Week 1 Flashcards
Why does the class exist?
The literature (and the SIM master) places too much emphasis on products, while services are actually more common and more important
What is a service?
A service is a deed, a performance, an effort
A service is a process or performance, rather than a thing
A service is a deed, process, and performance
Any act or performance that one party can offer to another that is essentially intangible and does not result in the ownership of anything. Its production may or may not be tied to a physical product
What are the (3) different types of services?
Service as a separate offering such as:
- hotel, insurance, banking, telecommunication,
- transportation, theater
- varies in the extent of customer contact
- focus on contact with service personnel or equipment
- focus on services to people or to equipment
Service as value-added to manufactured products (product service):
- advice, installation, maintenance, operator training, product optimization, remote monitoring, hotline, trouble-shooting
Customer service:
- Answering questions, responding to requests, solving problems
IHIP stands for:
Traditional perspective of: intangibility, heterogeneity, inseparability, perishability
(ongrijpbaarheid, heterogeniteit, onafscheidelijkheid, bederfelijkheid)
IHIP: Services are intangible
every offering is a mix of tangible and intangible elements services are predominantly intangible service benefits (the service performance) is intangible services marketing must create trust in the service provider’s capabilities
IHIP: Services are heterogeneous
- quality depends on employees
- people are a part of the offering (front-office, contact personnel)
- friendly, knowledgeable, problem solving, communication skills, personality
- quality control and delivering a consistent offering is more difficult
IHIP: Services are inseparable
(simultaneous production & consumption)
- customers affect the transaction
- employees affect the outcome
IHIP: Services are perishable
- unused capacity is lost
- difficult to match supply and demand: importance of managing demand
The IHIP framework has been criticized
With modern communication technologies services need not be inseparable
interactive web-based learning, online banking
Several alternative classifications
transactions involving ownership transfer (goods)
transactions not involving ownership transfer (services, incl. rental, access)
Vargo & Lusch (2004): it’s all about service and IHIP should not be considered as disadvantages
e.g., heterogeneity results in variation, but can also be presented as an advantage, because it can be used to customize the service to the customer’s specific requirements
Driehoek van Zeithaml & Bitner (1996)
Organisation-customer: external marketing, setting the promise.
Organisation-employer: internal marketing, enabling the promise
Employer-customer: interactive marketing, delivering the promise
What are Moments of truth
Any point of contact between customer and service provider is a moment of truth
VB:
- initial contact (information from website, advertisement)
- problem solving (advice by dealer, sales presentation)
- first use (download speed, instruction manual)
- ongoing support (problem solving, response by call center)
- further purchases (follow-up by salesperson, upgrade from dealer)
Although many of these contact points fall outside the traditional realm of marketing, all of them must be thought of and managed as marketing encounters
Why can the moments of truth be frustrated
Most service providers are more interested in making the sale than in developing a long-term profitable customer relationship.
“To put it bluntly, the moments of truth with their tremendous marketing impacts are frequently both managed and executed by people who neither are aware of their marketing responsibilities nor are interested in customers and marketing.”
- Christian Grönroos (1990)
Hoe ontwikkeld HP services?
The range of services covers the entire ownership life cycle of its technology products:
installation and deployment hardware and software support classroom training by accredited instructors optimization of technology assets financing asset recovery
Interesting omdat er dus een shift is van producten naar service plaatsvind
Rolls Roys service?
Rolls-Royce does not sell engines, but charges for the use of thrust provided: Power-by-the-Hour
(invented in 1962)
Verzoek aan philips regel licht:
Came up with ‘‘pay-per-lux’’, betalen voor het gebruikte ligt. Stimuleerd Philips om het effectief te doen, behouden controle, onderhoud, herplaatsing en herstel.
