ARBUS302 Lecture Notes - Lecture 4: Air Canada, Genius Bar, Marketing

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On track to become the world"s largest junk removal company by 2012. Our society is a very service based society. By providing good customer service, firms add value to their products and services. Think about your last outstanding or horrible customer service experience. 1% dies, 3% move away, 5% other friendships, 9% competitive reasons, 14% product dissatisfaction but 68% leave because of an attitude of indifference toward the customer by some employee. Apple genius bar - 90% of apple customers report they are very satisfied with its customer service. Service dominant on the left of the spectrum and product dominant on the right of the spectrum. Production was cheaper in other countries, high value placed on convenience and leisure. Intangible - requires using cues to aid customers. Images are used to convey benefit of value. Inseparable production and consumption - production and consumption are simultaneous (as it is produced it is consumed). Little opportunity to test a service before use.

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