BU2108 Lecture 2: Lecture 2 - People Processes and Physical
Document Summary
Importance of services sector: 70% - 80% gdp in highly dev. Economies australia, new zealand, japan, singapore: about 75% - 80% workforce employement and growing. The 7 p"s: product, place, people, physical facilities, process, price, promotion. Service product: bundle of attributes that provides consumer value - core and augmented services (differentiate for competitors) Service are defined by the outcomes - what consumers receive & how customers receive the service. Service design inc tangibles, brand image & service quality very important. Service marketing channels are mostly short and direct: ease of access is very important, most services are provided directly (face-to-face, the quandary "people versus technology" usage in providing services (reducing variability versus lack of personal contact) Pricing: price is an often perceived indicator of quality, demand-based pricing, differentiate for segments, price bundling - full or add-on options (holiday - airfare & accommodation) "tangible" components / cues: tangible cues can reduce perceived customer risk.
