MARKETING MIX CLASSIFICATION OF SERVICES EXPECTATIONS OF CUSTOMERS

Expanded Mix for Services -The 7 Ps

Product Price Place Promotion People Process Physical Evidence

PRODUCT ELEMENTS
All Aspects of Service Performance that Create Value Core product featuresboth tangible and intangible elements Bundle of supplementary service elements Benefits delivered to customers Guarantees

PRICE

Traditional Pricing Tasks Selling price, discounts, premiums Margins for intermediaries (if any) Credit terms Identify and Minimize Other Costs Incurred by Users Additional monetary costs associated with service usage (e.g., travel to service location, parking) Time expenditures, especially waiting Unwanted mental and physical effort

PROMOTION AND EDUCATION

Informing, Educating, Persuading, and Reminding Customers Marketing communication tools media elements (print, broadcast, outdoor, retail, Internet, etc.) personal selling, customer service sales promotion publicity/PR Viral Marketing

PLACE AND TIME

Delivery Decisions: Where, When, and How Geographic locations served Physical channels Electronic channels Channel partners/intermediaries Service schedules

PHYSICAL ENVIRONMENT
The environment in which the service is delivered and where the firm and customer interact and any tangible components that facilitates performance or communication of the service Create and maintaining physical appearances buildings/landscaping interior design/furnishings vehicles/equipment staff grooming/clothing sounds and smells other tangibles

PROCESS
The actual procedures, mechanisms and flow of activities by which the service is delivered the service delivery and operating systems Design of activity flows Number and sequence of actions for customers Role of contact personnel Role of technology, degree of automation

PEOPLE All human actors who play a part in service delivery and thus influence the buyers perceptions: namely, the firm's Personnel the customer and other customers

CLASSIFICATION OF SERVICES
What is the Nature of the Service Act?
TANGIBLE ACTS

Who or What is the Direct Recipient of the Service?

DIRECTED AT PEOPLE DIRECTED AT POSSESSIONS

People Processing
(Services directed at peoples bodies)

Possession Processing
(Services directed at Physical possessions)

e.g., airlines, hospitals, haircutting, restaurants hotels, fitness centers

INTANGIBLE ACTS

e.g., freight, repair, cleaning, landscaping, retailing, recycling

(Services directed at peoples mind)

Mental Stimulus Processing

Information Processing
(directed at intangible assets)

e.g., broadcasting, consulting, education, psychotherapy

e.g., accounting, banking, insurance, legal, research

Gaps Model of Service Quality

Expected Service

CUSTOMER
Customer Gap
Perceived Service

COMPANY
GAP 1 GAP 3

Service Delivery Customer-Driven Service Designs and Standards

External Communications GAP 4 to Customers

GAP 2
Company Perceptions of Consumer Expectations

Gaps Model of Service Quality

CUSTOMER
Customer Gap

Expected Service

Perceived Service
Service Delivery External Communications GAP 4 to Customers

COMPANY
GAP 1 GAP 3

Customer-Driven Service Designs and Standards

GAP 2
Company Perceptions of Consumer Expectations

Customer expectations
Belief about service delivery that function as standards or reference points against which performance is judged.

LEVELS OF EXPECTATIONS
Desired service: The level of service the Customer hopes to receive-the wished for Level of performance.

Desired Service

Adequate Service

Adequate service: The level of service the Customer will accept.

The Zone of Tolerance

Desired Service

Zone of Tolerance

Adequate Service

The extent to which customers recognize and are willing to accept this variation is called Zone of Tolerance.

Zones of Tolerance for Different Service Dimensions

Desired Service

Level of Expectation

Zone of Tolerance
Adequate Service

Desired Service

Zone of Tolerance Adequate Service

Most Important Factors

Least Important Factors

Factors structuring the Desired Service

Personal Service Philosophy

Desired Service
Personal Needs

Zone of Tolerance Adequate Service

Factors That Influence Adequate Service

Transitory Service Intensifiers

Desired Service
Perceived Service Alternatives

Zone of Tolerance Adequate Service

Self-Perceived Service Role

Situational Factors

Factors that Influence Desired and Predicted Service

Predicted service: The level of service customers believe they are likely to get
Explicit Service Promises

Implicit Service Promises

Desired Service

Word-of-Mouth

Zone of Tolerance Adequate Service

Past Experience

Predicted Service

A MODEL OF CUSTOMER SERVICE EXPECTATIONS

Explicit Service Promises

Transitory Service Intensifiers

Implicit Service Promises Perceived Service Alternatives

Desired Service
Self-Perceived Service Role

Word-of-Mouth

Zone of Tolerance Adequate Service

Past Experience

Situational Factors

Predicted Service

 WHAT DO YOU DO IF CUSTOMER EXPECTATIONS ARE UNREALISTIC? HOW DO YOU EXCEED CUSTOMER SERVICE EXPECTATIONS? HOW DO YOU STAY AHEAD OF COMPETITION IN MEETING CUSTOMER EXPECTATIONS?