SERVICE MANAGEMENT MGM 4204

1. SERVICE MANAGEMENTMGM 4204 Dr Mass Hareeza Ali Department of Marketing & Management Faculty of Economics & Management Universiti Putra Malaysia mass@econ.upm.edu.my

2. Def. Service Services are deeds, processes, and performances Services & technology Customers & employees (support in making more effective and efficient in delivering service)

3. Goods Vs Services Marketing • Intangibility – service are performance or actions; cannot be seen, felt, tasted, or touched - advertising and promotional material • Heterogeneity – no two services will be precisely alike; each will have unique demands or experience

4. Simultaneous Production and Consumption • Most services are sold first and then produced and consumed simultaneously; goods are produced first, then sold and consumed. • Customer: Affect each others’ experiences

5. Continue… • Perishability – service cannot be saved, stored, resold, or returned - must be creative; eg hair cut

6. Service Marketing Mix • Traditional Marketing Mix: 4 p’s- product, price, place, and promotion. • Expanded Mix: Additional 4 p’s – includes people, physical evidence and process.

7. Staying focused on Customer • Gaps Model of Service Quality • The customer Gap: Expected service – perceived service • Stages in Consumer decision making and evaluation of services: * Need recognition – information search –evaluation of alternatives – purchase & consumption – postpurchase evaluation

8. The role of Culture in Services • Effects on the ways customers evaluate and use services • Influences how companies and their service employees interact with customers • Major area: language (verbal vs nonverbal), values and attitudes, manners, material culture, aesthetics (culture ideas abt beauty & good taste), educational & social institutions

9. Customer Expectations • Desired service: the level of service the customer hope to receive • Adequate service: the level of service the customer will accept

10. Factors influence customer expectations of service • Sources of desired service expectations: personal needs, derived service expectations, personal service philosophy • Sources of adequate service expectations; transitory service intensifiers, perceived service alternatives, self-perceived service role and situational factors, predicted service

11. Internal/external factors influence desired service & predicted service expectations • Explicit service promises: personal (eg salespeople)/nonpersonal (eg advertising, brochures) statements • Implicit service promises: quality cues-prices and tangibles associated with service • Word of mouth • Past experience

12. What determines Customer satisfaction • Product and service features • Consumer emotions • Attributions for service success or failure • Perceptions of equity or fairness • Other consumers, family members and coworkers

13. Service quality dimensions • Reliability: accurate and dependably • Responsiveness: prompt service • Assurance: trust and confident • Empathy: caring, attention to customers • Tangibles: appearance of physical facilities, equipment, writing material

14. Types of service encounters • Remote encounters: ATM • Phone encounters: Insurance Comp. • Face to face encounters: theme parks

15. Service research program • Qualitative and quantitative research • Both perception and expectations of customers • Balances the cost of research and the value of information • Statistical validity when necessary • Measures priorities or importance • Appropriate frequency • Loyalty or behavioral intentions

16. SERVQUAL Survey • Relationship surveys: customers with the company including service, product, and price.

17. Assignment • Meeting dateline • Take home quiz