CHAPTER 14 Designing and Managing Services Copyright 2016

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CHAPTER 14 Designing and Managing Services Copyright © 2016 Pearson Education, Inc. 14 -

CHAPTER 14 Designing and Managing Services Copyright © 2016 Pearson Education, Inc. 14 -

CATEGORIES OF SERVICE MIX • A pure tangible good • A tangible good with

CATEGORIES OF SERVICE MIX • A pure tangible good • A tangible good with accompanying services • A hybrid • A major service with accompanying minor goods/services • A pure service Copyright © 2016 Pearson Education, Inc. 14 -2

CHARACTERISTICS OF SERVICES Intangibility Inseparability Variability Perishability Copyright © 2016 Pearson Education, Inc. 14

CHARACTERISTICS OF SERVICES Intangibility Inseparability Variability Perishability Copyright © 2016 Pearson Education, Inc. 14 -3

INTANGIBILITY • Services cannot be seen, tasted, felt, heard, or smelled Physical evidence and

INTANGIBILITY • Services cannot be seen, tasted, felt, heard, or smelled Physical evidence and presentation tools: ü Place ü People ü Equipment ü Communication material ü Symbols ü Price Copyright © 2016 Pearson Education, Inc. 14 -4

INSEPARABILITY • Services are typically produced and consumed simultaneously Copyright © 2016 Pearson Education,

INSEPARABILITY • Services are typically produced and consumed simultaneously Copyright © 2016 Pearson Education, Inc. 14 -5

VARIABILITY • The quality of services depends on who provides them, when and where,

VARIABILITY • The quality of services depends on who provides them, when and where, and to whom – As such, services are highly variable Copyright © 2016 Pearson Education, Inc. 14 -6

PERISHABILITY • Services cannot be stored • Strategies to match demand & supply On

PERISHABILITY • Services cannot be stored • Strategies to match demand & supply On demand side • Differential pricing • Nonpeak demand • Complementary services • Reservation services On supply side • Part-time employees • Peak-time efficiency routines • Increased consumer participation • Shared services • Facilities for future expansion Copyright © 2016 Pearson Education, Inc. 14 -7

ACHIEVING EXCELLENCE IN SERVICES MARKETING • Marketing excellence Copyright © 2016 Pearson Education, Inc.

ACHIEVING EXCELLENCE IN SERVICES MARKETING • Marketing excellence Copyright © 2016 Pearson Education, Inc. 14 -8

BEST PRACTICES OF TOP SERVICE COMPANIES Strategic concept Satisfying customer complaints Topmanagement commitment High

BEST PRACTICES OF TOP SERVICE COMPANIES Strategic concept Satisfying customer complaints Topmanagement commitment High standards Monitoring systems Profit tiers Copyright © 2016 Pearson Education, Inc. 14 -9

CHAPTER 11 Designing and Managing Services Copyright 2016CHAPTER 11 Designing and Managing Services Copyright 2016
Chapter 15 Designing and Managing Services 1 CopyrightChapter 15 Designing and Managing Services 1 Copyright
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Managing processes and services Managing processes and servicesManaging processes and services Managing processes and services
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1 13 Designing and Managing Services Chapter Questions1 13 Designing and Managing Services Chapter Questions
Chapter 12 Designing and Managing Services Power PointChapter 12 Designing and Managing Services Power Point
MKT 601 Chapter 14 Designing and Managing ServicesMKT 601 Chapter 14 Designing and Managing Services