1. FOR… ORGANIZATIONAL CONSUMERS CHAPTER 13 BA 303 LPC

2. ©2000 Prentice Hall ObjectivesObjectives ä Business Services Definitions & Classifications ä How Business Services Differ From Goods ä Improving Service Differentiation, Quality, & Productivity ä Improving Customer Support Services ä Marketing Mix for Business Services ä CONSULTATIVE SELLING, relationship servicing

3. ©2000 Prentice Hall FACTORS AFFECTING THE GROWTH OF B2B SERVICES ä E BUSINESS ä OUTSOURCING ä INNOVATIONS ä MANUFACTURING GROWTH

4. ©2000 Prentice Hall DIMENSIONS OF SERVICE QUALITY ä FUNCTIONAL VS VS ä TECHNICAL SERVICE

5. ©2000 Prentice Hall PureService Categories of Service Mix TangibleGoodw/ServicesMajorService w/ Goods Hybrid PureTangibleGood

6. ©2000 Prentice Hall Services (non ownership) Services (non ownership) Inseparability Services cannot be separated from their providers Inseparability Services cannot be separated from their providers Perishability Services cannot be stored for later sale or use Perishability Services cannot be stored for later sale or use Intangibility Services cannot be seen, tasted, felt, heard, or smelled before purchase Intangibility Services cannot be seen, tasted, felt, heard, or smelled before purchase Variability Quality of services depends on who provides them and when, where, and how Variability Quality of services depends on who provides them and when, where, and how

7. ©2000 Prentice Hall Services (simultaneously produced & consumed) Services (simultaneously produced & consumed) Inseparability Increase productivity of providers Inseparability Increase productivity of providers Perishability Match supply and demand Perishability Match supply and demand Intangibility Use cues to make it tangible Intangibility Use cues to make it tangible Variability Standardize service production & delivery Variability Standardize service production & delivery

8. ©2000 Prentice Hall Three Types of Marketing in Service Industries Internal marketing CompanyCustomers External marketing Employees Interactive marketing Cleaning/ maintenance services Financial/ banking services Restaurant industry

9. ©2000 Prentice Hall Marketing Mix for Service Differentiation Offer Delivery Image

10. ©2000 Prentice Hall Service-Quality Model Expected service Management perceptions of consumer expectations Marketer Consumer Gap 1 Service delivery (including pre- and post-contacts) Gap 3 Translation of perceptions to service-quality specifications Gap 2 Gap 5 Perceived service External communi- cations to consumers Gap 4 Personal needs Past experience Word-of-mouth communications

11. ©2000 Prentice Hall Determinants of Service Quality ä Reliability ä Responsiveness ä Assurance ä Empathy ä Tangibles ä Functional ä Technical

12. ©2000 Prentice Hall Service Excellence ä Strategic Concept ä Top-Management Commitment ä High Standards ä Monitoring Systems ä Satisfying Customer Complaints ä Satisfying Both Employees & Customers ä Managing Productivity

13. ©2000 Prentice Hall Service Segmentation ä Narrower Than Product Segmentation ä Focus on What the Buyer Expects Rather than What the Buyer Needs ä Adjust Service Capacity For each segment ä PIP Value Added Benefits

14. ©2000 Prentice Hall A. Concentrate hereB. Keep up the good work D. Possible overkillC. Low priority Importance-Performance Analysis Extremely important Slightly important Excellent performance Fair performance 1 2 9 11 13 12 14 3 4 5 6 7 8 10 # = Attributes

15. ©2000 Prentice Hall Complaint Resolution ä Hiring Criteria & Training for Employees ä Develop Guidelines for Fairness ä Remove Complaint Barriers ä Analyze Types & Sources of Complaints

16. ©2000 Prentice Hall LPC Reviews ä B2B Service Definitions & Classifications ä How Services Differ Goods ä Improving B2B Service Differentiation, Quality, & Productivity ä Improving Customer Support Services