Chapt 13 Service Mgmt

7/31/2019 Chapt 13 Service Mgmt

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Designing and

Managing Services

13

Marketing Management

A South Asian Perspective, 13th

ed


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Copyright 2009 Dorling Kindersley (India) Pvt. Ltd. 13-2

What is a Service?

A service is any act of performancethat one party can offer another that is

essentially intangible and does not

result in the ownership of anything; itsproduction may or may not be tied to a

physical product.


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Service Sectors

GovernmentPrivate

nonprofit

Business Retail


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Categories of Service Mix

Pure tangible good

Good w/ accompanying services

Hybrid

Service w/ accompanying goods

Pure service


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Service Distinctions

Equipment-based or people-based

Service processes

Clients presence required or not Personal needs or business needs

Objectives and ownership


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Continuum of Evaluation


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Distinctive Characteristicsof Services

Intangibility

Inseparability

Variability

Perishability


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Manage the Evidence; tangibilize theintangible

Place

People

Equipment

Communicationmaterial

Symbols

Price


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How to Increase Quality Control

Invest in good hiring and

training procedures

Monitor customer satisfaction

Standardize the

service-performance process


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Matching Demand and Supply

Demand side

Differential pricing

Nonpeak demand

Complementaryservices

Reservation

systems

Supply side

Part-timeemployees

Peak-time efficiency

Increased consumerparticipation

Shared services Facilities for future

expansion

t


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uepr nt orOvernight Hotel Stay


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Improving Service Quality

Listening

Reliability

Basic service

Service design

Recovery

Surprisingcustomers

Fair play

Teamwork

Employee research

Servant leadership


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Root Causesof Customer Failure


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Solutions to Customer Failures

Redesign processes and redefine customerroles to simplify service encounters

Incorporate the right technology to aid

employees and customers Create high-performance customers by

enhancing their role clarity, motivation, andability

Encourage customer citizenship wherecustomers help customers


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Three Types of Marketing inService Industries


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Factors Leading to CustomerSwitching Behavior

Pricing

Inconvenience

Core Service Failure Service Encounter Failures

Response to Service Failure

Competition Ethical Problems

Involuntary Switching


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Service-Quality Model


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Gaps That Cause UnsuccessfulService Delivery

Gap between consumer expectation andmanagement perception

Gap between management perception and

service-quality specifications Gap between service-quality specificationsand service delivery

Gap between service delivery and external

communications Gap between perceived service and

expected service


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Determinants of Service Quality

Reliability

Responsiveness

Assurance

Empathy

Tangibles


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Best Practices Strategic Concept

Top-ManagementCommitment

High Standards

Self-ServiceTechnologies

Monitoring Systems

Satisfying Customer

Complaints Satisfying

Employees
http://www.ritzcarlton.com/


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Importance-Performance Analysis


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Customer Importance andPerformance Ratings

for an Auto Dealership


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Customer Worries

Failurefrequency

Downtime

Out-of-pocket costs

Chapt 13 Service Mgmt

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