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    Session 4 &amp 5

    Uploaded by

    Sanchit Batra
    This document discusses various frameworks for classifying and understanding services. It describes characteristics that are unique to services such as intangibility, heterogeneity, simultaneous production and consumption, and perishability. These characteristics can create specific challenges for marketing services. The document then presents several frameworks for categorizing services including: the service package elements of core, supporting and facilitating goods/information; the service process matrix based on labor intensity and customer interaction; classifications based on the nature of the service act, relationships with customers, customization/judgment involved, demand characteristics, and method of delivery. An example case study of a automotive repair shop, Village Volvo, is also discussed.

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    Download as PPT, PDF, TXT or read online from Scribd

    Session 4 &amp 5

    Uploaded by

    Sanchit Batra
    216 views23 pages
    This document discusses various frameworks for classifying and understanding services. It describes characteristics that are unique to services such as intangibility, heterogeneity, simultaneous production and consumption, and perishability. These characteristics can create specific challenges for marketing services. The document then presents several frameworks for categorizing services including: the service package elements of core, supporting and facilitating goods/information; the service process matrix based on labor intensity and customer interaction; classifications based on the nature of the service act, relationships with customers, customization/judgment involved, demand characteristics, and method of delivery. An example case study of a automotive repair shop, Village Volvo, is also discussed.

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    Session 4 &5

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    This document discusses various frameworks for classifying and understanding services. It describes characteristics that are unique to services such as intangibility, heterogeneity, simultaneous production and consumption, and perishability. These characteristics can create specific challenges for marketing services. The document then presents several frameworks for categorizing services including: the service package elements of core, supporting and facilitating goods/information; the service process matrix based on labor intensity and customer interaction; classifications based on the nature of the service act, relationships with customers, customization/judgment involved, demand characteristics, and method of delivery. An example case study of a automotive repair shop, Village Volvo, is also discussed.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    216 views23 pages

    Session 4 &amp 5

    Uploaded by

    Sanchit Batra
    This document discusses various frameworks for classifying and understanding services. It describes characteristics that are unique to services such as intangibility, heterogeneity, simultaneous production and consumption, and perishability. These characteristics can create specific challenges for marketing services. The document then presents several frameworks for categorizing services including: the service package elements of core, supporting and facilitating goods/information; the service process matrix based on labor intensity and customer interaction; classifications based on the nature of the service act, relationships with customers, customization/judgment involved, demand characteristics, and method of delivery. An example case study of a automotive repair shop, Village Volvo, is also discussed.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
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    The key takeaways are the characteristics of services like intangibility, perishability, heterogeneity, and simultaneous production and consumption. It also discusses the challenges in marketing services due to these characteristics.

    The main characteristics of services discussed are intangibility, perishability, simultaneity, heterogeneity, and the fact that customers participate in the production and delivery of services.

    The elements that make up a service package are the core service, supporting facilities, facilitating goods, information provided, explicit services, and implicit services.

    Tangibility Spectrum

    Salt

    Soft Drinks Detergents Automobiles Cosmetics Fast-food Outlets

    Intangible Dominant

    Tangible Dominant

    Fast-food Outlets

    Advertising Agencies Airlines Investment Management Consulting

    Teaching

    Marketing Challenges: due to following characteristics

    Intangibility Heterogeneity

    Simultaneous Production Perishability and Consumption

    Services are Different


    Goods
    Tangible

    Services
    Intangible

    Resulting Implications
    Services cannot be inventoried. Services cannot be patented. Services cannot be readily displayed or communicated. Pricing is difficult.

    Standardized

    Heterogeneous Service delivery and customer satisfaction depend on employee actions. Service quality depends on many uncontrollable factors. There is no sure knowledge that the service delivered matches what was planned and promoted. Simultaneous production and consumption Customers participate in and affect the transaction. Customers affect each other. Employees affect the service outcome. Decentralization may be essential. Mass production is difficult. It is difficult to synchronize supply and demand with services. Services cannot be returned or resold.

    Production separate from consumption

    Nonperishable Perishable

    Expanded Marketing Mix for Services


    PEOPLE
    Employees Customers Communicating culture and values Employee research

    PHYSICAL EVIDENCE
    Facility design Equipment Signage Employee dress Other tangibles

    PROCESS
    Flow of activities Number of steps Level of customer involvement

    PRODUCTIVI TY & QUALITY No org. can offer one in isolation of another

    Reducing Cost

    Customer satisfaction & Loyalty

    SESSION 4 & 5 Nature of Services


    By Dr. Nripendra Singh Jaypee Business School, Noida Agenda
    Characteristics of Services The Service Package Service Classification Classifying Services for Strategic Insights Case Study: Village Volvo

