Services Marketing
Chapter 1 : Understanding Services
Factors Influencing the Growth of the Service Sector
Demographic Changes
Social Changes
Economic Changes
Technological Changes
Political and Legal Changes
Policy Changes
Services Defined
Tangibility Spectrum
Characteristics of Services
Intangibility
Heterogeneity
Inseparability
Perishability
Generic Differences Between Goods and Services
Nature of the Product
Problems in Quality Control
Involvement of the Customer in Production and Delivery
Absence of Inventories
Structure and Nature of Distribution Channels
Importance of Prompt Service
Difficulty in Evaluating Service Quality
Classification of Services
Classification based on the Degree of Involvement of the Customer
Classification based on the Service Tangibility
Classification based on Skills and Expertise Required
Classification based on the Business Orientation of Service Provider
Classification based on the Type of End-User
Developing Frameworks For Analyzing Services
What is the Type of Service
What is the Nature of Relationship Shared by the Customer with the Service Organization
How is the Service Delivered
What is the Type Demand and Supply for the Service
To What Extent is the Service Provider Needed to Customize Service and Exercise Judgement
Myths About Services
Chapter Summary
|
Changes in demographic, social and economic factors,
as well as institutional and policy changes are some of the major factors
that influence the growth of the service sector. Most authors who define
services emphasize the intangible nature of services in their definitions.
However in some services like restaurant and retailing, the service is
bundled with a tangible component.
The important characteristics of services are intangibility, heterogeneity,
inseparability and perishability. Intangibility refers to the lack of a
tangible component associated with services. Heterogeneity refers to
inability to maintain consistency in the way services are offered to
customers. Inseparability refers to the need for customer to interact with
the service provider to obtain the service. |
|
Perishability refers to the inability of service
providers to maintain service inventories to meet future demand. Christopher
H. Lovelock attempted to classify services based on factors such as nature
of the product, the customer as a part of the product, problems in quality
control, involvement of the customer in the production process, absence of
inventories, structure and nature of distribution channels, importance of
prompt service, and difficulty in evaluating service quality.
Services can also be classified based on the degree of customer involvement
in the service delivery process, service tangibility, skills and expertise
required, business orientation of the service provider, and type of
end-user. Lovelock suggested that firms can market services better by
dividing them into meaningful categories.
He framed five questions to determine the category into which a particular
service falls – What is the type of service? What is the nature of
relationship shared by the customer with the service organization? How is
the service delivered? What is the type of demand and supply for the
service? To what extent is the service provider needed to customize service
and exercise judgement?
There existed some misconceptions about the service sector, which have been
eliminated as the time progressed and the economies worldwide developed.
Economies worldwide have proved that the shift from agriculture to
manufacturing to services is natural in any developing economy and it only
indicates the improving standard of living of people in the economy.
Next Chapter>>
|
|
Short Case Studies / Caselets