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Services Marketing Chapter 11


Definition of Product Goods vs. Services Characteristics of Services 3 Additional Ps for Services Evaluating Services Some Services Marketing Issues

- Dwayne D. Gremler

Product Definition

Product

generally thought of in terms of goods or services

- Dwayne D. Gremler

Goods vs. Services

Examples of goods:

Examples of services:

- Dwayne D. Gremler

What are services?

Services are Services

- Dwayne D. Gremler

In The Market Place:

There are very few pure goods or pure services in the marketplace.
example:
Do restaurants provide goods or services?

- Dwayne D. Gremler

The Goods-Services Continuum


Salt

Soft Drinks Detergents Automobiles Cosmetics Fast-food outlets

Intangible dominant Tangible dominant


Fast-food outlets Advertising Agencies Airlines Investment Management Consulting Teaching

- Dwayne D. Gremler

Goods vs. Services

Goods
production separate from consumption
standardized tangible nonperishable

Services
S

H I P

- Dwayne D. Gremler

Characteristics of Services

Intangibility

Perishability

Heterogeneity

- Dwayne D. Gremler

Characteristics of Services

Simultaneous Production & Consumption

Co-Production

- Dwayne D. Gremler

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The Services Marketing Mix: 3 More Ps

People

Process
Physical Evidence

- Dwayne D. Gremler

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People

The Service Employees


Customers

Other Customers

- Dwayne D. Gremler

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Process

includes:
the operational flow of the series of actions required to produce the service and complete the process policies, level of customer involvement, customer direction, employee discretion, flow of activities

- Dwayne D. Gremler

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Physical Evidence
includes: (1)

(2)
examples:
bank statements, travel brochures, business cards

- Dwayne D. Gremler

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Customer Evaluation

attributes a consumer can determine prior to purchase of a product

attributes a consumer can determine after purchase (or during consumption) of a product

characteristics that may be impossible to evaluate even after purchase and consumption

- Dwayne D. Gremler

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Evaluating Services

Easy to evaluate

Most Goods

Most Services

Difficult to evaluate

High in search qualities

High in experience qualities

High in credence qualities


- Dwayne D. Gremler

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Service Encounters in a Shopping Trip


End cycle
Unload cart Greet security guard

Begin cycle
Enter parking lot
Find space Enter store

Exit store Watch sacker Meet cashier

Customer service desk


Get cart Select groceries Ask clerk for help Visit pharmacy Check store directory
- Dwayne D. Gremler

Wait turn
Enter check-out lane

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How to Judge Service Quality

Empathy

SERVICE QUALITY

Assurance

Responsiveness

- Dwayne D. Gremler

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Issues for Marketing of Services

- Dwayne D. Gremler

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