© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin MANAGING SERVICES 12 C HAPTER.

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MANAGING SERVICES1212

CHAPTER

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• Describe four unique elements of services.

• Recognize how services differ and how they can be classified.

AFTER READING THIS CHAPTERYOU SHOULD BE ABLE TO:

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• 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:

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• 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:

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THE HARD ROCK CAFÉ KNOWS WHAT YOU WANT: AN EXCEPTIONAL EXPERIENCE

MANAGING SERVICES

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• The Four I’s of Services• Intangibility

• Inconsistency

• Inseparability

• Inventory Idle production capacity

• The Service Continuum

THE UNIQUENESS OF SERVICES

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• Classifying Services• Delivery by People or Equipment

THE UNIQUENESS OF SERVICES

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• Classifying Services (cont)• Profit or Nonprofit Organizations

• Government Sponsored or Not

THE UNIQUENESS OF SERVICES

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Concept Check

1. What are the four I’s of services?

A: Intangibility, Inconsistency, Inseparability, Inventory.

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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

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3. To eliminate service inconsistencies, companies rely on _____________ and _______.standardization

Concept Check

training

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• 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

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• Customer Contact and Relationship Marketing

Customer contact audit

• A Customer’s Car Rental Activities Relationship marketing

HOW CONSUMERS PURCHASE SERVICES

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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.

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2. Hertz created its differential advantage at the points of __________________ in their customer contact audit.customer interaction

Concept Check

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• Internal marketing

• Product (Service)• Exclusivity

• Branding

• Capacity Management

• Pricing Off-peak pricing

• Place (Distribution)

• Promotion

MANAGING THE MARKETING OF SERVICES

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Deregulation Technological development

SERVICES IN THE FUTURE

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1. Matching demand with capacity is the focus of ________ management.

capacity

Concept Check

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Concept Check

2. How does a movie theater use off-peak pricing?

A: Movie theaters reduce prices for matinees and often for weekdays.

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Concept Check

3. What factors will influence future changes in services?

A: Deregulation and technological development.