Professional Documents
Culture Documents
Service is any activity or benefit that one party can offer to another that is essential intangible
and does not result in the ownership of anything.
1. Intangibility: Service cannot be seen, taste, touch, fell, and smell before purchase.
3. Variability or heterogeneity: Service quality depend on who provide the service where, when,
and how. If the man is different then quality will be different. For example, different restaurant
service will be different.
Element of services:
2. Physical evidence: The place where service will be delivered must have physical evidence.
3. Delivery process: How do service actually delivered. Delivery process depends on overall
marketing program.
3. Managing the quality of a service delivered to customer and setting their expectation.
4. Managing communication.
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1. Problem recognition.
4. Purchase or consumption.
Intangibility is the primary sources from which the other three characteristics emerged.
Intangibility is a distinguishing characteristic of services that makes them unable to be touched
or sensed in the same manner as physical goods.
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1. Emphasis on selecting and training public contact personnel.
2. Consumer management.
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Ethical issues in services marketing:
Ethics are commonly defined as a branch of philosophy dealing with what is good and bad and
with moral duty and obligation; the principles of moral conduct governing an individual or
group.
Business ethics comprises moral principles and standards that guide behavior in the world of
business.
In more specific terms, consumer vulnerability to ethical misconduct within the service sector
can be attributed to several sources, including the following—
3. Some services have a significant time lapse between performance and evaluation.
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III. The individual focuses mare in others as opposed to personal gains.
IV. “Right” is based on the individual’s duty to society.
V. “Right” is based on basic rights, values, and legal contracts.
VI. “Right” is a set of universal ethical principles that everyone should adhere to.
2. Personal values
3. Corporate culture
4. Cultural differences
5. Organizational structure
6. Opportunity
7. Reward systems
8. Significant others
9. Competitive environment
1. Employee socialization.
2. Standards of conduct.
3. Corrective control.
4. Leadership training.
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Pricing
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Service pricing related issues: (Lovelock, p-365)
a. How much should be charged for the service?
b. What should be the basis of price?
c. Who should collect payment?
d. Where should payment be made?
e. when should payment be made?
f. How should payment be made?
g. How should price be communicated to the target market?
b. Relationship pricing: Strategies that encourage the customer to expand his or her
dealings with the provider. Two types:
1. Price bundling: The practice of marketing two or more products and/services in a
single package at a single price.
2. Mixed bundling: Price bundling t5echnique that allows customers to either buy
service A and service B together of purchase one service separately.
2. Position the firm’s service offering in the consumer’s evoked set of alternatives.
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Way of communication or promotion. (page no. 192, Hoffman)
1. Product differentiation:
2. Personnel differentiation:
3. Image differentiation:4. Service differentiation:
Features competence Symbols Delivery (Speed, accuracy)
Performance courtesy Written, audio, visual media.
Installation
Conformance credibility Atmosphere Customer training
Durability reliability Events Consulting service
Reliability responsiveness Repair
Repair ability communication Miscellaneous service
Style
design
1. Customer must be aware that the system has been changed or that a new alternative exists.
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2. Each customer needs to be educated as to how to use the new system properly.
3. Customers must be encouraged to use the new approach a sufficient number of times to
become comfortable with it and to recognize its benefits.
-----Excepted service
Why service fail or Types of service failure: (page no. 352, Hoffman)
a) Unavailable service.
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a) Special needs.
b) Customer performance.
c) Customer error.
d) Disruptive other.
a) Level of attention.
b) Unusual action.
c) Cultural norms.
d) Gestalt.
e) Adverse conditions.
Customer complaints
1. Instrumental complaints.
2. Non-instrumental complaints.
3. Ostensive complaints.
1. Voice.
2. Exit.
3. Retaliation.
1. Improper buying.
4. Habitual complainers.
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How to control complain? Or handling complains. (Page no. )
3. Combination of both.
1. Direct measures: Direct measures are the proactive collection of customer satisfaction data
through customer satisfaction surveys.
Desired service expectations are developed as a result of six different sources. These are......
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a). Derived expectations.
2. Personal needs.
The other four factors that influence desired service expectations also
influence predicted service expectations. (page no. 315, Hoffman)
6. Past experience.
Adequate service relicts the level of service the consumer is willing to accept and is influenced
by five factors.
1. Transitory service.
4. Situation factors.
5. Predicted service.
Service quality
1. Service gap: Service gap is the distance between a customer’s expectation of a service and
perception of the service quality delivered.
2. Knowledge gap: Knowledge gap is the difference between what consumers expect of a
service and what management perceives the consumers to expect.
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3. Standards gap: Standard gap is the difference between what management perceives
consumers to expect and the quality specifications set for service delivery.
4. Delivery gap: Delivery gap is the difference between the quality standards set for service
delivery and the actual quality of service delivery.
5. Communications gap: Communications gap is the difference between the actual quality of
service delivered and the quality of service described in the firm’s external communications.
Customer expectations
Knowledge gap
Mgt. perception of
customer expectations
Standard gap
Standards specifying Retailer communications
service to be delivered about services
Service
Communication gap
Actual service delivered
Customer perception of
service
1. Research orientation.
2. Upward communication.
3. Levels of management.
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Customer retention
Customer retention refers to focusing the firm’s marketing efforts toward the existing customer
base. It is the process to build up the long term relationship with customer.
1. Maintain the proper perspective: (need to know customer need and wants)
2. Remember customers between calls: (providing card in any occasion like- anniversary day,
happy friendship day, happy New Year, PHOELA BOISHAK, etc.
b) Refraining from making disparaging remarks about other customers and competitors.
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