Class notes
Service Marketing Notes
- Course
- Institution
Service Marketing Notes part of BUS4026W
[Show more]
Seller
Follow
kathwahl
Content preview
BUS4026WServices Marketing
Kathryn Wahl
Lecture 1
• Focused mainly on products
• But we have so many services around us
• Using it so much more
• Customer relationship is important
Introduction
• What services are
• Characteristics of services
• Service-Profit chain
• Ethics in Services Marketing
• Tesla’s Powerwall versus Eskom [discussion]
What are services?
• There are many service points and opportunities for the service to go wrong
• Eg: Uber delayed, Air hostess rude, check in takes long
• Thus services are unpredictable
• Different products but you need a professional
• Phones: sim provide the service, not the phone
Services vs Products
1. Intangibility
2. Inseparability
3. Heterogeneity
4. Perishability
5. Lack of Ownership
Challenges to Marketers
• Maintaining a competitive advantage
• How do you price it?
• How do you market it?
o Encouraging customer’s to pay for your service
o Showing the customer what the service is before they buy it (e.g.
logo’s)
Inseparability
• The service provider being present
• Additional cues that customers use to evaluate services
• Consistency
• Customers only need to be partially present for the service
• Eg: drop off car at service
• Customers can be mentally, not physically, present
• The involvement of other customers
• Virtual services
1
,Heterogeneity
• All the different experiences the consumer can have
• Service they provide is never the same
• Sometimes going to concerts people around you can make the experience
worse
• If people are talking in the movies
• Child kicking you in the back of the chair
Perishability
• Miss your flight need to buy another ticket
• FOMO
Lack of Ownership
• You don’t own the service
• Purchasing an airline ticket = renting a seat on the plane
Internal Service Quality
• Service providers’ attitude can influence the nature and quality of the service
provided
• Good interrelationships between staff can encourage a more service-oriented
culture
• Allows for a mutually beneficial long-term relationship with customers
• Happy Employees = Good Services = Happy Customers
2
,Employee satisfaction and loyalty
• Internal culture of the organisation must be market-driven and customer-
focused
• The quality of services that employees deliver to external customers will be
related to the treatment they receive from their employers
• Well-trained, well-paid staff working in a well-designed workplace will result in
satisfied employees and improved service quality
Employee productivity
• Satisfied staff will remain with the organisation for longer and their individual
productivity will improve as a result
• The cost of training new employees every six month
External service value
• Enhanced by:
o Increase in employee productivity
o Acceptance of a service culture
o Reflection of service culture in their behaviour towards the customer
Customer satisfaction
• Customer satisfaction should be with the organisation as a whole
• Consistent customer satisfaction can lead to customer loyalty
Customer loyalty
• Customers become loyal as they repeat their purchases
• Loyal customers are beneficial because:
o They generate word of mouth
o They are less price sensitive
o They tend to buy more from you
o Their preferences can be recorded and delivered, making them happier
Ethical Concerns in Services Marketing
• If you advertise certain services on a cruise, you should deliver on those
promises – always! (e.g. unexpected, additional charges once on board)
Lecture 2
Service Quality
3
, Understanding how to manage service quality is an important aspect of marketing
management
Quality = meets or exceeds your expectations
The degree of excellence at an acceptable price and the control of variability at an
acceptable cost (Broh, 1982)
1. Degree of excellence: How well the prototypes perform the intended
function and the benefits they offer relative to competitors’
2. Control of variability: Performance will be high, following safety and
regulation requirements, without defects
3. Acceptable cost: Quality achieved with limited resources to be
profitable and offered at an acceptable price
1 and 2 = Heterogeneity
Cannot be described adequately in a few words, but nevertheless identifies two
dimensions regarded as critical: product performance and freedom from
deficiencies (Juran, 1988)
§ Superiority or excellence
§ Objective quality (predetermined standards)
§ Comparison
§ Perceived quality (Zeithaml, 1988)
§ Perception/attitude/personal judgement
§ Evoked set = main services you like to use eg Netflix and Apple Music
§ Social media and memes can completely change your perception
Sorbet
• Business model: providing convenience
• Similar treatment or experience
• Branches are managed by different people
• “We serve differently, we serve with heart”
• “We don’t have customers. We have guests.”
• “Sorbet is not just a brand. It’s an attitude.”
• Were able to open a Sorbet Man
Service quality
• Stress free
• Being and forgetting personal worries during the day
4
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller kathwahl. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $5.57. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
77858 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now