprising
customers
• Fair play
• Teamwork
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
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
Determinants of Service Quality
Reliability
Responsiveness
Assurance
Empathy
Developing Brand Strategies
for Services
Choosing
Brand Elements
Establishing Image
Dimensions
Customer Worries
Failure frequency
Downtime