Service Encounters Range
Slide © 2007 by Christopher Lovelock and Jochen Wirtz
Kunz - Services Marketing
3
Kunz - Services Marketing
4
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
5
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
6
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
7
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
8
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
9
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 décor; 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