SERVICE MARKETING 1.

There is no such thing as pure goods or

pure services
CHAPTER 1: Understanding the Service 2. The tangible aspects of an intangible
Experience dominant products and the tangible aspects
of a tangible dominant product are an
Service vs Goods important source of product differentiation
and new revenue streams
Service – can be defined as deeds, efforts, or
performances Service Marketing Myopia
Goods – refers to objects, devices, or things
Product – either a good or a service - Refers to the condition of firms that produce
tangible products and overlook the service
The Scale of Market Entities aspects of their products

Scale of Market Entities – the scale that displays Molecular Model

a range of products along a continuum based of
their tangibility ranging from tangible dominant
Tangible Dominant – goods that possess physical
properties that can be felt, tasted, and seen prior to
the consumer’s purchase decision
Intangible Dominant – services that lack the
physical properties that can be sensed by
consumer prior to the purchase decision
- Is a pictorial representation of the
relationship between the tangible and
intangible elements of a firms’ operation
- A management tools that offers opportunity
to visualize firms’ entire bundle of benefits
that its product offers customers
Framing the Service Experience: Servuction
Model

Example: Tangible Dominant Benefit Concept – the encapsulation of the

benefits of a product in the consumer’s mind
 Clothes
 Shoes  Example: Tide detergent – the core benefit
 Bags is simply ‘cleaning’. However, other may use
 Jewelries this due to other attributes like, cleanliness,
 Cars whiteness, cheapest and the best detergent
in the market.
 House

• Servuction Model – a model used to

Example: Intangible Dominant
illustrate the four factors that influence the
service experience including those that are
 Fast food outlets
visible to the consumer and those that are
 Restaurant
not.
 Advertising agencies
 Airlines Four factors directly influence customer service
 Travel agency experience
 Investment management
 Consulting 1. Servicescape (visible)

Two Important Lessons of Scale of Market - Refers to the use of physical evidence to
Entities design service environments
 - Due to intangibility of service, the customers
objectively often evaluate the service
experience
- All service firms must need to recognize the
importance of managing the servicescape,
because of its role to the following:
 Packaging the service
 Facilitating the service delivery process
 Socializing customers and employees
 Differentiating the firm from its competitors
Examples of Servicescape
 Ambience (room temperature, music)
 Furnishing and business equipment
 Physical evidences (signs, symbols,
personal artifacts)
“Physical evidence varies by the type of service
firm”
2. Contact Personnel/Service Providers
Contact Personnel – refers to the employees
other than the primary service provider who briefly
interact with the customer. These could be the
parking attendants, receptionists, and hosts and
hostess.
Service Providers – the primary providers of a
core service such as waiter or waitress, dentist,
physician, or college instructors.
Seven Categories of Complaints
 Apathy – showing no concern
 Brush-off – attempts to get rid of the
customers by dismissing the customers
completely
 Coldness – indifferent service providers
who could not care less what the customer
really wants
 Condescension – the “you are the
client/customer, so you must be stupid”
approach.
 Robotism – when the customers are
treated simply as the inputs into a system
that must be processed
 Rulebook – providers who live by the rule s
of the organization even when those rules
do not make good sense.
 Runaround – passing the customer off to
another provider, who will simply pass them
off to another provider.
3. Other Customers
- Can enhance or detract from an individual’s
service experience
- Refer to the customers that share the
primary customer’s service experience
Example:
 Children crying during a church service
 Theatergoers carrying out a loud
conversation during a play
 Unruly customers in a restaurant or club
“The success of many service encounters depends
on how effectively the service firms manages its
clientele”
4. Organization and System
 Reflects the rules, regulations and
processes upon which the organization is
based. (invisible to the customers)
Example:
 No pets allowed in a fine dining restaurant
 Additional charge for the leftovers
 Online reservation and no-walk in policies
Why study services?
1. The growth of the global service company in
terms of contributions to Gross Domestic
Products (GDP)
2. The growth of the global service workforce
3. The emergence of the technologically based
e-services that have transformed many
services industries
4. The importance of developing sustainable
services marketing practices
E-Services

- An electronic service available via the net

that completes tasks, solves problems, or
conducts transactions.

Example:

ATM, UPS Tracking Services, Online booking,

Online bills payment

Self-Service Technologies

- Technologically based services that help

customers help themselves