Services Marketing

Experience Attributes?

Cannot be evaluated before purchase—must "experience" product to know it. EX: Vacations, sporting events, medical procedures

Core Product?

Central component that supplies the principal, problem-solving benefits customers seek.

Satisfaction Judgments?

Positive disconfirmation - if better than expected Confirmation - if same as expected Negative disconfirmation - if worse than expected

Consumer Decision Making Stages?

Pre-Purchase Stage Service Encounter Stage Post-Purchase Stage

Credence Attributes?

Product characteristics that customers find impossible to evaluate confidently even after purchase and consumption. EX: Quality of repair and maintenance work, quality of financial advice from a money manager

Information Processing Service?

Services directed at intangible assets. EX: Accounting, Banking

People Processing Service?

Services directed at people's bodies. EX: Barbers, Health Care

Mental Stimulus Processing Service?

Services directed at people's minds. EX: Education, Advertising/PR

Possession Processing Service?

Services directed at physical possessions. EX: Refueling, Disposal/Recycling

Delivery Processes?

Used to deliver the core product and supplementary services.

What are services?

Are economic activities offered by one party to another. In exchange for their money, time, and effort, service customers expect to obtain value from. They are intangible objects.

Supplementary Services?

Augments the core product, facilitates use, and enhances its value and appeal.

Branded Experience?

Branding can be used at both company and product levels Corporate brand:Stands for a particular way of doing business Product brand: Helps firm establish mental picture of service in consumers' minds Clarifies the value proposition

Search Attributes?

Help customers evaluate a product before purchase. EX: Style, color, texture, taste, sound

Service concept design?

How to deliver the different service components to the customer? The customer's role in those processes? How long delivery lasts? The recommended level and style of service to be offered?

Internal Corporate Analysis?

Identify firm resources, limitations, goals, and values.

Marketing management tasks in the service sector differ from the manufacturing sector.

-Most service products cannot be inventoried -Intangible elements dominate value creation -Services are difficult to visualize and understand -Customers may be involved in co-production -People may be part of the service experience -Operational inputs and outputs tend to vary more widely -Time factor often assumes great importance -Distribution may take place through nonphysical channels

Pre-Purchase Stage?

-Need Awareness -Information Search -Evaluation of Alternatives -Purchase Decision

7 P's of Service?

-Product elements -Place and time -Price and other user outlays -Promotion and education -Process -Physical environment -People

Service Encounter Stage?

-Service encounters range from high- to low-contact -Understanding the servuction system -Theater as a metaphor for service delivery: An integrative perspective

Service Operations (front stage and backstage)?

-Technical core where inputs are processed and service elements are created -Includes facilities, equipment, and personnel

Competitor Analysis?

-Understand competitors' strengths and weaknesses -Anticipate responses to your positioning strategies

Delight?

-Unexpectedly high levels of performance -Arousal (e.g., surprise, excitement) -Positive affect (e.g., pleasure, joy, or happiness)

Developing Right Service Concept for a Specific Segment?

-Use research to identify and prioritize which attributes are important to specific segments. -Determinant attributes determine buyers' choices between competing alternatives

Service Delivery (front stage)?

-Where "final assembly" of service elements takes place and service is delivered to customers -Includes customer interactions with operations and other customers

Competitive Advantage?

-Competition makes it important to differentiate products -Brand positioning -Emphasize competitive advantage on attributes that will be valued by customers in target segment(s)

High-Contact Services?

-Customers visit and remain throughout service delivery -Active contact between customers and service personnel -Includes most people-processing services

Market Analysis?

-Demand trends and geographic locations of demand -Size and potential of different market segments -Understand customer needs/preferences, and how they perceive the competition

Post-Purchase Stage?

-Evaluation of service performance -Future intentions

Low-Contact Services?

-Little or no physical contact -Contact usually through electronic or physical distribution channels -New technologies (e.g. Web) reduce contact levels

Enhancing Examples?

Consultation - Value added by offering advice or consultation tailored to each customer's needs Hospitality - Customers who invest time and effort in visiting deserve to be treated as welcome guests Safekeeping - Customers prefer not to worry about looking after their personal possessions that they bring to a service site Exceptions - Customers appreciate some flexibility when they make special requests and expect responsiveness when things don't go according to plan

Four broad categories of services?

People processing Possession processing Mental stimulus processing Information processing

Evoked Set?

Set of possible services or brands that a customer may consider in the decision process.

New Service Experience?

Style changes: Visible changes in service design or scripts Service improvements :Modest changes in the performance of current products Supplementary service innovations: Addition of new or improved facilitating or enhancing elements Process-line extensions: Alternative delivery procedures Product-line extensions: Additions to current product lines Major process innovations: Using new processes to deliver existing products Major service innovations: New core products for previously undefined markets

Enhancing?

supplementary service - add extra value for the customer

Facilitating?

supplementary services - either needed for service delivery, or help in the use of the core product