Services Marketing

Session-1
- Dr Anuja Agarwal
WHAT ARE SERVICES?
 Meaning
• Customers expect to obtain value from their
service purchases in exchange for their money,
time and effort, this value comes from access
to a variety of value-creating elements rather
than from transfer of ownership.
- By Christoper Lovelock, Jochen Wirtz,
Jayanta Chatterjee
 Examples of Service Industries
• Health Care
– hospital, medical practice, dentistry, eye care
• Professional Services
– accounting, legal, architectural
• Financial Services
– banking, investment advising, insurance
• Hospitality
– restaurant, hotel/motel, bed & breakfast
– ski resort, rafting
• Travel
– airline, travel agency, theme park
• Others
– hair styling, pest control, plumbing, lawn maintenance, counseling services,
health club, interior design
 Characteristics of Services
(Four I’s Framework)
• Intangibility
• Heterogeneity (Inconsistency/Variability)
• Simultaneous production and consumption
(Inseparability)
• Perishability (Inventory)
Comparing Goods and Services
Classification of Services
 Dark side in Services
• Use of self-service ..etc. leads to no human
interaction
• Some technologies: hard to implement and
difficult to use
• Difficulty in matching with human expectation
• Less-skilled people working
• Low on providing training and compensation
to employees.
Tangibility Spectrum
Continuum of Evaluation for Different goods
and services
 Services Marketing Mix
• Product/Service
• Price
• Place
• Promotion
• People
• Process
• Physical evidence
 Moments of Truth
• Refers to customer touch points that can make
or break a customer relationship.