© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin MANAGING SERVICES 12 C HAPTER.
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© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
MANAGING SERVICES1212
CHAPTER
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
• Describe four unique elements of services.
• Recognize how services differ and how they can be classified.
AFTER READING THIS CHAPTERYOU SHOULD BE ABLE TO:
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
• Understand the way in which consumers purchase and evaluate services.
• Develop a customer contact audit to identify service advantages.
AFTER READING THIS CHAPTERYOU SHOULD BE ABLE TO:
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
• Understand the important role of internal marketing in service organizations.
• Explain the role of the four Ps in the services marketing mix.
AFTER READING THIS CHAPTERYOU SHOULD BE ABLE TO:
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
THE HARD ROCK CAFÉ KNOWS WHAT YOU WANT: AN EXCEPTIONAL EXPERIENCE
MANAGING SERVICES
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
• The Four I’s of Services• Intangibility
• Inconsistency
• Inseparability
• Inventory Idle production capacity
• The Service Continuum
THE UNIQUENESS OF SERVICES
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
• Classifying Services• Delivery by People or Equipment
THE UNIQUENESS OF SERVICES
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
• Classifying Services (cont)• Profit or Nonprofit Organizations
• Government Sponsored or Not
THE UNIQUENESS OF SERVICES
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Concept Check
1. What are the four I’s of services?
A: Intangibility, Inconsistency, Inseparability, Inventory.
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Concept Check
2. Would inventory carrying costs for an accounting firm with certified public accountants be: a) high, b) medium, or c) low?
A: High
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
3. To eliminate service inconsistencies, companies rely on _____________ and _______.standardization
Concept Check
training
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
• The Purchase Process Search properties Experience properties Credence properties
HOW CONSUMERS PURCHASE SERVICES
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• Assessing Service Quality Gap Analysis
HOW CONSUMERS PURCHASE SERVICES
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
• Customer Contact and Relationship Marketing
Customer contact audit
• A Customer’s Car Rental Activities Relationship marketing
HOW CONSUMERS PURCHASE SERVICES
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Concept Check
1. What are the differences between search, experience, and credence properties?
A: Search properties can be determined before purchase, experience properties can only be assessed during or after consumption. Credence properties may be impossible to evaluate even after purchase and consumption.
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
2. Hertz created its differential advantage at the points of __________________ in their customer contact audit.customer interaction
Concept Check
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
• Internal marketing
• Product (Service)• Exclusivity
• Branding
• Capacity Management
• Pricing Off-peak pricing
• Place (Distribution)
• Promotion
MANAGING THE MARKETING OF SERVICES
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Deregulation Technological development
SERVICES IN THE FUTURE
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
1. Matching demand with capacity is the focus of ________ management.
capacity
Concept Check
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Concept Check
2. How does a movie theater use off-peak pricing?
A: Movie theaters reduce prices for matinees and often for weekdays.
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Concept Check
3. What factors will influence future changes in services?
A: Deregulation and technological development.
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