Marketing Week 7 notes PDF

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Marketing Week 7 Lecture notes...

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Week 7 notes: What is a service? A service is a transaction in which no physical goods are transferred from the seller to they buyer.

Intangibility: Makes it difficult to describe the benefits of the service. Servicescape- cues (symbols, images) to illustrate the 'quality' or 'value' of the services. Inseparable: Production and consumption cannot be separated. Can't trial, cant return - so risks are higher. How to reduce risks Testimonials Satisfaction guarantees Introductory price

Heterogeneous Humans are individuals -different wants/needs and perceptions of service Service providers are also human - different skills, personality, etc. Greater variability in service interaction

Perishable: •

You can't store a service - a problem and opportunity for marketers

Capacity management is a critical component of long-term decision making because it is a fundamental part of all business investment decisions. Capacity: the maximum output of an organisation, piece of equipment, or worker There are costs to having too much capacity just as there are costs to not having enough.

The service 'gaps' model We expect great service and when a service fails, a service gap results. •

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Knowledge Gap o The difference between the 'customers expectations' and 'what management think the customers wants'. • Example transferring funds onto my travel card Our expectations change; previous experience. How will I evaluate the service quality?

How could they have avoided this gap? • Conduct market research Other considerations - the zone of tolerance The 'desired level' and the 'minimal level' before you leave and go elsewhere/ Measure - the importance of each dimension - consider a GP visit versus a supermarket

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Standards gap o The difference between 'what management thinks the customer wants' and the 'services standards set'. How do standards gaps occur?

In the case of ANZ, management believe I want "a positive experience, build on trust and delivered in a responsible manner". … but an accountant has worked out that removing this in branch transaction can save the company thousands of dollars. A disconnect from senior management, operations and branches.

How could they have avoided this gap? • • • •

Communication Articulate set standards Inspect Act on feedback

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Delivery gap o The differences between 'standards specifying the service to be delivered' and the 'actual service that is delivered'.

So, unforeseen circumstances… Management may have set standards and articulated Policies may have been in place Team aware of customers expectations… … but, a new team member, untrained branch manager How could you have avoided this gap? The importance on empowering service providers…

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Communications Gap o The difference between the 'actual service that is delivered' and the firms 'communication of that services'.

Listen and involve customer in the process. Service recovery Co-creation logic - so despite a negative experience, having the customer contribute to a solution provide a more positive outcome. Provide a fair solution: Distribute fairness - fair compensation Procedural fairness - the process to attain compensation or service recovery...