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Designing & Managing Services W. Rofianto

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Page 1: Designing & Managing Services · How do we define and classify services and how do they differ from goods? Service is any act of performance that one party can offer another that

Designing & Managing Services

W. Rofianto

Page 2: Designing & Managing Services · How do we define and classify services and how do they differ from goods? Service is any act of performance that one party can offer another that
Page 3: Designing & Managing Services · How do we define and classify services and how do they differ from goods? Service is any act of performance that one party can offer another that

How do we define and classify

services and how do they differ

from goods?

Page 4: Designing & Managing Services · How do we define and classify services and how do they differ from goods? Service is any act of performance that one party can offer another that

Service is any act of performance that one party

can offer another that is essentially intangible and

does not result in the ownership of anything; its

production may or may not be tied to a physical

product.

Product is a bundle of physical, service, and symbolic attributesdesigned to satisfy a customer’s wants and needs.

Page 5: Designing & Managing Services · How do we define and classify services and how do they differ from goods? Service is any act of performance that one party can offer another that

Service SectorsGovernment

Private

nonprofit

Business

Page 6: Designing & Managing Services · How do we define and classify services and how do they differ from goods? Service is any act of performance that one party can offer another that

Categories of Service Mix

Pure tangiblegood

Good w/ accompanying services

Hybrid

Service w/ accompanying goods

Pure service

Page 7: Designing & Managing Services · How do we define and classify services and how do they differ from goods? Service is any act of performance that one party can offer another that

Continuum of Evaluation for Different Types of Products

Page 8: Designing & Managing Services · How do we define and classify services and how do they differ from goods? Service is any act of performance that one party can offer another that

Distinctive Characteristics of Services

Page 9: Designing & Managing Services · How do we define and classify services and how do they differ from goods? Service is any act of performance that one party can offer another that

How do we market services?

Page 10: Designing & Managing Services · How do we define and classify services and how do they differ from goods? Service is any act of performance that one party can offer another that

Place

PeopleEquipment

Communication

material

Symbols

Price

Service quality through physical evidence

Page 11: Designing & Managing Services · How do we define and classify services and how do they differ from goods? Service is any act of performance that one party can offer another that

Matching Demand and Supply

Reservation systemsDifferential pricing

Complementary servicesNonpeak demand

Page 12: Designing & Managing Services · How do we define and classify services and how do they differ from goods? Service is any act of performance that one party can offer another that

Increased consumer participation

Part-time employees

Matching Demand and Supply

Shared servicesPeak-time efficiency

Page 13: Designing & Managing Services · How do we define and classify services and how do they differ from goods? Service is any act of performance that one party can offer another that

Service Guarantees through Increasing

Quality Control

Invest in good hiring and

training procedures

Standardize the

service-performance

process

Monitor

customer satisfaction

Page 14: Designing & Managing Services · How do we define and classify services and how do they differ from goods? Service is any act of performance that one party can offer another that

A Blueprint for Overnight Hotel Stay

Page 15: Designing & Managing Services · How do we define and classify services and how do they differ from goods? Service is any act of performance that one party can offer another that

How can we

improve service quality?

Page 16: Designing & Managing Services · How do we define and classify services and how do they differ from goods? Service is any act of performance that one party can offer another that
Page 17: Designing & Managing Services · How do we define and classify services and how do they differ from goods? Service is any act of performance that one party can offer another that

Service Marketing Triangle

Page 18: Designing & Managing Services · How do we define and classify services and how do they differ from goods? Service is any act of performance that one party can offer another that

Service-Quality Model

Parasuraman, Zeithaml & Berry, 1985

Page 19: Designing & Managing Services · How do we define and classify services and how do they differ from goods? Service is any act of performance that one party can offer another that
Page 20: Designing & Managing Services · How do we define and classify services and how do they differ from goods? Service is any act of performance that one party can offer another that

Customer-Failures Reduction

Redesign processes and redefine

customer roles to

simplify service encounters

Incorporate the right technology

to aid employees and customers

Create high-performance customers

by enhancing their role clarity,

motivation, and ability

Encourage customer citizenship

where “customers help customers”

Page 21: Designing & Managing Services · How do we define and classify services and how do they differ from goods? Service is any act of performance that one party can offer another that
Page 22: Designing & Managing Services · How do we define and classify services and how do they differ from goods? Service is any act of performance that one party can offer another that

Satisfying Customer Complaints

40 % of customers who suffer through a bad service

experience stop doing business with the company.

But if those customers are willing to complainfirst, they actually offer the company a gift if the

complaint is handled well.

Page 23: Designing & Managing Services · How do we define and classify services and how do they differ from goods? Service is any act of performance that one party can offer another that

How do service marketers create

strong brands?

Page 24: Designing & Managing Services · How do we define and classify services and how do they differ from goods? Service is any act of performance that one party can offer another that

Best Practices of Top Service Company

“Customer obsessed.” Strategic Concept

Top-Management Commitment

High Standards

Satisfying Customer Complaints

Satisfying Employees

Self-Service Technologies

Monitoring Systems

Page 25: Designing & Managing Services · How do we define and classify services and how do they differ from goods? Service is any act of performance that one party can offer another that
Page 26: Designing & Managing Services · How do we define and classify services and how do they differ from goods? Service is any act of performance that one party can offer another that

Is service marketing different fromproduct marketing?

A. Product and service marketing are fundamentally different.

VS

B. Product and service marketing are highly related.

Page 27: Designing & Managing Services · How do we define and classify services and how do they differ from goods? Service is any act of performance that one party can offer another that

Service is the fundamental basis of exchange

Goods are a distribution mechanism for service provision

The customer is always a co- creator of value

The enterprise cannot deliver value, but only offer value propositions

The New Paradigm: Service-dominant logic

Page 28: Designing & Managing Services · How do we define and classify services and how do they differ from goods? Service is any act of performance that one party can offer another that