1. Chapter Eleven Strategies for Services and Relationship Marketing

2. Objectives bDefine “services” bExplain the characteristics of services bUnderstand service demand management bUnderstand standardization & customization bExplain importance of services bDiscuss relationship building bReview Internet’s impact on customer service

3. Service Defined bInstrumental activity bFor consumption bConsumer participation bNo ownership

4. Service Characteristics & Strategies: Intangibility bCannot see or feel bCannot smell, hear, or taste bStress symbolic clues (Mr. Goodwrench) bAssociate tangible symbol with service bTangible cues like membership cards “You’re in good hands with Allstate.”

5. Service Characteristics & Strategies: Perishability bCannot be stored bLost sale = lost income bDemand management bForecasting bSupply management bPricing adjustments

6. Service Characteristics & Strategies: Inseparability Tangible products ProductionSaleConsumption Time Production Sale Consumption Intangible products bProduction orientation bPersonnel management

7. Service Characteristics & Strategies: Variability bProvided by people bInherent variance bStandardization bPersonnel selection bTraining bAutomation bCustomization

8. Total Service Product bParticipant demeanor bPhysical evidence bDelivery process Clean new cars Airport transportation Uniformed employees Special membership cards Easy check in & check out Special use vehicles (vans, convertibles, sports cars, sport utility cars, etc.)

9. Gap Analysis 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

10. Determinants of Service Quality bAccess bCommunication bCompetence bCourtesy bReliability bCredibility Service Award

11. Relationship Marketing Structural Relations Financial Relations Financial Relations Social Relations Social Relations

12. How the Internet can Improve Customer Service bAutomation bInteraction bFAQ’s be-mail bSpeed bCosts bPersonalization

13. Successful Relationships bRelationship commitment bLong-term vs. short-term oriented bPrice not only factor bTrust bReliability bIntegrity

14. Internal Marketing bEmployee directed P.R. bRecognition bEmpowerment Employee of the Month

15. Review bDefine “services” bExplain the characteristics of services bUnderstand service demand management bUnderstand standardization & customization bExplain importance of services bDiscuss relationship building bReview Internet’s impact on customer service