Chapter 5, Lesson 2

pages 139-148

Chapter 5: Product Strategies

Lesson 2: Service Strategies

Carol Borres
Mark 01
 Learning Objectives

• To know the characteristics of service-oriented

businesses

• To be armed with key strategies for improving

service quality

Carol Borres
Mark 01
 Goods vs. Services
➢ Goods refer to tangible
products that consumers can
actually observe with their
senses; they are objects with
physical manifestations and
attributes that can be detected
by the senses.
➢ Services refer to intangible
offerings that are abstract in
nature and cannot be observed
with the senses; in fact, a key
characteristic of services is that
the act of delivery itself is the
product.

Carol Borres
Mark 01
Characteristics of Services

• Intangible – customers are asked to buy a

promise of good result
• Inseparable from the service providers –
consumer perception of a service provider
becomes their perception of the service itself
• Perishable – they are created and consumed at
the time of purchase, so providers cannot
maintain inventories

Carol Borres
Mark 01
 Characteristics of Services
• Heterogeneous – cannot be standardized, though firms
attempt to promise certain qualities, amenities or results
• Buyers play important roles in the creation and
distribution of services – interactions between buyer
and seller/provider are often required at the production
and distribution stages
• Wide variations in service standards – the quality and
standards can vary greatly among service providers in
the same industry

Carol Borres
Mark 01
 5 Variables that
Determine Service
Quality

Carol Borres
Mark 01
 1. Tangibles – the physical evidence
5 Variables that
Determine Service 2. Reliability – consistency of performance
Quality and dependability
3. Responsiveness – the readiness of
employees to serve
4. Assurances– the confidence communicated
by the service provider
5. Empathy – the service provider’s efforts to
understand the customer’s needs and then
individualize the service

Carol Borres
Mark 01
 Types of Service Processes
➢ Services can be enacted through the use of tangible objects (i.e., the service
is still intangible, but it is served via tangible tools) or it can be purely
intangible.
➢ Services can also either be directed toward the “processing” of people or
services can be applied to the processing of people’s possessions.
Directed at People Directed at Possessions
People Processing Possession Processing
Tangible Acts i.e. airlines, hospitals, hotels, i.e. freight, repair, cleaning,
restaurants, spa, salons landscaping, retail, delivery
Mental Stimulus Processing Information Processing
i.e. broadcasting, consulting, i.e. accounting, banking,
Intangible Acts
education, therapy, tutorial insurance, legal, research,
programming

Carol Borres
Mark 01
Service elements that should be taken into consideration in order
to build an excellent overall customer experience

• Personnel Selection and Training

✓ For services that are delivered through personnel,
great attention should be given to the selection and
training of sales and front-liners as they serve as
the primary conduits between the business and the
clients.
✓ Personnel must be trained to converse confidently
with the target market and to speak their language
as best they can.
✓ Personality will also have to be taken into account.

Carol Borres
Mark 01
Service elements that should be taken into consideration in order
to build an excellent overall customer experience

• User Interface
✓ For services that are delivered through
automated means, such as ATMs and
online services, the quality of the
service will be assessed based on the
ease of use of the service.

Carol Borres
Mark 01
 Service elements that should be taken into consideration in order
to build an excellent overall customer experience

• Points of Contact
✓ All points of contact or avenues for
interacting with customers should be
managed and controlled including
the atmosphere of the service venue,
the quality of the seating in waiting
areas, the type of music played, and
perhaps even the scent in the air.

Carol Borres
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 Service elements that should be taken into consideration in order
to build an excellent overall customer experience

• Tangible Mementos
✓ can be in the form of tickets,
souvenir programs, thank you
cards, small giveaways, gift bags
with the branding of the service, or
even complementary low-cost
items, that can help to stimulate
recollection among consumers and
better yet, remind them about
coming back for more

Carol Borres
Mark 01
 Individual Task
Different Types of Products in my House

• Look for different items around your house

and identify different types of consumer photo photo
products (convenience product, shopping
product, specialty product, unsought Convenience Product Shopping Product

product) and a service memento.

photo photo
• Snap a picture of the products with your
selfie and make a photo collage with Specialty Product Unsought Product
proper labels.
photo photo
• Save the collage into one poster (png
format) and upload it to the link that I will Service Memento Your Name
provide in our fb group. Block __

Carol Borres
Mark 01