Services Marketing Chapter 11

1
Services MarketingChapter 11

• Definition of Product
• Goods vs. Services
• Characteristics of Services
• 3 Additional Ps for Services
• Evaluating Services
• Some Services Marketing Issues

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Product Definition

• Product
• generally thought of in terms of goods or
  services

3
Goods vs. Services

• Examples of goods
• Examples of services

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What are services?

• Services are
• Services

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In The Market Place

• There are very few pure goods or pure
  services in the marketplace.
• example
• Do restaurants provide goods or services?

6
The Goods-Services Continuum
Salt
Soft Drinks
Detergents
Automobiles
Cosmetics
Fast-food outlets
Intangible dominant
Tangible dominant
Fast-food outlets
Advertising Agencies
Airlines
Investment Management
Consulting
Teaching
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Goods vs. Services

• Services
• S
• H
• I
• P

• Goods
• production separate from consumption
• standardized
• tangible
• nonperishable

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Characteristics of Services

• Intangibility
• Perishability
• Heterogeneity

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Characteristics of Services

• Simultaneous Production Consumption
• Co-Production

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The Services Marketing Mix3 More Ps

• People
• Process
• Physical Evidence

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People

• The Service Employees
• Customers
• Other Customers

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Process

• includes
• the operational flow of the series of actions
  required to produce the service and complete the
  process
• policies, level of customer involvement,
  customer direction, employee discretion, flow of
  activities

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Physical Evidence

• includes
• (1)
• (2)
• examples
• bank statements, travel brochures, business cards

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Customer Evaluation

• attributes a consumer can determine prior to
  purchase of a product
• attributes a consumer can determine after
  purchase (or during consumption) of a product
• characteristics that may be impossible to
  evaluate even after purchase and consumption

15
Evaluating Services
Most Goods
Most Services
Difficult to evaluate
Easy to evaluate
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Service Encounters in a Shopping Trip
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How to Judge Service Quality
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Issues for Marketing of Services