1 Marketing Colleges and Universities from a Services Perspective CASE VI Presented by Tom Hayes Ph.D.

2 Three Thoughts You can fight change, invest in change or create change We are in the business of “recruiting successful alumni” We are providing a “total educational experience”

3 Changes in the Service Sector 1)Shift in the Base of World Economies 2)Your customer's Expectations Are Shifted by Forces Outside Your Industry 3)Technology, Technology, Technology!

4 Seven P’s of Service  Product Quality Features Options Style Brand Packaging Services Warranties Traditional four P’s of Marketing Payment Period Value Proposition  Price List Price Discounts

5 Place Channels Coverage Location Promotion Advertising Personal Selling Sales Promotion Publicity Direct Marketing Seven P’s of Service

6 Physical Evidence Arrangements of objects Materials used Shapes/lines Lighting/shadows Training and rewarding systems 3 more P’s Process Design Policies & Procedures Delivery cycle time Participant Service Provider Customer being serviced Color Temperature Noise Other employees and customers Seven P’s of Service

7 “There are no such things as service industries. There are only industries whose service components are greater or less than those of other industries. Everybody is in service.” Theodore Leavitt “If you are not servicing the customer, you had better be servicing someone who is.” Albrecht & Zemke

8 Differences Between Services and Packaged Goods Intangibility Inseparability Variability Perishability Trust is a key component The customer participates in the process

9 In the next decade customer satisfaction will surpass profits as the key performance measures. (Study by Korn/Ferry International)

10 Performance–Attitude–Behavior Model Service or product contact As expected SatisfiedVulnerable Much better than expected “Delighted”Loyal Worse than expected Dissatisfied Exit Existing customer attitudes

11 Zone of Tolerance Desired Service Adequate Service It is all about expectations! Source: Zeithaml & Bihner, 1996

12 What Creates Expectations What you tell them What you imply Personal needs A sense of urgency What others demand of them Word of mouth Options Past experience

13 Other’s Definition Quality = Zero Defects – Deming Conformance to specifications – Crosby “Attention to detail and exceeding customer expectations” – Disney

14 The Customer’s Definition – Berry et al Reliability –Consistency –Dependability –Honor your promises Responsiveness –Willingness/readiness of employees to provide service –Timeliness of service

15 Competence –Possession required skills and knowledge –Of contact personnel –Of operational support personnel –Research capability of firm Access –Approachability and ease of contact

16 Courtesy –Politeness –Respect –Consideration –Friendliness Communication –Keeping customers informed in language they understand –Listening to customers

17 Credibility –Trustworthiness –Believability –Honesty Security –Freedom from danger, risk or doubt –Physical safety –Financial –Confidentiality

18 Understanding the Customer –The marketing concept –Specific customer requirements –Individualized attention –Recognizing the regular customer Tangibles –Physical evidence of service Facilities Personnel Other customers Tools or equipment

19 Key Factors: Lack of market segmentation Insufficient marketing research Inadequate use of marketing research Lack of interaction between management and customers Insufficient communication between contact employees and managers Breakdown in Service Quality Customer Expectations Perceptions of Customer Expectations Source of For Service Gaps: Zeithaml, Berry & Parasuraman, GAP 1 Service Gaps

20 Key Factors: Lack of customer-defined standards and process management Absence of formal process for setting service quality goals Perception of infeasibility — that customer expectations cannot be met Inadequate management commitment to service quality Perceptions of Customer Expectations Service Quality Standards Source of For Service Gaps: Zeithaml, Berry & Parasuraman, GAP 2 Service Gaps Breakdown in Service Quality

21 Key Factors: Role ambiguity among employees Role conflict among employees Poor employee - technology - job fit Inappropriate evaluation / compensation system lack of perceived control (contact personnel!) Lack of teamwork Service Quality Standards Service Delivery Source of For Service Gaps: Zeithaml, Berry & Parasuraman, GAP 3 Breakdown in Service Quality Service Gaps

22 Service Gaps Key Factors: Inadequate management of expectations Overpromising in advertising Overpromising in personal selling Inadequate communication among departments/functions Differences in policies and procedures across branches or units Service Delivery External Communications to Customers Source of For Service Gaps: Zeithaml, Berry & Parasuraman, GAP 4 Breakdown in Service Quality

23 Thank you!