Mark App Class 10

8/2/2019 Mark App Class 10

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The service sector The services sector has been growing at a rate of 8%

per annum in recent years

More than half of our GDP is accounted for from theservices sector

This sector dominates with the best jobs, best talentand best incomes


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-Theodore Levitt-


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It is the part of the product or the full product forwhich the customer is willing to see value and pay forit.


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What is a service? It is intangible.

It does not result in ownership.

It may or may not be attached with a physical product


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Difference between physical

goods and servicesPhysical goods Services

tangible intangible

homogeneous heterogeneous

Production and distribution areseparated from consumption

Production, distribution andconsumption are simultaneous

processes

A thing An activity or process

Core value processed in factory Core value produced in the buyer-sellerinteraction

Customers do not participate in the

production process

Customers participate in production

Can be kept in stock Cannot be kept in stock

Transfer of ownership No transfer of ownership


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Most products have a service

componentThey could be

Equipment based

People based varying skill levels


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Services could meet Personal needs haircuts, tution, massage parlours

Business needs courier services, office cleaning

services, delivering fresh flowers


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Characteristics of services Intangibility

Inseparability

PerishabilityVariability


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The three additional Ps of

Service Marketing People

Physical evidence

Process


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Differentiation in services Offering

Faster and better delivery

Image


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Managing Service quality Gap between management perceptions and

consumer expectations

Gap between management perceptions and servicequality specifications

Gap between service quality specifications andservice delivery

Gap between service delivery and externalcommunication

Gap between expected service and perceivedservice


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Determinants of service quality Reliability delivering on promises

Responsiveness willing to help

Assurance inspiring trust and confidence Empathy individualising customers

Tangibles- physical representation


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Moments of truth It is the customer service encounter

Every positive or negative experience of the consumer

would have fall-out on the overall service experience


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In services, the last experience

remains uppermost in your mind.

Therefore, it is not enough to begood, you have to be consistently

good


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Services Monitoring Continuous auditing of competitor service levels

versus own company

Importance - performance analysis


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Importance Performance

Analysis

Concentrate

here

Keep up the

good work

Low priority Possible overkill

I

M

P

O

R

T

A

C

E

P E R F O R M A N C E


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When customers visit a service

establishmentTheir satisfaction will be influenced by

Encounters with service personnel

Appearance and features of service facilities exteriorand interior

Interactions with self service equipment

Characteristics and behaviour of other customers


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Customer Service Expectations Desired Service the wished for service

Adequate Service the service that would beacceptable


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Difference between the desired service and theadequate service


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Service Encounter Themes Recovery

Adaptability

Spontaneity Coping


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RecoveryDont Ignore customer

Blame customer

Leave customer to fendfor himself

Downgrade

Act as if nothing iswrong

pass the buck

Do

Acknowledge problem

Explain causesApologise

Compensate/upgrade

Lay out options

Take responsibility


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AdaptabilityDont Promise and fail to keep

them

Show unwillingness totry

Embarrass the customer

Laugh at the customer

Avoid responsibility

Do

Recognise theseriousness

Acknowledge

Anticipate

Accommodate

Adjust

Explain rules/policies


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SpontaneityDont

Exhibit impatience

Yell/laugh/swear Steal from customers

Discriminate

Ignore

Do

Take time

Be attentiveAnticipate needs

Listen

Provide information

Show empathy


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CopingDont

Take customersdissatisfactionpersonally

Let customersdissatisfaction affect

others

Do

Listen

Try to accommodate Explain

Let go of the customer


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Types of complainers Passives

Voicers

IratesActivists


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Customer complaints It pays to resolve customer complaints

On an average only 5 % dissatisfied customers

complain. Others simply go over to the competitorA satisfied consumer speaks to an average of 3

people on his her experience

A dissatisfied consumer gripes to on an average 11persons about his/her unpleasant experience

Mark App Class 10

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