Marketing Service Organisations. BM404 – 2006 Lecture 2. Overview. Defining services Understanding the services economy The service sector in Australia Mega-trends and the service sector: Professional services Characteristics of services Marketing implications. Defining services?.
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BM404 – 2006
Place, Cyber-space & Time
Place & Time
Satisfaction; Quality; Brand Loyalty
A framework for analysing servicesmarketing
ManagementManaging the 7Ps Requires Collaboration between Marketing, Operations, and HR Functions (Fig. 1.14)
Zeithaml, Bitner and Gremler (2006)
External Communications to Customers
Customer-Driven Service Designs and Standards
Company Perceptions of Consumer Expectations
Easy to evaluate
Difficult to evaluate
High in search
High in experience
High in credence
Adequate ServiceFigure 4.5Zones of Tolerance for DifferentService Dimensions
Source: L. L. Berry, A. Parasuraman, and V. A. Zeithaml, “Ten Lessons for Improving Service Quality,” Marketing Science Institute, Report No. 93-104 (May 1993).
Source: C. Fornell “Customer Satisfaction and Corporate Earnings,“ commentary appearing on ACSI website, May 1, 2001,
Source: James L. Heskett, W. Earl Sasser, Jr., and Leonard A. Schlesinger, The Service Profit Chain, (New York, NY: The Free Press, 1997), p. 83.
Source: Rust & Oliver, 1994. p. 11
Knowledge and courtesy of employees and their ability to inspire trust and confidence.
Physical facilities, equipment, and appearance of personnel.
Caring, individualized attention the firm provides its customers.
Willingness to help customers and provide prompt service.The Five Dimensions of Service Quality
In groups of five, choose a services industry and spend 10 minutes brainstorming specific requirements of customers in each of the five service quality dimensions. Be certain the requirements reflect the customer’s point of view.
Bellboy Takes to Room
Request Wake-Up Call
Delivery and Installation
to service delivery
to customer needs
actions and attitudes
to problem customers
Attempt to accommodate
Adjust the system
Promise, but fail to follow through
Show unwillingness to try
Embarrass the customer
Laugh at the customer
“Pass the buck”Adaptability
Source: From “Managing the Evidence of Service” by M. J. Bitner from The Service Quality Handbook, eds. E. E. Scheuing and W. F. Christopher (1993), pp. 358-70.