SERVICE MANAGEMENT MGM 4204 Dr Mass Hareeza Ali Department of Marketing & Management Faculty of Economics & Management Universiti Putra Malaysia

Def. Service Services are deeds, processes, and performances Services are deeds, processes, and performances Services & technology Services & technology Customers & employees (support in making more effective and efficient in delivering service) Customers & employees (support in making more effective and efficient in delivering service)

Goods Vs Services Marketing Intangibility – service are performance or actions; cannot be seen, felt, tasted, or touched Intangibility – service are performance or actions; cannot be seen, felt, tasted, or touched - advertising and promotional material Heterogeneity – no two services will be precisely alike; each will have unique demands or experience Heterogeneity – no two services will be precisely alike; each will have unique demands or experience

Simultaneous Production and Consumption Most services are sold first and then produced and consumed simultaneously; goods are produced first, then sold and consumed. Most services are sold first and then produced and consumed simultaneously; goods are produced first, then sold and consumed. Customer: Affect each others’ experiences Customer: Affect each others’ experiences

Continue… Perishability – service cannot be saved, stored, resold, or returnedPerishability – service cannot be saved, stored, resold, or returned - must be creative; eg hair cut

Service Marketing Mix Traditional Marketing Mix: 4 p’s- product, price, place, and promotion. Traditional Marketing Mix: 4 p’s- product, price, place, and promotion. Expanded Mix: Additional 4 p’s – includes people, physical evidence and process. Expanded Mix: Additional 4 p’s – includes people, physical evidence and process.

Staying focused on Customer Gaps Model of Service Quality Gaps Model of Service Quality The customer Gap: Expected service – perceived service The customer Gap: Expected service – perceived service Stages in Consumer decision making and evaluation of services: Stages in Consumer decision making and evaluation of services: * Need recognition – information search –evaluation of alternatives – purchase & consumption – postpurchase evaluation

The role of Culture in Services Effects on the ways customers evaluate and use services Effects on the ways customers evaluate and use services Influences how companies and their service employees interact with customers Influences how companies and their service employees interact with customers Major area: language (verbal vs nonverbal), values and attitudes, manners, material culture, aesthetics (culture ideas abt beauty & good taste), educational & social institutions Major area: language (verbal vs nonverbal), values and attitudes, manners, material culture, aesthetics (culture ideas abt beauty & good taste), educational & social institutions

Customer Expectations Desired service: the level of service the customer hope to receive Desired service: the level of service the customer hope to receive Adequate service: the level of service the customer will accept Adequate service: the level of service the customer will accept

Factors influence customer expectations of service Sources of desired service expectations: personal needs, derived service expectations, personal service philosophy Sources of desired service expectations: personal needs, derived service expectations, personal service philosophy Sources of adequate service expectations; transitory service intensifiers, perceived service alternatives, self-perceived service role and situational factors, predicted service Sources of adequate service expectations; transitory service intensifiers, perceived service alternatives, self-perceived service role and situational factors, predicted service

Internal/external factors influence desired service & predicted service expectations Explicit service promises: personal (eg salespeople)/nonpersonal (eg advertising, brochures) statements Explicit service promises: personal (eg salespeople)/nonpersonal (eg advertising, brochures) statements Implicit service promises: quality cues-prices and tangibles associated with service Implicit service promises: quality cues-prices and tangibles associated with service Word of mouth Word of mouth Past experience Past experience

What determines Customer satisfaction Product and service features Product and service features Consumer emotions Consumer emotions Attributions for service success or failure Attributions for service success or failure Perceptions of equity or fairness Perceptions of equity or fairness Other consumers, family members and coworkers Other consumers, family members and coworkers

Service quality dimensions Reliability: accurate and dependably Reliability: accurate and dependably Responsiveness: prompt service Responsiveness: prompt service Assurance: trust and confident Assurance: trust and confident Empathy: caring, attention to customers Empathy: caring, attention to customers Tangibles: appearance of physical facilities, equipment, writing material Tangibles: appearance of physical facilities, equipment, writing material

Types of service encounters Remote encounters: ATM Remote encounters: ATM Phone encounters: Insurance Comp. Phone encounters: Insurance Comp. Face to face encounters: theme parks Face to face encounters: theme parks

Service research program Qualitative and quantitative research Qualitative and quantitative research Both perception and expectations of customers Both perception and expectations of customers Balances the cost of research and the value of information Balances the cost of research and the value of information Statistical validity when necessary Statistical validity when necessary Measures priorities or importance Measures priorities or importance Appropriate frequency Appropriate frequency Loyalty or behavioral intentions Loyalty or behavioral intentions

SERVQUAL Survey Relationship surveys: customers with the company including service, product, and price. Relationship surveys: customers with the company including service, product, and price.

Assignment Meeting dateline Meeting dateline Take home quiz Take home quiz