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Marketing Colleges and Universities from
a Services Perspective
CASE VI
Presented byTom Hayes Ph.D.
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Three Thoughts
• You can fight change, invest in change or create change
• We are in the business of “recruiting successful alumni”
• We are providing a “total educational experience”
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Changes in the Service Sector
1) Shift in the Base of World Economies
2) Your customer's Expectations Are Shifted by Forces Outside Your Industry
3) Technology, Technology, Technology!
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Seven P’s of Service
Product• Quality• Features• Options• Style• Brand
• Packaging• Services• Warranties
Traditional four P’s of Marketing
• Payment Period• Value Proposition
Price• List Price• Discounts
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Place• Channels• Coverage• Location
Promotion• Advertising• Personal Selling
• Sales Promotion• Publicity• Direct Marketing
Seven P’s of Service
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Physical Evidence• Arrangements of objects• Materials used• Shapes/lines• Lighting/shadows
• Training and rewarding systems
3 more P’s
Process Design• Policies & Procedures• Delivery cycle time
Participant• Service Provider• Customer being serviced
• Color• Temperature• Noise
• Other employees and customers
Seven P’s of Service
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“There are no such things as service industries. There are only industries whose service
components are greater or less than those of other industries. Everybody is in service.”
Theodore Leavitt
“If you are not servicing the customer, you had better be servicing someone who is.”
Albrecht & Zemke
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Differences Between Services and Packaged Goods
• Intangibility
• Inseparability
• Variability
• Perishability
• Trust is a key component
• The customer participates in the process
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In the next decade customer satisfaction will surpass profits as the
key performance measures.
(Study by Korn/Ferry International)
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Performance–Attitude–Behavior Model
Service orproductcontact
Asexpected
Satisfied Vulnerable
Much better than
expected
“Delighted” Loyal
Worsethan
expectedDissatisfied Exit
Existingcustomerattitudes
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Zone
of
Tolerance
Desired Service
Adequate Service
It is all about expectations!
Source: Zeithaml & Bihner, 1996
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What Creates Expectations
• What you tell them• What you imply• Personal needs• A sense of urgency• What others demand of them• Word of mouth• Options• Past experience
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Other’s Definition
Quality = Zero Defects– Deming
Conformance to specifications– Crosby
“Attention to detail and exceeding customer expectations”– Disney
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The Customer’s Definition– Berry et al
• Reliability– Consistency– Dependability– Honor your promises
• Responsiveness– Willingness/readiness of employees to provide service– Timeliness of service
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• Competence– Possession required skills and knowledge– Of contact personnel– Of operational support personnel– Research capability of firm
• Access– Approachability and ease of contact
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• Courtesy– Politeness– Respect– Consideration– Friendliness
• Communication– Keeping customers informed in language they understand– Listening to customers
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• Credibility– Trustworthiness– Believability– Honesty
• Security– Freedom from danger, risk or doubt– Physical safety– Financial– Confidentiality
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• Understanding the Customer– The marketing concept– Specific customer requirements– Individualized attention– Recognizing the regular customer
• Tangibles– Physical evidence of service
• Facilities• Personnel• Other customers• Tools or equipment
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Key Factors:Lack of market segmentation
Insufficient marketing researchInadequate use of marketing research
Lack of interaction between management and customersInsufficient communication between contact employees and managers
Breakdown in Service Quality
CustomerExpectations
Perceptions ofCustomer Expectations
Source of For Service Gaps: Zeithaml, Berry & Parasuraman, 1993.
GAP1
Service Gaps
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Key Factors:Lack of customer-defined standards and
process managementAbsence of formal process for setting service quality goalsPerception of infeasibility — that customer expectations
cannot be metInadequate management commitment to service quality
Perceptions ofCustomer Expectations
Service QualityStandards
Source of For Service Gaps: Zeithaml, Berry & Parasuraman, 1993.
GAP2
Service Gaps
Breakdown in Service Quality
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Key Factors:Role ambiguity among employees
Role conflict among employeesPoor employee - technology - job fit
Inappropriate evaluation / compensation systemlack of perceived control (contact personnel!)
Lack of teamwork
Service QualityStandards
Service Delivery
Source of For Service Gaps: Zeithaml, Berry & Parasuraman, 1993.
GAP3
Breakdown in Service Quality
Service Gaps
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Service Gaps
Key Factors:Inadequate management of expectations
Overpromising in advertisingOverpromising in personal selling
Inadequate communication among departments/functionsDifferences in policies and procedures across branches or units
Service Delivery
ExternalCommunications
to Customers
Source of For Service Gaps: Zeithaml, Berry & Parasuraman, 1993.
GAP4
Breakdown in Service Quality
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