Professional Documents
Culture Documents
Chap 001
Chap 001
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These PowerPoint slides contain selected exhibits, figures, and tables from the chapters as well as objectives for the chapters. For some chapters, we include extra lecture slides and in-class exercises that we have compiled and used in our classes. The lecture slides are not intended to provide full outlines or complete lectures for the chapters, but rather may be used selectively to enhance class sessions.
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Part 1
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Introduction to Services
What are services? Why services marketing? Service and Technology Characteristics of Services Compared to Goods Services Marketing Mix Staying Focused on the Customer
McGraw-Hill/Irwin
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Professional Services
accounting, legal, architectural
Financial Services
banking, investment advising, insurance
Hospitality
restaurant, hotel/motel, bed & breakfast ski resort, rafting
Travel
airline, travel agency, theme park
Others
hair styling, pest control, plumbing, lawn maintenance, counseling services, health club, interior design
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Tangibility Spectrum
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Customer
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Intangibility
Heterogeneity
Perishability
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Implications of Intangibility
Services cannot be inventoried Services cannot be easily patented Services cannot be readily displayed or communicated Pricing is difficult
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Implications of Heterogeneity
Service delivery and customer satisfaction depend on employee and customer actions Service quality depends on many uncontrollable factors There is no sure knowledge that the service delivered matches what was planned and promoted
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Implications of Perishability
It is difficult to synchronize supply and demand with services Services cannot be returned or resold
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Boeing
Kodak
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Locomotives
total annual cost of rail operations: $29 billion
Automobiles
average annual household expenditure: $6,064
network administration network technical support network equipment nonproductive operations by end user (downtime, file management, etc.) administration
80%
60%
40%
20%
0%
Source: GartnerGroup, Association of American Railroads, Federal Highway Administration Office of Highway Information Management. (Railroad expenditures are for Class 1 railroads.)
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People
All human actors who play a part in service delivery and thus influence the buyers perceptions: namely, the firms personnel, the customer, and other customers in the service environment.
Physical Evidence
The environment in which the service is delivered and where the firm and customer interact, and any tangible components that facilitate performance or communication of the service.
Process
The actual procedures, mechanisms, and flow of activities by which the service is deliveredthe service delivery and operating systems.
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