chapter eleven strategies for services and relationship marketing
DESCRIPTION
Service Defined bInstrumental activity bFor consumption bConsumer participation bNo ownershipTRANSCRIPT
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Chapter ElevenChapter Eleven
Strategies for Services and Strategies for Services and Relationship MarketingRelationship Marketing
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ObjectivesObjectives
Define “services”Explain the characteristics of servicesUnderstand service demand managementUnderstand standardization & customizationExplain importance of servicesDiscuss relationship buildingReview Internet’s impact on customer service
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Service DefinedService Defined
Instrumental activityFor consumptionConsumer
participationNo ownership
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Service Characteristics Service Characteristics & Strategies: & Strategies: IntangibilityIntangibility
Cannot see or feelCannot smell, hear,
or taste
Stress symbolic clues (Mr. Goodwrench)
Associate tangible symbol with service
Tangible cues like membership cards“You’re in good
hands with Allstate.”
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Service Characteristics Service Characteristics & Strategies: & Strategies: PerishabilityPerishability
Cannot be storedLost sale = lost
income
Demand managementForecastingSupply management
Pricing adjustments
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Service Characteristics Service Characteristics & Strategies: & Strategies: InseparabilityInseparability
Tangible productsTangible products
ProductionProduction SaleSale ConsumptionConsumption
TimeTime
ProductionProductionSaleSale
ConsumptionConsumption
Intangible productsIntangible products Production orientation
Personnel management
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Service Characteristics Service Characteristics & Strategies: Variability& Strategies: Variability
Provided by peopleInherent variance
StandardizationPersonnel selectionTrainingAutomation
Customization
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Total Service ProductTotal Service Product
Participant demeanorPhysical evidenceDelivery process
•Clean new cars•Airport transportation•Uniformed employees•Special membership cards•Easy check in & check out•Special use vehicles (vans, convertibles, sports cars, sport utility cars, etc.)
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Gap AnalysisGap Analysis
Expected service
Management perceptionsof consumer expectations
Mar
kete
rM
arke
ter
Con
sum
erC
onsu
mer
Gap 1Service delivery (including
pre- and post-contacts)
Gap 3Translation of perceptions
to service-quality specificationsGap 2
Gap 5 Perceived service
Externalcommuni-cations to
consumersGap 4
Personal needs Past experienceWord-of-mouth
communications
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Determinants of Service Determinants of Service QualityQuality
AccessAccessCommunicationCommunicationCompetenceCompetenceCourtesyCourtesyReliabilityReliabilityCredibilityCredibility
ServiceAward
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Relationship MarketingRelationship Marketing
Structural Relations
FinancialRelations
SocialRelations
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How the Internet can How the Internet can Improve Customer Improve Customer
ServiceServiceAutomationInteraction
FAQ’se-mail
SpeedCostsPersonalization
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Successful Successful RelationshipsRelationships
Relationship commitmentLong-term vs. short-
term orientedPrice not only factor
TrustReliabilityIntegrity
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Internal MarketingInternal Marketing
Employee directed P.R.
RecognitionEmpowerment
Employeeof the Month
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ReviewReview
Define “services”Explain the characteristics of servicesUnderstand service demand managementUnderstand standardization & customizationExplain importance of servicesDiscuss relationship buildingReview Internet’s impact on customer service