Service Encounters Range

Slide 2007 by Christopher Lovelock and Jochen Wirtz

Kunz - Services Marketing

Kunz - Services Marketing

The Servuction System

Slide 2007 by Christopher Lovelock and Jochen Wirtz

Service Marketing System for a

Low-Contact Service (Fig 2.11)
SERVICE MARKETING SYSTEM

Service Operations
System

Service Delivery System

Advertising

Mail
Technical
Core

Other Contact Points

The

Self Service
Equipment

Customer

Market Research
Surveys
Billing/Statements
Random Exposure to
Facilities/Vehicles

Phone,
Fax, Website, etc.

Word of Mouth

Front Stage
(visible)

Backstage
(invisible)
Slide 2007 by Christopher Lovelock and Jochen Wirtz

Kunz - Services Marketing

Service Marketing System for a

High-Contact Service (Fig 2.10)
SERVICE MARKETING SYSTEM
Service Delivery System
Service Operations System

Other
Customers

Interior & Exterior

Facilities

Technical
Core

Equipment

Other Contact Points

Advertising
Sales Calls
Market Research Surveys

The
Customer

Billing/Statements
Misc. Mail, Phone Calls,
E-mails, Faxes, etc.
Website

Service People

Backstage
(invisible)

Front Stage
(visible)

Random Exposure to
Facilities/Vehicles
Other
Customers

Chance Encounters with

Service Personnel
Word of Mouth

Slide 2007 by Christopher Lovelock and Jochen Wirtz

Kunz - Services Marketing

Designing a Service Concept

! Core Product
" Central component that supplies the principal, problem-solving
benefits customers seek

! Supplementary Services
" Augment the core product, facilitating its use and enhancing its
value and appeal

! Delivery Processes
" Used to deliver both the core product and each of the
supplementary services

Slide 2007 by Christopher Lovelock and Jochen Wirtz

Kunz - Services Marketing

The Flower of Service (Fig 3.6)

Information
Payment
Billing

Consultation
Core

Order Taking

Exceptions

Hospitality
Safekeeping

KEY:

Facilitating elements
Enhancing elements
Slide 2007 by Christopher Lovelock and Jochen Wirtz

Kunz - Services Marketing

Information and Physical Processes of

Augmented Service Product (Fig 4.1)
Information
processes
Payment

Information
Consultation
Ordertaking

Core

Billing
Exceptions

Hospitality
Safekeeping

Physical
processes
Slide 2007 by Christopher Lovelock and Jochen Wirtz

Kunz - Services Marketing

Core and Supplementary Services at Luxury Hotel

(Offering Much More than Cheap Motel!)

Reservation
Valet
Parking

Cashier

Business
Center

Room
Service

Reception
A Bed for the Night in
an Elegant Private
Room with a Bathroom
Baggage
Service
Cocktail
Bar

Wake-up
Call
Internet

Slide 2007 by Christopher Lovelock and Jochen Wirtz

Entertainment/ Sports/
Exercise

Restaurant

Kunz - Services Marketing

10

Core and Supplementary Product Design:

An Integrated Perspective (Fig 3.2)

Supplementary
services offered
and delivered

Slide 2007 by Christopher Lovelock and Jochen Wirtz

Scheduling

Nature of
Process

Service Level

Customer
Role

Kunz - Services Marketing

Four Categories Of Services

Delivery Concept
for Core Product

11

(Fig 2.1)

Who or What Is the Direct Recipient of the Service?

Nature of the Service Act
Tangible Actions

Intangible Actions

People
People processing

Possession processing

(services directed at
people s bodies):

(services directed at
physical possessions):

! Barbers
! Health care

! Refueling
! Disposal/recycling

Mental stimulus
processing

Information processing

(services directed at
people s minds):

! Education
! Advertising/PR
Slide 2007 by Christopher Lovelock and Jochen Wirtz

Possessions

Kunz - Services Marketing

(services directed at
intangible assets):

! Accounting
! Banking
12

Examples of Service Tiering in

Different Industries (Table 7.1)
Industry

Tiers

Key Service Attributes and

Physical Elements Used in Tiering

Lodging

Star or diamond
ratings (5 to 1)

Architecture; landscaping; room size;

furnishings and dcor; restaurant facilities and
menus; room service hours; array of services
and physical amenities; staffing levels; caliber
and attitudes of employees

Airline

Classes
(intercontinental):
first, business,
premium economy,
economy

Seat pitch; seat width and reclining capability;

meal and beverage service; staffing ratios;
check-in speed; departure and arrival lounges;
baggage retrieval speed

Car Rental

Class of vehicle

Vehicle size (from subcompact to full size);

degree of luxury; special vehicle types
(minivan, SUV, convertible)

Slide 2007 by Christopher Lovelock and Jochen Wirtz

Kunz - Services Marketing

13

Seven Star Hotel: Burj Al Arab

Slide 2007 by Christopher Lovelock and Jochen Wirtz

Kunz - Services Marketing

14

Developing Right Service Concept for a

Specific Segment
! Use research to identify and prioritize which attributes of
a given service are important to specific market segments
! Individuals may set different priorities according to:
" Purpose of using the service
" Who makes decision
" Timing of use
" Whether service is used alone or with a group
" Composition of that group

Slide 2007 by Christopher Lovelock and Jochen Wirtz

Kunz - Services Marketing

Splitting Responsibilities For

Supplementary Service Elements
As created by
originating firm

Core

(Fig 4.3)

As enhanced
by distributor

Core product

15

As experienced
by customer

Supplementary
services

Core

Total experience
and benefits

Challenges for original supplier

" Act as guardian of overall process
" Ensure that each element offered by intermediaries fits overall service concept
Slide 2007 by Christopher Lovelock and Jochen Wirtz

Kunz - Services Marketing

16

Example: Buying at Ebay

Slide 2007 by Christopher Lovelock and Jochen Wirtz

Kunz - Services Marketing

17

Information and Physical Processes of

Augmented Service Product (Fig 4.1)
Information
processes
Payment

Billing

Information
Consultation

Core

Exceptions

Ordertaking

Hospitality
Safekeeping

Physical
processes
Slide 2007 by Christopher Lovelock and Jochen Wirtz

Kunz - Services Marketing

18

Homework till Tuesday

Build a service flower of your Business
Where might be possibilities to change your offer?

Slide 2007 by Christopher Lovelock and Jochen Wirtz

Kunz - Services Marketing

22