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IntangibilityIntangibilitya)Unlike physical products, services cannot be seen, tasted, felt, heard, or smelled before they are bought. b)To reduce uncertainty, buyers will look for evidence of quality. They will draw inferences about quality from the place, people, equipment, communication material, symbols, and price that they see. •Therefore, the service provider’s task is to “manage the evidence,” to “tangibilize the intangible.”c)Service companies can try to demonstrate their service quality through physical evidence and presentation. d) Service marketers must be able to transform intangible services into concrete benefits. 11-9
Distinctive Characteristics of ServicesInseparabilityInseparabilitya) Services are typically produced and consumed at the same time. b) Because the client is also present as the service is produced, provider-client interaction is a special feature of service marketing. c)Several strategies exist for getting around this limitation:1.Work with larger groups.2.Work faster.3.Train more service providers . 11-10
Distinctive Characteristics of ServicesVariability Variability a)Because they depend on who provides them and when and where they are provided, services are highly variable. b)There are three steps service firms can take to increase quality control:1.Invest in good hiring and training procedures.2.Standardize the service-performance process throughout the organization.Prepare a service blueprintthat depicts events and processes in a flowchart, with the objective of recognizing potential fail points. 3.Monitor customer satisfaction. 11-11
Distinctive Characteristics of ServicesPerishabilityPerishabilitya)Services cannot be stored. b)Perishability is not a problem when demand is steady. c)When demand fluctuates service firms have problems. d)Several strategies can produce a better match between supply and demand. On the demand side:1.Differential pricing.2.Non-peak demand.3.Complementary services.4.Reservation systems.On the supply side:1.Part-time employees.2.Increased consumer participation.3.Shared services.4.Facilities for future expansion.11-12
11-13Distinctive Characteristics of ServicesIntangibilityInseparabilityVariabilityPerishability
Customer failure •One study estimate that one third of all services are caused by the customers•With the increasing shift of self-services technologies this % will increase •The problem is that the customer will blame the services provider for his/her failure to use the services 11-14
Roots causes of customer failure ••Identified Customer Failure•People•Process•TechnologyServicescape•Communication•Fit•Skill•Attitude•Training •Complexity•Ease of use•Support 11-15
How to reduce the sources of customer failure •Redesign the process and redefine customer role to simplify customer encounter. Example return products by mail or introduce a courier service for returning goods.