2. Service elements Flashcards
Heterogeneous
The term heterogeneity describes the uniqueness of service offerings (also known as variability). In other words, services are generated, rendered, and consumed at one time. … Given that services are heterogeneous, it is essential that each and every customer receive excellent service.
Homogeneous
Homogeneity is where services are largely the same (the opposite of variability above). We considered McDonald’s above which is a largely homogeneous service, so now let’s look at KFC and Pizza Hut. Both of these businesses provide a homogeneous service experience whether you are in New York, or Alaska, or even Adelaide. Consumers expect the same level of service and would not anticipate any huge deviation in their experience.
Service economies
Western economies have seen deterioration in their traditional manufacturing industries, and growth in their service economies.
Almost in all richest countries services takes a large part of GDP.
Service logic explained
Intangible resources; The customer is always the cocreator of value (example, if the consumer asks a lot of questions they might get better service aka lecture); Service is the fundamental basis of exchange; goods are a distribution mechanism for service provision; et. (can be found more on the first paper )
The Dominant Logic
The dominant logic focused on tangible resources, embedded value, and discrete transactions
7P (additional 3)
> Product > Place > Promotion > Price \+ > People > Physical evidence > Process
People
All human actors playing a part in service delivery and thus influence the buyers’ perceptions; namely, the firm’s personnel, the customer, and other customers in the service environment.
People are the most important element of any service or experience. Services tend to be produced and consumed at the same moment, and aspects of the customer experience are altered to meet the individual needs of the person consuming it.
Physical evidence
Physical Evidence is the material part of a service. Strictly speaking, there are no physical attributes to a service, so a consumer tends to rely on material cues. There are many examples of physical evidence, including some of the following buildings, equipment, signs and logos, annual accounts and business reports, brochures, your website, and even your business cards. (And online)
Process
The actual procedures, mechanisms, and flow of activities by which the service is delivered aka customer journey or the flow. How is it easy to get what you want? How long it will take? How many meetings it will take? Make the journey without obstacles.
Holistic environment
When creating the Servicescape it’s important to think not only about the customers but also your employees. And it will influence social interaction between employees and consumers.
The importance of physical evidence
> The physical evidence is sometimes there to facilitate the flow of the service delivery.
> Physical evidence like uniforms can create the perception of value. When superman is without the uniform he’s powerless ;)
> Physical evidence is sometimes is the main difference from other services
> Servicescape affects user behaviour at cognitive, emotional and psychological levels and that perceived servicescape is an indicator of service quality and customer satisfaction