Ch 1: Introduction to Services Flashcards
Services (definition)
Deeds, processes, and performances
Services directed at people’s bodies
(3)
→ Requires the recipient to be physically present in the service system
→ There is a possibility for the service provider to come to you
→ Recipient is a key part in the delivery of the delivery
Services directed at people’s tangible possessions (2)
→ Do not require the customer to be present when the service is being delivered, may need to be present at the start of the service
→ Focus is more on the operational issues
Services directed at people’s minds (2)
→ Education, arts, professional advice, news, and information
→ Customers can go to physical premises (theater, school) but can also access this at different locations (online newspaper, broadcasting)
Services directed at people’s intangible possessions (2)
→ Banking, insurance, and accountancy
→ Can be delivered with very little direct interaction between the customer and the organization.
What is the thought behind the service dominant logic?
Value is not created and delivered to the customer but created by the customer in participation with the company.
Value in use
Created not at the time of the exchange between the producer and the customer but when the customer integrates, applies, and uses the resources of a particular producer.
Value in context
The value varies contextually in relation to time and place dimensions. External influences and other stakeholders covering government-imposed laws and restrictions.
Characteristics of services (4)
Intangibility
Heterogeneity
Inseparability
Perishability
Heterogeneity (def)
no 2 services will be the same because of employee and customer interaction
Inseparability (def)
The customer is present while the service is being produced, customers additionally interact often during the service and affect each other’s experience
Perishability (def)
Services cannot be stored
Key players in the services marketing triangle (3)
→ Company
→ Customers
→ Employees/ technology
3 additions for the marketing mix of services
People, Physcial evidence, Process
People (Marketing Mix)
All human actors who play a part in service delivery and thus influence the buyer’s perceptions: namely, the firm’s personnel, the customer, and other customers in the service environment.
