BUS FINAL - The Nature and Importance of Service Topic 14 Service An intangible product involving a deed performance or effort that cannot be

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The Nature and Importance of Service - Topic 14 Service An intangible product involving a deed, performance, or effort that cannot be physically possessed Application of human and/or mechanical efforts directed at people or objects Five DimensionsOf Service Encounters 1)Time- long/short 2)Physical Proximity-direct/remote 3)Participation- high/low 4)Engagement- high/low 5)Customization- high/low Service Facts (U.S.) Service industries employ 80% of nonfarm workers More than half of new businesses are service firms Services have increased in tandem with the long-term growth of the U.S. economy Service Sector as a Percentage of U.S. GDP:
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Where do you expect to receive the highest level of customer service?
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Characteristics of Services
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Class discussion: give some examples of these service characteristics based on your own experiences with services. Go to Vista Customer Contact Association
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Heterogeneity allows service marketers to develop or customize their service to match specific customer needs : Developing and Managing Marketing Mixes for Services Development of Services (product) Package services consisting of core services that meet basic expectations Create supplementary services that differentiate service from competition Empower front-line employees Train current or new employees better Become “customer obsessed” Distribution of Services (place) Customers go to service facility or services are brought to consumer Marketing channels are typically short Accessibility to services is increased by substituting automated equipment for contact personnel Pricing of Services (price) Based on performance of specific tasks (car wash) or on time to complete the service (babysitting) Based on level of demand; high price at peak, lower when demand slackens (airline seats)
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Price as indicator of quality when consumers have no other cues to indicate quality Promotion of Services (promotion) Provide tangible (symbolic) cues/images Promote price, guarantees, availability, personnel Use concrete, specific language in advertising Use personal selling to help “close sale” Offer services on a trial basis Service marketers use specific language in promotion to make the services more tangible: Service Quality Customers’ perception of how well a service meets or exceeds their expectations Service quality is judged from the customer’s viewpoint Top Factors Considered When Buying New Technology
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Factors Affecting Service Quality Expectations: Customer service expectations are based on: Customer Evaluation of Service Quality: Dimensions of Service Quality:
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Delivering Exceptional Service Quality Difficult to deliver on consistent basis Everyone has experienced poor service Impossible to deliver 100% of the time To improve the likelihood of delivering high quality service, the service company must understand the four dimensions affecting service quality:
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Overall Service Quality Model Nonprofit Marketing
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This note was uploaded on 05/02/2008 for the course BUS 360 taught by Professor Kimbrough during the Spring '08 term at N.C. State.

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BUS FINAL - The Nature and Importance of Service Topic 14 Service An intangible product involving a deed performance or effort that cannot be

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