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Transcript of Kotler Services
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Designing and
Managing Services
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13-2
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Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hal l 13-3
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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Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hal l 13-4
Service Sectors
Government
Private nonprofit
Business Manufacturing
Retail
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Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hal l 13-5
Categories of Service Mix
Pure tangible good
Good with accompanying services
Hybrid Service with accompany goods
Pure service
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Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hal l 13-6
Service Distinctions
Equipment-based or people-based
Service processes
Clients presence required or not Personal needs or business needs
Objectives and ownership
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Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hal l 13-7
Distinctive Characteristics
of Services
Intangibility
Inseparability
Variability Perishability
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Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hal l 13-8
Physical Evidence and
Presentation
Place
People
Equipment Communication material
Symbols
Price
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Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hal l 13-9
How to Increase Quality Control
Invest in good hiring and training
procedures
Standardize the service-performance
process
Monitor customer satisfaction
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Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hal l 13-10
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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Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hal l 13-11
Improving Service Quality
Listening
Reliability
Basic service
Service design
Recovery
Surprising
customers
Fair play
Teamwork
Employee research
Servant leadership
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Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hal l 13-12
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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Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hal l 13-13
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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Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hal l 13-14
Gaps that Cause Unsuccessful
Service Delivery
Gap between consumer expectation andmanagement perception
Gap between management perception and
service-quality specifications Gap between service-quality specificationsand service delivery
Gap between service delivery and external
communications Gap between perceived service and
expected service
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Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hal l 13-15
Determinants of Service Quality
Reliability
Responsiveness
Assurance Empathy
Tangibles
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Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hal l 13-16
Best Practices
Strategic Concept
Top-Management Commitment
High Standards Self-Service Technologies
Monitoring Systems
Satisfying Customer Complaints Satisfying Employees
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Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hal l 13-17
Developing Brand Strategies
for Services
Choosing brand elements
Establishing image dimensions
Devising branding strategy
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Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hal l 13-18
Customer Worries
Failure frequency
Downtime
Out-of-pocket costs
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Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hal l 13-19
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
