Source: Robert Morris University, Service Marketing
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Key Concepts
 Service Culture
 Interactive marketing
 Intangibility
 Making the service
 Inseparability
product Tangible
 Variability
 Trade dress
 Perishability
 Physical evidence
 Internal marketing
 Point of encounter
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The Service Culture
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.
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The Service Culture
Service Culture: A culture that supports customer
service through policies, procedures, reward systems,
and actions.
Service culture can be implemented:
Through employee communication
Through company policies
Through personal actions
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Characteristics
 Intangible
 Inseparable
 Variable
 Perishable
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Intangibility
 Services can not be seen, tasted, felt, heard, or smelled.
 Tangible evidences reduce uncertainty
 High risk associated with services.
 Lack of tangibility after the experience
 Companies should create memorable guest experiences
 Tangibles provide signals as to the quality of the intangible
service.
 Exterior and Interior design
 Uniforms 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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Variability
 Services are highly variable
 Services 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
 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.
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Interactive Marketing
Interactive Marketing:
Perceived service quality depends heavily on the quality
of the buyer-seller interaction during the service
encounter.
 The customer judges service quality not just on
technical quality (the quality of the food) but also its
functional quality (the service provided in the
restaurant).
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Tangible Strategies for Service Business
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Promotional material
Employees’ appearance, and
uniforms
Physical environment
Building exteriors
Equipment
Furniture and fixture
Signs
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Service Business Consistency
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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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