T10 - services

Question 1

Service definition

Answer 1

• intangible goods, providing an experience or fulfilling a need or want

Question 2

Service-dominant logic

Answer 2

• products all provide value to the user/consumer
• value is derived from using the product
• value is created when engaging with the service or product provider
• therefore, everything done in marketing should be focused on how to best service the customer - give them the best experience because the customer is always involved with the product

Question 3

Service product classification - consumer or business

Answer 3

1. consumer
   - purchased by individual for own private consumptiomn
   * banking
   * hairdressers
   * restaurants
2. b2b
   - purchased by individuals and orgs for use in production of other products or for daily business operations
   * lawyers
   * accountants
   * engineers

Question 4

Unique characteristics of services (4)

Answer 4

1. intangible
   - cannot examine quality of service before purchasing
2. inseparable
   - impossible to separate production of the service and consumption of the service
   - the service provider is the service, product and brand
   - service created the same time that it is consumed
   - so service received is determined by service provider
   > cannot be readily mass produced
   > cannot be obtainable whenever you want
3. heterogeneity
   - services provided by humans
   - so will always get a different ‘service’
   - different skill, mood of the person, interaction b/w consumer and producer
4. perishable
   - cannot store services for use at later date

Question 5

Extended services marketing mix (3)

Answer 5

1. people
   - customer will have close interaction with the provider so the provider is important
   - get competent staff who are attentive, customer service focused etc
2. process
   - all systems, producers used to create, communicate and deliver the exchange
   - consider how customers have two expectations (functional - the technical skills involved and customer service - service experience)
3. physical evidence
   - tangible clues as to quality of the service