Introduction to Services Marketing
DS5
Service VS Product
• Product: satisfy the need
• Tangible: goods
• Intangible: service
• Pure intangible:Idea:CA/consultancy
Introduction to Services Marketing
• What is a service?
• Why study Services Marketing?
• How is marketing of goods different from that
of services?
• Classification of services
• Marketing Mix in services
• Continuum in service Evaluation
What is a service?
• “Activities, benefits and satisfactions, which are offered
for sale or are provided in connection with the sale of
goods” (American Marketing Association, Committee of
Definitions 1960, p. 21).
• An activity or series of activities of more or less intangible
nature that normally, not necessarily, take place in
interactions between the customer and service
employees and/or physical resources or goods and/or
systems of the service provider, which are provided as
solution to customer problems”. (Gronroos, 1990)
Why study Service Marketing
Why Study Services Marketing?
• Worldwide growth in service industries.
• Evolution in service industries.
• Demand for deregulated industries and professional service needs.
Source Website: ibef.org
• Reasons for growth of Services in India
https://www.youtube.com/watch?v=UgwXSXKfqpg
https://www.ibef.org/
How is marketing of Goods different from that of
Services?
Characteristics of Services (The 4 “I” Framework)
1. Intangibility: Services cannot be seen, felt, tasted or touched in
the same manner that you can sense tangible goods.
2. Inseparability: Production and consumption of a service happen
simultaneously.
3. Heterogeneity (Inconsistency/Variability):Services are labour
intensive performances, hence no two service experience are
alike. The quality of services cannot be standardized.
4. Perishability (Inventory): Services cannot be stored.
How is marketing of Goods different from that of
Services?
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.
41–50.
Services Pose Distinctive Marketing Challenges
The eight common differences are:
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Most service products cannot be inventoried
Intangible elements usually dominate value creation
Services are often difficult to visualize and understand
Customers may be involved in co-production
People may be part of the service experience
Operational inputs and outputs tend to vary more widely
The time factor often assumes great importance
Distribution may take place through nonphysical channels
Classification of Services
Traditional Marketing Mix
• Elements an organization controls that can be used to satisfy or
communicate with customers:
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–
–
–
Product
Price
Place
Promotion
Expanded Mix for Services –
The 7 Ps
The 4 Ps plus…
People
All human actors who play a part in service delivery and thus influence the buyer’s perceptions:
namely, the firm’s personnel, the customer, and other customers in the service environment.
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 delivered—the
service delivery and operating systems.
Marketing Mix Analysis
• Starbucks Marketing Mix Analysis
:https://www.youtube.com/watch?v=tqNzEXkE4M0
Value Added by Physical, Intangible Elements
Helps Distinguish Goods and Services
Physical
Elements
High
Salt
Detergents
CD Player
Wine
Golf Clubs
New Car
Tailored clothing
Fast-Food Restaurant
Low
Source; Adapted from Lynn Shostack
Plumbing Repair
Health Club
Airline Flight
Landscape Maintenance
Consulting
Life Insurance
Internet Banking
Intangible Elements
High
Search, Experience, and Credence Qualities
The Service Encounter
• The most vivid impression of service occurs in the service encounter
when the customer interacts with the service firm.
• It is the “moment of truth”
• Any service encounter can potentially be critical in determining
customer satisfaction and loyalty.
• However, depending on the context and situation, early, late, and
intense encounters are likely to be more important in customer
evaluations of the overall service experience.
A Service Encounter Cascade for a
Hotel Visit (Figure 4.4)
Types of Service Encounters
• Remote encounters: no direct human contact; automated; the bases for quality
evaluations are tangibles and technical processes.
• Technology-mediated encounters: communication with a real person in real time
via talk, text, live chats; the bases for quality evaluations are tone of voice,
employee knowledge, and effectiveness/efficiency.
• Face-to-face encounters: direct personal contact between an employee and a
customer; bases for quality are verbal and non-verbal cues, symbols.
Journals in Repute
• Journal of service Research(ABDC-A*) Sage
• Manufacturing and Service Operations Management(ABDC-A*)
• Journal of Service Management(ABDC-A) Emerald
• Journal of Service Marketing (ABDC-A) Emerald
• Journal of Service Theory & Practices(ABDC-A) Emerald
• Service Industries Journal (ABDC-B)
• Service Business(ABDC-B)
• Service Science(ABDC-B)
• Service Marketing Quarterly(ABDC-B)
Research in Service Industry
• Travel and Tourism
• Hospitality and Restaurant
• Banking
• Healthcare
• Insurance
• Retail
• Education
• Beauty care/Gym
Syllabus
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Introduction to SM & SD Logic &Customer Logic
Characteristics of services
Service quality & E-Service quality
Service Value & Service Encounter
CB in services(Value co-creation)
Employee role in services
Service Failure & Recovery(Justice theory/Equity/Fairness)
Servicescape
Service Branding
Service convenience
Role of Technology in Services(TAM/SST)
Service Loyalty
Service Innovation & Design
Service Automation & AI
Transformative Service( sustainability)
Flow of Presentation
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Introduction(Objectives/Gaps)
Literature Review(Constructs/Theory support)
Hypothesis Formulations(relationship among construct)
Methodology(Sampling, Data Collection)
Data Analysis ( Statistical Tool used)
Findings
Discussion
Implication
Conclusion
Critics of the Paper
Base paper & Recent paper in that area
New Research Ideas (At least 3)
• Thank you
Evaluation
Component No
Component
Weightage
1
Class Participation
20
2
Term Paper
20
3
Project presentation
20
4
End term Examination
40
Term Paper(20+20)
Component No Component
Weightage
1
LR Excel(10 latest paper) on selected topic & Base paper
5
2
Motivation of the study
5
3
Conceptual model & GAP(3—5 gaps)
5
4
Theory behind the model & Measurement scale
5
5
Hypothesis Writing
5
6
Proposed Methodology(sampling, data collection)
5
7
Introduction /Managerial Implication
5
8
Conclusion/Future Research/References
5
Total
40