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Services and Nonprofit
Organization Marketing
Dr. Close
Services are HUGE!
• Service is a deed, a performance, or effort
that can’t be physically possessed
• You will likely work in services
• I work in services (education and
research)
• The most job growth is in services (here,
education, healthcare, casinos, finance)
• Vegas thrives on services
Services are…
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Intangible
Inseparable
Heterogeneous
Perishable
Harder to search for (experience or
credence goods)
Importance of Services
• Tradeoffs:
– Desire: high service and low price (difficult for
companies to do)
– Choosing a service level:
– Too low: consumers go elsewhere (FedEx/Kinkos:
constantly searching for ways to improve service)
– Too high: customers will not pay
– What services do you just refuse to pay for?
Service Quality (SERVQUAL)
To be a good provider, I better be…
• Reliable
• Responsive
• Trustworthy
• Knowledgeable
• Empathetic
• Incorporating Tangibles
(just being a few of these things won’t cut it…)
Service Quality Experiences
What are your experiences of
horrible customer service?
How to Give Horrible Service
(Service Gaps)
1. Don’t listen to what your customers want
(i.e., only listen to your CEO or wallet)
2. Don’t act on customers’ wants
3. Hire people without skills or a care, and
don’t train them
4. Tell the customer whatever they want to
hear (i.e., overpromise and underdeliver)
5. Don’t meet (or barely meet) customers’
expectations (i.e., ignore people and
insult their intelligence)
Relationships in Service
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Attract, develop and retain clients
Satisfaction is not enough; instill more
loyalty (attitudinal and behavioral)
Going to the competition = cheating on
you
How to Instill Relationships
in Service Industries
1. Pricing incentives for loyal customers
2. Nonpricing incentives for loyal customers
(e.g., airline points)
3. Build social or emotional bonds (e.g.,
sponsor a UNLV game)
4. Build structural bonds (e.g., Amex or
BMW concierege services)
Service Strategy
• Service as process (people, possession,
mental stimulus, or information
processing)
• Core versus supplementary services
• Customization versus standardization
The Service Mix
• Distribution (i.e., place)
• Price: by consumption unit (e.g., 1 haircut)
or by time (e.g., long hair versus short
hair)
• Promotion: stress tangible cues and create
image (e.g., T-Mobil service with
Catherine Zeta-Jones’ image)
Promotion for Services
Promotion for Services
(attempt 2)
Services and Profit
• Not all services are for profit
• Non profit services and organizations are
a large part of society
• What nonprofits can you think of?
Non-Profit Marketing
Non-Profit Marketing
• Non-profits are over 20% of U.S.
economic activity
• Government taxes> housing, healthcare,
or food costs
• Hard to service someone who doesn’t
want it (e.g., AA, gambling help)
• Must complement (vs. compete with) for
profit businesses
Summary
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Importance of services
Services vs. other goods
Service quality traits
Service gaps
Service marketing mix
Relationships in service
Non-profit services
Any questions??