Designing And Managing Services: Session 13 Subhadip Roy

Designing and Managing Services

Session 13 Subhadip Roy

“There are no such thing as service industries.There are only industries whose service components are greater or less than those of other industries. Everybody is in service.” -Theodore Levitt

What is services?  It is the part of the product or the full product for which the customer is willing to see value and pay for it.  Any act of performance that one party can offer another that is essentially intangible and does not result in the ownership of anything.

Categories of Service Mix Pure tangible good (Soap) Good w/ accompanying services (Cars) Hybrid (Restaurant) Service w/ accompanying goods (Train, Airlines) Pure service (Psychotherapy, Massage)

Distinctive Characteristics of Services

Intangibility Inseparability Variability Perishability

3 additional ‘P’s of Service Marketing • People • Physical evidence • Process

Physical Evidence and Presentation (To Tangibilize) Place People Equipment Communication material Symbols Price

How to Increase Quality Control and Decrease Variability Invest in good hiring and training procedures Standardize the service-performance process Monitor customer satisfaction

Matching Demand and Supply (To counter Perishability) Demand side • Differential pricing • Non-peak demand • Complementary services • Reservation systems

Supply side • Part-time employees • Peak-time efficiency • Increased consumer participation • Shared services • Facilities for future expansion

Holistic Marketing for Services

Service Quality Gaps • Gap between management perceptions and consumer expectations • Gap between management perceptions and service quality specifications • Gap between service quality specifications and service delivery • Gap between service delivery and external communication • Gap between expected service and perceived service

Determinants of Service Quality • • • • •

Reliability – delivering on promises Responsiveness – willing to help Assurance – inspiring trust and confidence Empathy – individualizing customers Tangibles- physical representation

Example Questions • • • • • • • • • • •

P1. XYZ has up-to-date equipment. P2. XYZ's physical facilities are visually appeaUng. P3. XYZ's employees are well dressed and appear neat. P4. The appearance of the physical facilities of XYZ is in keeping with the type of services provided. P5. When XYZ promises to do something by a certain time, it does so. P6. When you have problems, XYZ is sympathetic and reassuring. P7. XYZ is dependable. P8. XYZ provides its services at the time it promises to do so. P9. XYZ keeps its records accurately. P10. XYZ does not tell customers exactly when services will be performed.

Branding a Service

• Choosing Brand Elements • Establishing Image Dimensions • Devising Branding Strategy

Thank You, Class