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Source: Robert Morris University, Service Marketing

Key Concepts

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Service Culture

Intangibility

Inseparability

Variability

Perishability

Internal marketing

Interactive marketing

Making the service

product Tangible

Trade dress

Physical evidence

Point of encounter

The Service Culture

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A Service Culture indicates that, for everyone in the provider organization,

Customer Satisfaction is the top priority and that service provider activities

demonstrably contribute to the business objectives of the Customer.

The Service Culture

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Service Culture: A culture that supports customer service through policies, procedures, reward systems, and actions.

Service culture can be implemented:Through employee communicationThrough company policiesThrough personal actions

Characteristics

IntangibleInseparableVariablePerishable

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IntangibilityServices can not be seen, tasted, felt, heard, or smelled.Tangible evidences reduce uncertainty High risk associated with services. Lack of tangibility after the experienceCompanies should create memorable guest experiencesTangibles provide signals as to the quality of the intangible

service. Exterior and Interior designUniforms of employees

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Inseparability Customer-contact employees are part of the product Other customers become part of service The employee becomes part of service The customer and the employee interact with the

service delivery system. Customers and employees must understand the

service delivery system. Select, hire and train customers. Select and train contact employees Empower employees

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VariabilityServices are highly variableServices are produced and consumed

simultaneously.Service consistency depends on the service

provider’s skill.Fluctuating demand makes it difficult to deliver

consistent quality.Lack of consistency a major source of customer

disappointment.Guest expectations are different. Train contact and non-contact employee

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Perishability

Lack of ability to inventory – services can not be stored

Capacity and demand must be successfully managed

If services are to maximize revenue, they must manage

capacity and demand.

Change customer use pattern (Hourly, daily, seasonally)

Cross-train employees

Involve customer in the service delivery system

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Management Strategies for Service Business

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Service firms use marketing to position themselves

strongly in chosen target markets.

In a service business the customer and frontline

service employee interact to create service

Service providers must work to interact effectively

with customers to create superior value.

Successful service companies focus their attention on

both their employees and customers.

Interactive Marketing

Interactive Marketing:

Perceived service quality depends heavily on the quality

of the buyer-seller interactionbuyer-seller interaction during the service

encounter.

The customer judges service quality not just on

technical qualitytechnical quality (the quality of the food) but also its

functional qualityfunctional quality (the service provided in the

restaurant).

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Tangible Strategies for Service Business

Promotional material Employees’ appearance, and

uniforms Physical environment Building exteriors Equipment Furniture and fixture Signs

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Service Business Consistency

Consistency is one of the key factor in the success of a service business.

Basically, this means that customers receive the service they expect without unwanted surprises.

Many factors work against consistency 100% satisfaction guarantee On-going Customer rating system

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