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Designing & Managing Services
W. Rofianto
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How do we define and classify
services and how do they differ
from goods?
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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.
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Service SectorsGovernment
Private
nonprofit
Business
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Categories of Service Mix
Pure tangiblegood
Good w/ accompanying services
Hybrid
Service w/ accompanying goods
Pure service
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Continuum of Evaluation for Different Types of Products
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Distinctive Characteristics of Services
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How do we market services?
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Place
PeopleEquipment
Communication
material
Symbols
Price
Service quality through physical evidence
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Matching Demand and Supply
Reservation systemsDifferential pricing
Complementary servicesNonpeak demand
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Increased consumer participation
Part-time employees
Matching Demand and Supply
Shared servicesPeak-time efficiency
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Service Guarantees through Increasing
Quality Control
Invest in good hiring and
training procedures
Standardize the
service-performance
process
Monitor
customer satisfaction
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A Blueprint for Overnight Hotel Stay
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How can we
improve service quality?
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Service Marketing Triangle
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Service-Quality Model
Parasuraman, Zeithaml & Berry, 1985
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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”
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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.
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How do service marketers create
strong brands?
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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
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Is service marketing different fromproduct marketing?
A. Product and service marketing are fundamentally different.
VS
B. Product and service marketing are highly related.
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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
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