    Characteristics of Services (eg. Doctors Clinic) Customer participation in the service process: cooperative or uncooperative and providing some self-care Simultaneity: round-the-clock staffing is necessary Perishability: expensive services of Specialist (doctor) are not needed full-time. Thus, it gives rise to scheduling problems. Intangibility: patients are not in a position to judge the quality of a clinic before they enter it, and usually have difficulty in changing the clinic. Heterogeneity: Every patient is an individual

    Service Package
    ELEMENT BUSINESS CORE SUPPORTING FACILITY FACILITATING GOODS INFORMATION Hospitality REST / SLEEP Hotel Room / Bathroom / Restaurant Bed / Bedding / Complementary Breakfast / AC EXAMPLE

    Using CRM: Customer Preferences / Tariff / Tour Desk / Rooms Occupancy (software) EXPLICIT SERVICES Star rated / member of International chain of hotels / 24 Hours HELP DESK / Guaranteed Satisfaction IMPLICIT SERVICES Friendly Employee / Ambience: dcor & Music / Magnetic Key Cards / Reservation / Free Parking

    Service Classification
    Service Process Matrix Nature of the Service Act Relationship with Customers Customization and Judgement Nature of Demand and Supply Method of Service Delivery

    The Service Process Matrix


    Degree of Interaction & Customization
    LOW HIGH

    Degre LOW Service Factory e of Labou r Intensi ty


    HIGHMass Service

    Service Shop

    Professional Service

    The Service Process Matrix


    Degree of Interaction & Customization
    LOW HIGH

    Degre LOW Service Factory: e of - Airlines - Trucking Labou - Hotels r - Resorts & Recreation Intensi ty
    HIGHMass Service:

    Service Shop: - Hospitals - Auto Repair - Other Repair Services Professional Service: Physicians Lawyers Accountants Architects

    Retailing Wholesaling Schools Retail Banking

    Classifying Services for Strategic Insights


    Understanding the Nature of the Service Act
    Direct Recipient of the Service People Nature Tangible of the Actions Service Act Intangib le Actions Things

    Classifying Services for Strategic Insights


    Relationships with Customers
    Type of Relationship between service organisation and its customers Membership No Formal Relationship Nature Continuous of the Delivery Service Delivery Discrete transaction s

    Classifying Services for Strategic Insights


    Relationships with Customers
    Type of Relationship between service organisation and its customers Membership No Formal Relationship Nature Continuous of the Delivery Service Delivery Discrete transaction s
    Insurance Radio Station Telephone Police subscription Highways Electric utility ISD calls Toll Highway Transit Pass Pay phone Wholesale Buying Movie Theater club Restaurant Frequent Flyer

    Classifying Services for Strategic Insights


    Customization and Judgment in Service Delivery
    Extent to which service characteristics are customized high low Customehigh r contact persone xercise judgeme low nt

    Classifying Services for Strategic Insights


    Customization and Judgment in Service Delivery
    Extent to which service characteristics are customized high low CustomehighSurgery r contact Taxi persone Gourmet restaurant xercise judgeme low Telephone nt Hotel Retail banking Education Family restaurant Preventive health program Public transportation Movie theater Spectator sports

    Classifying Services for Strategic Insights


    What is the Nature of Demand for the Service Relative to Supply?
    Extent of Demand Fluctuations Over Time Wide Narrow Extent to Peak which demand Supply is met Constrai without ned delay Peak demand exceeds capacity

    Classifying Services for Strategic Insights


    What is the Nature of Demand for the Service Relative to Supply?
    Extent of Demand Fluctuations Over Time Wide Narrow Extent to Peak which demand Supply is met Constrai without ned delay Peak demand exceeds capacity Electricity Insurance Telephone Legal Services Police Emergency Dry Cleaning

    Tax Preparation Hotels Passenger Transportation

    Fast Food Restaurant Movie Theater Petrol Pump

    Classifying Services for Strategic Insights


    Method of Service Delivery
    Availability of Service Outlets Single Site Multiple Site Interac Customer tion Travels to betwee Service Firm n Custo Service mer & Provider Service travels to providecustomers r Transaction at Arm's Length

    Classifying Services for Strategic Insights


    Method of Service Delivery
    Interac Customer tion Travels to betwee Service Firm n Custo Service Pest Control mer & Provider Service Service travels to Taxi providecustomers r Transaction at Credit Card Arm's Length Local TV station Availability of Service Outlets Single Site Multiple Site Bus Service Theater Fast Food Barbershop Mail Delivery Emergency Repairs National TV Telephone

    Case Study: Village Volvo


    Describe Village Volvo's service package. How are the distinctive characteristics of a service firm illustrated by Village Volvo? Characterize Village Volvo in regard to the nature of the service act, the relationship with customers, customization and judgment, the nature of demand and supply, and

    THANKS

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