1 2 Marketing Management SECTION 1 7th Edition Marketing of Services menu SECTION 1 Chapter Twelve Services Service Features Unconditional Guarantees Client Value Perception Determinants of Service Quality Customers Satisfaction Measurement Quality Elements Internal Marketing Marketplace Obstacles The Service Challenge The Authors C H A P T E R T W E L V E Marketing Management 7th Edition J. Paul Peter James H. Donnelly, Jr. 1 2 Marketing of Services McGraw-Hill/Irwin © 2004 The McGraw-Hill Companies, Inc., All Rights Reserved.

1 2 SECTION 1 Services Service Products menu SECTION 1 Chapter Twelve Services Service Features Unconditional Guarantees Client Value Perception Determinants of Service Quality Customers Satisfaction Measurement Quality Elements Internal Marketing Marketplace Obstacles The Service Challenge The Authors Services Service Products > Such as a bank loan or home security, they are intangible or at least substantially so Services > Activities by sellers and others that accompany the sale of a product and that aid in its exhange or its utilization 1 2

1 2 SECTION 1 Service Features menu SECTION 1 Chapter Twelve Services Service Features Unconditional Guarantees Client Value Perception Determinants of Service Quality Customers Satisfaction Measurement Quality Elements Internal Marketing Marketplace Obstacles The Service Challenge The Authors Service Features Intangibility– without physical dimensions or characteristics Inseparability- service and seller are inseparable Perishability and Fluctuating Demand – seasonal, days, time of day, vacant seats, waiting time on phone, etc. Highly Differentiated Marketing Systems – varies highly depending on business Client Relationship – Similar to customer relationship but typically more intense 1 2

1 2 SECTION 1 Unconditional Guarantees Effective when: Prices are high menu SECTION 1 Chapter Twelve Services Service Features Unconditional Guarantees Client Value Perception Determinants of Service Quality Customers Satisfaction Measurement Quality Elements Internal Marketing Marketplace Obstacles The Service Challenge The Authors Unconditional Guarantees Effective when: Prices are high The negative consequences of unsolved problems are high Services are highly customized Brand name recognition not achieved by conventional means Buyer resistance/caution is high 1 2 from Hart, Schlessinger and Maher

1 2 SECTION 1 Client Value Perception Observe the gap between . . . menu SECTION 1 Chapter Twelve Services Service Features Unconditional Guarantees Client Value Perception Determinants of Service Quality Customers Satisfaction Measurement Quality Elements Internal Marketing Marketplace Obstacles The Service Challenge The Authors Client Value Perception Observe the gap between . . . . . . consumer expectations and management perception of consumer expectations . . . management perceptions of consumer expectations and the firm’s service quality specifications . . . service quality specifications and actual service quality . . . actual service delivery and external communications about the service 1 2

1 2 SECTION 1 Determinants of Service Quality menu SECTION 1 Chapter Twelve Services Service Features Unconditional Guarantees Client Value Perception Determinants of Service Quality Customers Satisfaction Measurement Quality Elements Internal Marketing Marketplace Obstacles The Service Challenge The Authors Determinants of Service Quality Service quality rises or falls based on . . . Tangibles Reliability Responsiveness Assurance Empathy 1 2

1 2 SECTION 1 Measure Customer Satisfaction menu SECTION 1 Chapter Twelve Services Service Features Unconditional Guarantees Client Value Perception Determinants of Service Quality Customers Satisfaction Measurement Quality Elements Internal Marketing Marketplace Obstacles The Service Challenge The Authors Measure Customer Satisfaction How will you measure customer satisfaction? Understand the expectations and requirements of the customer and your firm’s ability to meet them. Determine how well your company and its major competitors are succeeding in satisfying these expectations and requirements. 1 2

menu SECTION 1 Chapter Twelve Services Service Features Unconditional Guarantees Client Value Perception Determinants of Service Quality Customers Satisfaction Measurement Quality Elements Internal Marketing Marketplace Obstacles The Service Challenge The Authors Quality Marketing and sales employees were primarily responsible for designing CSM programs and questionnaires. Top management and the marketing function championed the programs. Management involved a combination of qualitative and quantitative research methods. Evaluations included both the company’s and competitors’ satisfaction performance. 1 2

menu SECTION 1 Chapter Twelve Services Service Features Unconditional Guarantees Client Value Perception Determinants of Service Quality Customers Satisfaction Measurement Quality Elements Internal Marketing Marketplace Obstacles The Service Challenge The Authors Quality 5. Results of all research were made available to all employees. 6. Research was performed on a consistent basis. 7. Customer satisfaction was incorporated into the strategic focus of the company via the mission statement. 8. There was a commitment to increasing service quality and customer satisfaction from employees at all levels within the organization. 1 2

1 2 SECTION 1 Internal Marketing menu SECTION 1 Chapter Twelve Services Service Features Unconditional Guarantees Client Value Perception Determinants of Service Quality Customers Satisfaction Measurement Quality Elements Internal Marketing Marketplace Obstacles The Service Challenge The Authors Internal Marketing Consider the need to involve insiders in the marketing program by . . . Careful selection process in hiring frontline employees A clear, concrete message that conveys a particular strategy Significant modeling by managers An energetic follow-through process An emphasis on teaching employees to have good attitudes 1 2

1 2 SECTION 1 Marketplace Obstacles menu SECTION 1 Chapter Twelve Services Service Features Unconditional Guarantees Client Value Perception Determinants of Service Quality Customers Satisfaction Measurement Quality Elements Internal Marketing Marketplace Obstacles The Service Challenge The Authors Marketplace Obstacles Marketplace dimensions include a variety of obstacles. Consider these . . . A limited view of marketing A lack of strong competition A lack of creative management No obsolescence 1 2

1 2 SECTION 1 The Service Challenge A quest to: menu SECTION 1 Chapter Twelve Services Service Features Unconditional Guarantees Client Value Perception Determinants of Service Quality Customers Satisfaction Measurement Quality Elements Internal Marketing Marketplace Obstacles The Service Challenge The Authors The Service Challenge A quest to: constantly develop new services that will better meet customer needs improve on the quality and variety of existing services provide and distribute these services in a manner that best serves the customer 1 2

1 2 SECTION 1 The Authors menu J. Paul Peter, Ph.D. Chapter Twelve Services Service Features Unconditional Guarantees Client Value Perception Determinants of Service Quality Customers Satisfaction Measurement Quality Elements Internal Marketing Marketplace Obstacles The Service Challenge The Authors The Authors J. Paul Peter, Ph.D. University of Wisconsin – Madison 3Click image to go to author’s web site James H. Donnelly, Jr., Ph.D. University of Kentucky – Lexington 3Click image to go to author’s web site 1 2 Marketing Management 7th Edition – McGraw-Hill 3Click on the book to go to the book site PowerPoint design by Lance Fuhrer, MBA PowerPoint content by Larry Fuhrer, MBA, MBA Keller Graduate School of Management of DeVry University