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Source: The World Factbook 2008, Central Intelligence Agency
Services
64%
Agriculture
4%
Manufacturing
32%
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• Financial Services• Hospitality
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Physical Elements
High
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Source: Adapted from Lynn Shostack
Salt
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WineGolf Clubs
New CarTailored clothing
Fast-Food Restaurant
Plumbing Repair
Health ClubAirline Flight
Landscape MaintenanceConsulting
Life Insurance
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• Services can be used as a differentiation
strategy in competitive markets
• Customer satisfaction and loyalty are driven by
service excellence
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Product Price Place Promotion
• People – All human actors who play a part in service delivery and thus influence
the buyer ’s perceptions: namely, the firm’s personnel, the customer, and
other customers in the service environment. • Physical Evidence –
The environment in which the service is delivered and where the firm andcustomer interact, and any tangible components that facilitateperformance or communication of the service.
• Process
–
The actual procedures, mechanisms, and flow of activities by which theservice is delivered—the service delivery and operating systems.
• Think of a service you recently consumed. How effectivewas the firm in managing the three new Ps.
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