Chapter 13: Designing and
Managing Services
Prepared by: M Wahyu Gamal (B41 – 122121077)
Chapter Questions

How do we define and classify services and how do they differ from goods?

How do we market services?

How can we improve service quality?

How do services marketers create strong brands?

How can goods marketers improve customer support services?
Service Sectors
Government
Private
nonprofit
Business
Retail
Manufacturing
Categories of Service Mix
Pure tangible good
Good with accompanying services
Hybrid
Service with accompanying goods
Pure service
Figure 13.2 Continuum of Evaluation for
Different Types of Products
Distinctive Characteristics
of Services
Intangibility
Inseparability
Variability
Perishability
Physical Evidence and Presentation
Place
People
Equipment
Communication material
Symbols
Price
How to Increase Quality Control
Invest in good hiring and
training procedures
Standardize the
service-performance process
Monitor customer satisfaction
Matching Demand and Supply
Demand side
Supply side

Differential
pricing

Part-time
employees

Nonpeak demand


Complementary
services
Peak-time
efficiency

Reservation
systems
Increased consumer
participation

Shared services

Facilities for future
expansion

Improving Service Quality

Listening

Surprising
customers

Reliability

Basic service

Fair play

Service design

Teamwork

Recovery

Employee research

Servant leadership
Figure 13.4 Root Causes
of Customer Failure
Solutions to Customer Failures

Redesign processes and redefine customer roles to simplify service encounters

Incorporate the right technology to aid employees and customers

Create high-performance customers by enhancing their role clarity,
motivation, and ability

Encourage customer citizenship where customers help customers
Figure 13.5 Three Types of Marketing in
Service Industries
Figure 13.6 Service-Quality Model
Gaps that Cause Unsuccessful Service
Delivery

Gap between consumer expectation and management perception

Gap between management perception and service-quality specifications

Gap between service-quality specifications and service delivery

Gap between service delivery and external communications

Gap between perceived service and expected service
Determinants of Service Quality
Reliability
Responsiveness
Assurance
Empathy
Tangibles
Developing Brand Strategies
for Services
Choosing
Brand Elements
Establishing Image
Dimensions
Devising Branding
Strategy
Customer Worries
Failure frequency
Downtime
Out-of-pocket costs
Conclusion

Services are intangible, inseparable, variable, and perishable

Service marketing must be done holistically: It calls not only for external
marketing but also for internal marketing

Customers expectations play a critical role in their service experiences and
evaluations. Companies must manage service quality by understanding the
effects of each service encounter

To brand a service organization effectively, the company must differentiate
its brand through primary and secondary service features and develop
appropriate brand strategies

To provide the best customer support service for goods companies, a
manufacturer must identify the services customers value most and their
relative importance
Thank you