MAR3023 LECTURE NOTES EXAM 2 CHAPTER 13 LECTURE SEGMENT 1 WHAT STUDY SERVICE MARKETING Why study service marketing Make up 75 in US Gross Domestic Product Factors contributing to service Growth Aging population Baby Boomers Increased leisure time High per capita income Discretionary income Changing social and cultural values Matters because you need to be relevant manufacturing Florida businesses Orlando has a ton of service companys few CHAPTER 13 LECTURE SEGMENT 2 WHAT IS A SERVICE What is Service School Not just service people help fix things or customer service Old Service Defined The application of specialized competences skills and knowledge through deeds processes and performances for the benefit of another entity or the entity itself self service Services look at the customer Every interaction between customer and organization is a service interaction MAR3023 LECTURE NOTES EXAM 2 Goods objects devices things shoes car etc Bank of America phone company service company o What you sell are performances deeds or efforts o Selling expertise to consumers with nothing tangible Service Characteristics Intangibility o Customer evaluation process for Services Search Qualities Attributes Heterogeneity Attributes a customer can determine prior to purchase ex color style price feel hardness smell Experience qualities attributes Attributes can only determine after purchase or during consumption example taste wear ability Credence Qualities Attributes Characteristics that may be impossible to evaluate even after purchase and consumption example medial and legal services transaction to the next o Heterogeneity is the variation in consistency from one service Services occur in real time little no chance to intercept Sources of variation problems Location variance Starbucks in Tallahassee is going to be different than Starbucks in Naples Employee Variance Jane s service is going to be Customer variance low maintenance vs high different than Jon s service maintenance customer MAR3023 LECTURE NOTES EXAM 2 Implications of heterogeneity Service quality depends on many uncontrollable factors Service delivery and customer satisfaction depends on employee and customer actions There is no knowledge that the service delivered matches what was planned and promoted It is impossible for a service operation to achieve 100 perfect quality on an ongoing basis Inseparability provided o The service provider physical connection to the service being Often providers must be physically present to deliver Employee satisfaction and customer satisfaction are service directly related Ex doctor asks what s wrong Input is required for provide to deliver service The customer s involvement in a service production If customer is not playing a roll then that can effect service experience Person not turning cell phone off during o A service cannot be saved its unused capacity cannot be reserved and it cannot be inventories Once the plane takes off and that unsold seat is not filled that effects revenue o Implications of perishability long term short term Difficult to synchronize supply and demand with service Services cannot be returned or resold CHAPTER 13 LECTURE SEGMENT 3 Perishability movie MAR3023 LECTURE NOTES EXAM 2 WHY IS SERVICES MARKETING DIFFERENT WHY MANAGERS CARE Expanded Service Marketing Mix 4 3 7 4 P s Product Place Promotion Price ADD THREE FOR SERVICE WORLD o People all human actors who play a part in service delivery and thus influence the buyer s perceptions namely the firms personnel the customer and other customers in the service environment o Physical Evidence The environment in which the service is delivered and where the firm and customer interact and any tangible components that facilitate performance or communication of the service activities by which the service is delivered the delivery and operating systems o Process The actual procedures mechanisms and flow of Why do managers care Customer loyalty making customers come back to you customer What drives customer satisfaction satisfaction o Pricing o Product quality o Experience while purchasing product service quality o Customer satisfaction drives customer loyalty which drives revenue and profitability of a company Service quality o Increased customer retention o Positive word of mouth communications o Increase revenues MAR3023 LECTURE NOTES EXAM 2 5 dimensions of service quality o 1 Reliability ability to perform the promised service Providing service as promised at the promised time dependably and accurately o 2 Assurance Knowledge and courtesy of employees and their ability to inspire trust and confidence towards the firm Employees who have the knowledge to answer Making customers feel safe in their transactions o 3 Empathy Caring individualized attention the firm customer questions provides to its customers Employees who understand the needs of their Employees who deal with customers in a caring fashion customers o 4 Responsiveness Willingness to help customers and provide prompt service Readiness to customer s requests o 5 Tangibles Appearance of physical facilities equipment written materials and appearance of personnel Modern equipment visually appealing facilities Employee appearance Visually appealing materials associated with the service Managerial thought process and Managerial decision How customer s judge the five dimensions of service quality What do these dimensions mean in your context Are all five dimensions relevant MAR3023 LECTURE NOTES EXAM 2 MAR3023 LECTURE NOTES EXAM 2 CHAPTER 6 LECTURE SEGMENT 1 WHAT IS CONSUMER BEHAVIOR What is consumer behavior Reflects totality of decisions that consumers are making Not just taking money out of pocket and paying the whole process Usage consumption Everything is effected by marketing strategies and tactics Impact by marketing mix CHAPTER 6 LECTURE SEGMENT 2 USING CONSUMING Conspicuous Consumption Visual consumption in order to show off one s status Keeping up with the Joneses Getting coffee at Starbucks instead of McDonalds MAR3023 LECTURE NOTES EXAM 2 Nice cars and handbags Why do people engage in conspicuous consumption Social needs signal wealth and status that comes with wealth How is wealth perceived when signaled by conspicuous consumption o Rich people are perceived as more competent but more cold o Poor people are perceived as less successful but more friendly What about conspicuous sellers and honest Depends on the relationship norm Exchange relationship Quid pro quo self
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