1. Designing and Managing Services13
Designing and Managing Services
Marketing Management, 13th ed

2. Chapter Questions
How do we define and classify services and how do they differ from goods?
How do we market services?
How can we improve service quality?
How do services marketers create strong brands?
How can goods marketers improve customer support services?
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3. What is a Service?
A service is any act of performance that one party can offer another that is essentially intangible and does not result in the ownership of anything; its production may or may not be tied to a physical product.
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4. Service Sectors Government Private nonprofit Business Manufacturing
Retail
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5. Categories of Service Mix
Pure tangible good
Good with accompanying services
Hybrid
Service with accompany goods
Pure service
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6. Service Distinctions Equipment-based or people-based Service processes
Client’s presence required or not
Personal needs or business needs
Objectives and ownership
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7. Distinctive Characteristics of Services
Intangibility
Inseparability
Variability
Perishability
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8. Physical Evidence and Presentation
Place
People
Equipment
Communication material
Symbols
Price
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9. How to Increase Quality Control
Invest in good hiring and training procedures
Standardize the service-performance process
Monitor customer satisfaction
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10. Matching Demand and Supply
Demand side
Differential pricing
Nonpeak demand
Complementary services
Reservation systems
Supply side
Part-time employees
Peak-time efficiency
Increased consumer participation
Shared services
Facilities for future expansion
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11. Improving Service Quality
Listening
Reliability
Basic service
Service design
Recovery
Surprising customers
Fair play
Teamwork
Employee research
Servant leadership
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12. Solutions to Customer Failures
Redesign processes and redefine customer roles to simplify service encounters
Incorporate the right technology to aid employees and customers
Create high-performance customers by enhancing their role clarity, motivation, and ability
Encourage customer citizenship where customers help customers
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13. Table 13.1 Factors Leading to Customer Switching Behavior
Pricing
Inconvenience
Core Service Failure
Service Encounter Failures
Response to Service Failure
Competition
Ethical Problems
Involuntary Switching
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14. Gaps that Cause Unsuccessful Service Delivery
Gap between consumer expectation and management perception
Gap between management perception and service-quality specifications
Gap between service-quality specifications and service delivery
Gap between service delivery and external communications
Gap between perceived service and expected service
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15. Determinants of Service Quality
Reliability
Responsiveness
Assurance
Empathy
Tangibles
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16. Best Practices Strategic Concept Top-Management Commitment
High Standards
Self-Service Technologies
Monitoring Systems
Satisfying Customer Complaints
Satisfying Employees
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17. Developing Brand Strategies for Services
Choosing brand elements
Establishing image dimensions
Devising branding strategy
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18. Customer Worries Failure frequency Downtime Out-of-pocket costs
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19. Table 13.4 Top Customer Service Providers
USAA
Four Seasons Hotels
Cadillac
Nordstrom
Wegman Food Markets
Edward Jones
Lexus
UPS
Enterprise Rent-a-Car
Starbucks
Ritz-Carlton
Amica Insurance
Southwest Airlines
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