Marketing Management_FS15

SERVICE AS PRODUCT

Reference: Christine Nordhielm, Marta Depena-Baron, Marketing Management: The Big Picture, Wiley Global Education, 2013. Philip Kotler and Gary Armstrong, Principles of Marketing (2014, 15th edition)

Services vs. Hard Goods

■ Intangibility: services cannot be physically touched.

■ Inventory Issues: services cannot be stored.

■ Performance Aspects: production and consumption occur simultaneously.

■ Humans and Service Delivery: Services are typically performed by humans.

Zone of Tolerance

Customers service experiences within the zone of tolerance — customer satisfaction

Source:  Figure  9.3,  page  253,  Marketing  Management:  The  Big  Picture,  Christine  Nordhielm,  Marta  Depena-­‐Baron,  Wiley  Global  Education,  2013.    

Customer Service Level

vs

Source:  left,  http://www.tnetnoc.com/public/ANS/Dynaflex/Images/Flights/OZ_Asiana_Interior-­‐2_345x225.jpg,  right,  http://bnbmag.com/bbs/data/board/bnbmanagement/file_in_body/1/southwest2803.jpg  

Builders Non-Builders

IKEA Effect

■  Bidding for boxes:

■  Builders (M = $0.78) > non-builders (M = $0.48)

■  Liking for boxes:

■  Builders (M=3.81) > non-builders (M=2.50)