After reading Chapter One, answer the following question:
List the four characteristics that distinguish services from goods and discuss how each would impact the marketing of a chain of fitness centers that is being started by six former Olympic athletes.
Chapter 2 Slides.pptx
After reading Chapter 2, answer the following questions:
List three sources of customer expectations that are market-controlled factors.
List two examples of sources of customer expectations over which the marketer has limited control.
McGraw-Hill/Irwin Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved. Part 1 FOUNDATIONS FOR SERVICES MARKETING 1-2 Chapter Introduction to Services 1 ▪ What are Services? ▪ Why Service Marketing? ▪ Service and Technology ▪ Characteristics of Services ▪ Service Marketing Mix ▪ Staying Focused on the Customer 1-3 Examples of Service Industries ▪ Health Care ▪ hospital, medical practice, dentistry, eye care ▪ Professional Services ▪ accounting, legal, architectural ▪ Financial Services ▪ banking, investment advising, insurance ▪ Hospitality ▪ restaurant, hotel/motel, bed & breakfast ▪ ski resort, rafting ▪ Travel ▪ airline, travel agency, theme park ▪ Others ▪ hair styling, pest control, plumbing, lawn maintenance, counseling services, health club, interior design 1-4 Contributions of Service Industries to U.S. Gross Domestic Product 1-5 Tangibility Spectrum 1-6 Why Service Marketing? ▪ Services dominate U.S. and worldwide economies ▪ Service as a business imperative in goodsfocused businesses ▪ Deregulated industries and professional service needs ▪ Service marketing is different ▪ Service leads to profits 1-7 Percent of U.S. Labor Force by Industry 1-8 Percent of U.S. Gross Domestic Product by Industry 1-9 Eight Central Paradoxes of Technological Products 1-10 Characteristics of Services Compared to Goods Intangibility Simultaneous Production and Consumption Heterogeneity Perishability 1-11 Comparing Goods and Services 1-12 Implications of Intangibility ▪ Services cannot be inventoried ▪ Services cannot be easily patented ▪ Services cannot be readily displayed or communicated ▪ Pricing is difficult 1-13 Implications of Heterogeneity ▪ Service delivery and customer satisfaction depend on employee and customer actions ▪ Service quality depends on many uncontrollable factors ▪ There is no sure knowledge that the service delivered matches what was planned and promoted 1-14 Implications of Simultaneous Production and Consumption ▪ Customers participate in and affect the transaction ▪ Customers affect each other ▪ Employees affect the service outcome ▪ Decentralization may be essential ▪ Mass production is difficult 1-15 Implications of Perishability ▪ It is difficult to synchronize supply and demand with services ▪ Services cannot be returned or resold 1-16 Search, Experience, and Credence Qualities 1-17 Challenges and Questions for Service Marketers ▪ Defining and improving quality ▪ Designing and testing new services ▪ Communicating and maintaining a consistent image ▪ Accommodating fluctuating demand ▪ Motivating and sustaining employee commitment ▪ Setting prices ▪ Organizing to facilitate strategic and tactical decision-making ▪