24108 Chapter Notes - Chapter 11: Customer Service, Co-Creation
Services
Services - Activities, performances pr benefits that are offered for sale but which involve neither an
exchange of tangible goods nor a transfer of title.
Service - Act of delivering a product involving human, intellectual or mechanical activity that adds
value to the product.
Qualities of Services:
•Inseparability - services are produced and consumed simultaneously
•Intangibility - use tangible cues, guarantees and time to reduce anxiety
•Heterogeneity - variations in quality reduced through strategy and repetition
•Perishability - Demand for services must be balanced as services may not be stored for a later
date
Intangibility strategies:
-Add tangible components to intangible services eg digital presentation
-Add intangible service components to tangible goods eg warranty
-Use tangible cues
-Reduce level of perceived risk through techniques such as guarantees
Heterogeneity strategies:
-Develop service delivery systems
-Manage expectations of customers
-Invest in staff training
-Select customers carefully
Perishability strategies:
-Manage demand over time
-Stimulate demand
-Restrict demand
-Increase or decrease supply capacity
Traditional Mix (4Ps)
1. Product
2. Place
3. Price
4. Promotion
Services Mix (7Ps)
5. Process
6. Physical Evidence
7. People
People - Create and deliver the service, affecting value for the customer, must be:
-Technically competent
-Able to deliver high standards of service
-Able to promote products through personal selling
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Document Summary
Services - activities, performances pr bene ts that are offered for sale but which involve neither an exchange of tangible goods nor a transfer of title. Service - act of delivering a product involving human, intellectual or mechanical activity that adds value to the product. Add tangible components to intangible services eg digital presentation. Add intangible service components to tangible goods eg warranty. Reduce level of perceived risk through techniques such as guarantees. Traditional mix (4ps: product, place, price, promotion. Services mix (7ps: process, physical evidence, people. People - create and deliver the service, affecting value for the customer, must be: Able to deliver high standards of service. Able to promote products through personal selling. Physical evidence - tangible cues that can be used as a means to evaluate service quality prior to purchase. Achieving a sustainable differential advantage in marketing services. Delivering consistently high levels of customer service.
