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Summary services marketing
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Services Marketing, Lovelock - Exam Preparation Test Bank (Downloadable Doc)
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Samenvatting services marketingChapter 1: New Perspectives on Marketing in the Service Economy
Services dominate most economies and are growing rapidly.
Services account for more than 60% of GDP worldwide. Services
are different from goods because they are perishable(cannot
expire, or get bad/decay example:food)
Definition: Services are economic activities offered by one party
to another. Often time-based, performances bring about desired
results to recipients, objects or other assets for which purchasers
have responsibility.
In exchange of money, time and effort, service customers expect value from access to goods, labor,
professional skills, facilities, networks and systems; but they do not normally take ownership of any
of the physical elements involved.
Examples of services:
• Labor, skills and expertise rentals
• Car repair
• Medical check-up
• Rented goods services
• Boats
• Fancy-dress costumes
• Defined space and facility rentals
• A seat in an aircraft
• A storage container in a warehouse
• Access to shared facilities
• Theme parks
• Toll roads
• Access to and use of networks and systems
• Telecommunications
• Utilities and banking
Need to distinguish between:
• Marketing of services – when service is the core product
• Marketing through service – when good service increases the value of a core
physical good
4 categories of services
1
,1. People processing
Customers must:
• physically enter the service factory
• cooperate actively with the service operation
2.Possession processing
• Involvement is limited
• Less physical involvement
3.Mental stimulus processing
• Ethical standards required:
• Customers might be manipulated
• Physical presence of recipients not required
4. Information processing
Eight common differences between services and goods but they do not apply equally to all
services
2
, The “7 Ps” of services marketing are needed to create viable
strategies for meeting customer needs profitably.
The service profit chain
3
, Chapter 2: Consumer Behavior in a Services Context
Customer Decision Making: The Three-Stage Model of
Service Consumption
1. Pre-purchase Stage
Customers seek solutions to aroused needs
Evaluating a service may be difficult
Uncertainty about outcomes Increases perceived risk
What risk reduction strategies can service suppliers
develop?
Understanding customers’ service expectations
Components of customer expectations
Making a service purchase decision
1.1 Customers seek solutions to aroused needs
Decision to buy or use a service is triggered by need arousal
Triggers of need:
o Unconscious minds (e.g. personal identity and aspirations)
o Physical conditions (e.g. hunger )
o External sources (e.g. a service firm’s marketing activities)
• Information search: Alternatives then need to be evaluated before a final decision is made
1.2 Evaluating alternatives
Multi attribute model
Search attributes help customers evaluate a
product before purchase
E.g., type of food, location,
type of restaurant and price
Experience attributes cannot be
evaluated before purchase
The consumer will not
know how much s/he will
enjoy the food, the service,
and the atmosphere until
the actual experience
Credence attributes are those that customers find impossible to evaluate confidently even after
purchase and consumption
E.g., hygiene conditions of the kitchen and the healthiness of the cooking ingredients, Computer
Repair, Education, Legal Services, Complex Surgery
1.3 Perceived Risks of Purchasing and Using Services
Functional–unsatisfactory performance outcomes
Financial – monetary loss, unexpected extra costs
4
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