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Part 1
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Chapter
Introduction to Services
What are services? Why services marketing? Service and Technology Characteristics of Services Compared to Goods Services Marketing Mix Staying Focused on the Customer
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Professional Services
accounting, legal, architectural
Financial Services
banking, investment advising, insurance
Hospitality
restaurant, hotel/motel, bed & breakfast ski resort, rafting
Travel
airline, travel agency, theme park
Others
hair styling, pest control, plumbing, lawn maintenance, counseling services, health club, interior design
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Figure 1.1
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Source: Inside Sams $100 Billion Growth Machine, by David Kirkpatrick, Fortune, The McGraw-Hillp 86. 2006 June 14, 2004, Companies, Inc. All rights reserved.
Figure 1.2
Tangibility Spectrum
Salt
Intangible Dominant
Tangible Dominant
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Figure 1.3
70
60 50 40
30
20 10 0 1929 1948 1969 1977 1984 1999 Year
Services Manufacturing Mining & Agriculture
Source: Survey of Current Business, April 1998, Table B.8, July 1988, Table 6.6B, and July 1992, Table 6.4C; Eli Ginzberg and George J. Vojta, The Service Sector of the U.S. Economy, Scientific American, 244,3 (1981): 31-39.
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Figure 1.4
10
0 1948 1959 1967 1977 1987 1999 Year
Services Manufacturing Mining & Agriculture
Source: Survey of Current Business, August 1996, Table 11, April 1998, Table B.3; Eli Ginzberg and George J. Vojta, The Service Sector of the U.S. Economy, Scientific American, 244,3 (1981): 31-39.
McGraw-Hill/Irwin 2006 The McGraw-Hill Companies, Inc. All rights reserved.
Table 1.1
Source: D. G. Mick and S. Fournier, Paradoxes of Technology: Consumer Cognizance, Emotions, and Coping Strategies, Journal of Consumer Research 25 (September 1998), pp. 12347.
McGraw-Hill/Irwin 2006 The McGraw-Hill Companies, Inc. All rights reserved.
Table 1.2
Source: A. Parasuraman, V.A. Zeithaml, and L. L. Berry, A Conceptual Model of Service Quality and Its Implications for Future Research, Journal of Marketing 49 (Fall 1985), pp. 4150.
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Intangibility
Heterogeneity
Perishability
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Implications of Intangibility
Services cannot be inventoried
Services cannot be easily patented
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Implications of Heterogeneity
Service delivery and customer satisfaction depend on employee and customer actions
Service quality depends on many uncontrollable factors There is no sure knowledge that the service delivered matches what was planned and promoted
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Implications of Perishability
It is difficult to synchronize supply and demand with services
Services cannot be returned or resold
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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.
Process
The actual procedures, mechanisms, and flow of activities by which the service is deliveredthe service delivery and operating systems.
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Table 1.3
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