9315_mm2 - module2.pdf
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Transcript of 9315_mm2 - module2.pdf
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What is Service?
There are no such thing as service
industries. There are only industries whose
service components are greater or less
than those of other industries. Everybody isin service. (Levitt)
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Continuum
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Goods Services
Toothpaste Airconditioner HospitalAutomobile RestaurantAirlines
(full service)Consulting
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Service Types
B2Co Salon
o Education
o Legalo Medical
o
B2Bo Janitor
o Consulting
o CA
o Maintenance
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Features of Services
Intangible
Perishable
Variable
Inseparable
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Service Attributes
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Searcho Can be evaluated before purchase
o High for goods
Experienceo Can be evaluated during the service delivery process
Credenceo Can take a long time to evaluateeven after the
process is over
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Customer Contact levels
High contact service Customers involved throughout the
service delivery process
Medium contact
service
Customers visit service facility but do not
remain for the whole durationLow contact service Little/no personal contact between
customer and service provider - servicedelivered from remote location, oftenthrough electronic means
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Marketing Challenges
Cannot be inventoriedo Demand forecastingsmoothing through promotions, dynamic
pricing
o Capacity adjustmentin tandem with operations
Intangibility - difficult to evaluate, and todifferentiate between competitorso Make tangible through physical cues
o Vivid imagery in advertising and branding
Difficult to visualise and understand - greaterperceived risko Educate on what to look for, documentation of performance,
guarantees
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Marketing Challenges Contd.
Co-production with customersencounter may getspoiled, hurt productiono User-friendly equipment & facilities
o Training of customers & customer support
Presence of people (service personnel & othercustomers)can affect satisfactiono Recruit and train employees
o Target right customers at right place and time
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Marketing Challenges Contd.
Variablehard to maintain consistency, reliability,mass productiono Quality standards based on customer expectations
o Good service recovery systems
o Automate interactionsin absence of customers
Time becomes importantwaiting time issueso Speed of delivery
o Ameliorate burden of waiting
o Extended service hours
Distribution through non-physical channelsinformation, moneyo User-friendly websites
o Security issues to be sorted out
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3 More Ps
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People
The human element
Physical Evidence
The material element
Process
The organisational element
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People
The most important element
Brand ambassadors
Service orientation
Keeping employees motivatedo Autonomy - higher say in how they perform the job
o Job rotation
o Job enrichmentmore responsibilitieso Recognition
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3 Pillars of Services
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ServiceExcellence
HumanRelations
OperationsMarketing
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Physical Evidence Servicescape
The material part of serviceo Actual locationambience, environment
o Webpageo Brochures
o Paperworkletterpads, tickets, invoices, business cards
o Furnishings
Corporate brandssignages (airports),symbols (fast food), artefacts (t-shirts,
caps)
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Spatial Design
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Process Important variable from the customers perspective
Service flowcustomer determines what needs to bedone
Service blueprinting Waiting - limited resources, personnel and/or facilities
o Seating vs. standing: Reduce waiting timemodelling
o Make it tolerable: Provide information upfront (KFC, DelhiMetro)
o Pre-processing: Self-service (Check-in kiosks)
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Service Quality
Empathyindividualising customers
Reliabilitydelivering on promises
Responsivenesswilling to help Assuranceinspiring trust and confidence
Tangiblesphysical representation
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Consistency
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Word of mouth
communications
Perceived
needsPast
experiences
Expected
service
Perceived
service
External
communications
to customers
Service
delivery
Service quality
specifications
Management perceptions
of customer expectations
Delivery Gap
Policy Gap
Communications Gap
Customer Gap
Knowledge Gap
PROVIDER
CUSTOMER
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Service FailureWhen any individual gap or the sum totalof all gaps become substantially high
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Desired Service
Zone of Tolerance
Adequate Service
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Complainer Types
Passives
Voicers
Irates
Activists
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Benefits of Complaints A satisfied consumer speaks to 3 people
(average) about her experience
A dissatisfied consumer gripes to 11 persons
(average) about her unpleasantexperience
It pays to resolve complaints
On an average only 5% dissatisfiedcustomers complain
o Others simply go to the competitor
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Service Recovery
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To make up for the inconvenience
caused by service failure
Clear training and instructions are
necessary for all customer-facingpersonnel to handle failure and create
recovery
Best opportunity to tie the customer forlife
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Thank You!
MBA-I 2014-16