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Designing & Managing Services

Designing & Managing Services. Otterbein College Winter Quarter 2000. Chapter Content. Service Definitions & Classifications How Services Differ From Goods Improving Service Differentiation, Quality, & Productivity Improving Customer Support Services. Pure Tangible Good. Pure Service.

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Designing & Managing Services

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  1. Designing & Managing Services Otterbein CollegeWinter Quarter 2000

  2. Chapter Content • Service Definitions & Classifications • How Services Differ From Goods • Improving Service Differentiation, Quality, & Productivity • Improving Customer Support Services

  3. Pure Tangible Good Pure Service Categories of Service Mix Tangible Good w/ Services Hybrid Major Service w/ Goods

  4. Intangibility Services cannot be seen, tasted, felt, heard, or smelled before purchase Inseparability Services cannot be separated from their providers Services Perishability Services cannot be stored for later sale or use Variability Quality of services depends on who provides them and when, where, and how Four Service Characteristics

  5. Intangibility Use cues to make it tangible Inseparability Increase productivity of providers Services Perishability Match supply and demand Variability Standardize service production & delivery Overcoming Service Challenges

  6. Company Internal marketing External marketing Cleaning/ maintenance services Financial/ banking services Restaurant industry Customers Employees Interactive marketing 3 Types of Marketing in Service Industries

  7. Offer Delivery Image Service Differentiation

  8. Word-of-mouth communications Personal needs Past experience Expected service Consumer Gap 5 Perceived service Gap 1 Service delivery (including pre- and post-contacts) External communi- cations to consumers Gap 4 Gap 3 Marketer Translation of perceptions to service-quality specifications Gap 2 Management perceptions of consumer expectations Service Quality Model

  9. # 1 Determinants of Service Quality • Reliability • Responsiveness • Assurance • Empathy • Tangibles

  10. Keys to Service Excellence • Strategic Concept • Top-Management Commitment • High Standards • Monitoring Systems • Satisfying Customer Complaints • Satisfying Employees & Customers • Managing Productivity

  11. Extremely important A. Concentrate here B. Keep up the good work 1 2 3 4 5 6 7 8 9 10 Fair performance Excellent performance 11 12 13 C. Low priority D. Possible overkill # = Attributes Slightly important Importance-Performance Analysis 14

  12. Complaint Resolution • Hiring Criteria & Training for Employees • Develop Guidelines for Fairness • Remove Complaint Barriers • Analyze Types & Sources of Complaints

  13. Next... Designing Pricing Strategies & Programs

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