book chapter 1 Flashcards
services include
All economic activities whose output is not a physical product or construction, is generally consumed att he time it is produced, and provides added value in forms (such as convenience, amusement, timeliness, confort or health) that are essentially intangible concerns of its first purchaser
Lovelocks classification of services:
Tangible actions with people as recipients: Passenger transportation, healthcare and spa treatments
Tangible actions with possessions as recipients: courier services, car repair and laundry or dry cleaning
Ingangible actions with people as recipients: Education, entertainment or psychotherapy
Services directed at intagnible assets/possessions: accounting banking legal services
services directed at people tangible possessions
do not require the customer to be present when the service is being delivered, although they may need to be present at the start or end of the service. e.g. car repair
Services directed at peoples minds
although consumers may go to physical premises such as unis or theatres, these premises may not be needed as technology such as the internet and other broadcasting technoogies can deliver them now
Services directed at peoples intangible posessions
Services such as banking can be delivered with very little direct interaction between the customer and the organization
tangibility spectrung
Is an offering tangible: salt or ingangible Teaching
five types of services
Service industries and companies; core product as service
Service as products (wide range of intangible product offerings that customers value and pay for at the marketplace)
service as experience (to experience something such as disney land)
Customer service (customer service is the service provided in support of a companys core products)
service dominant logic: (all products and physical goods are valued for the service they provide)
Service and technology
together with globalization the influence of the technology is the most profound trend affecting services marketing today
why does heterogeneity arise
Because no two customers are precicely alike: each will have unique demands or experience the service in a unique way. Thus the heterogeneity connected with services is largely the result of human interaction and all of the vagaries that accompany it. For example a tax accountant may provide a different service expereince to two different customers depending on their individual needs and personalities and on whether the accountant is interviewing them when he or she is fresh in the morning etc.
inseparability
Whereas most goods are produced first, then sold and consumed, most services are sold first and then produced and consumed simulaneously. Because services are often produced and consumed at the same time, mass production is difficult. the quality of service and customer satisfaction will be highly dependent on what happens in real time
The service triangle
Shows three interlinked groups that work together to develop, promote and deliver these service promises. These key players are labelled on the point of the triangle: the comapny, the customers and the employees/technologies
traditional marketing mix
the elements an organization controls that can be used to satisfy or communicate with customers. Composed of four Ps, Product, price, place and promotion
servuction system model:
Invisible organization and systems affect inanimate environment and service personnel –> affect customer who is also affected by other customer
