DESIGNING & MANAGING SERVICES

Presented by Sony Kusumasondjaja, SE., M.Com

SERVICES

Any act or performance that one party can offer to another that is essentially intangible and does not result in the ownership of anything Pure tangible goods VS pure tangible services

Types of Products

Product with High Search Qualities Product with High Experience Qualities Product with High Credence Qualities

Distinctive Characteristics of Services

INTANGIBILITY INSEPARABILITY VARIABILITY PERISHABILITY

INTANGIBILITY

Services can not be seen, tasted, felt, heard, or smelled before they are bought To reduce the uncertainty, consumers will look for evidence of quality

INSEPARABILITY

Services are produced and consumed simultaneously The customers and the service providers are parts of the service Customers-providers relationship is an important feature in services

VARIABILITY

Because services depend on who provides them, they are highly variable in results To reduce the variability:
Hire & train good employees Standardize the performance Monitor customer satisfaction

PERISHABILITY

When demand fluctuates, services firms have problems since services can not be stored The strategies to match demand & supply:

Differential pricing Complementary services Reservation systems Part-time employees Increase customer participation Shared services
8

Marketing Strategies for Services

INTERNAL MARKETING EXTERNAL MARKETING INTERACTIVE MARKETING

5 Determinants of Service Quality

RELIABILITY RESPONSIVENESS ASSURANCE EMPATHY TANGIBLES

10