Professional Documents
Culture Documents
An Introduction to
Services
Chapter Objectives
Understand the basic differences between goods
and services.
Appreciate the factors that create the
customer's service experience.
Comprehend the driving forces behind the
increasing demand for services marketing
knowledge.
Understand the two organization models used in
service firms: the industrial management model
and the market-focused management model.
What is a Service?
Services: deeds, efforts, or
performances
Goods: objects, devices, or things
Contact personnel
Service providers
Other customers
(invisible)
Organization and
systems
Invisible
Customer A
Contact
Personnel
Or
Service
Provider
Customer B
Visible
Bundle of
service
benefits
received
by Customer A
Economic Impact
Industrial Management
Model
Industrial Management
Model
Consequences
Produce dead-end front-line jobs,
poor pay, superficial training, no
opportunity for advancement, if
any, access to company benefits.
Can lead to customer
dissatisfaction, flat or declining
sales revenues, high employee
turnover, little service productivity.
2006 Thomson Learning, Inc. Sout
The
The company service
exists to serve strategy
the customer
The
customer
The
organization
exists to serve
the needs of
the people who
serve the
customer
The
systems
The
people
2. Communicate the
service strategy to
the employees (Good
service starts at the Top)
3. Consistency of the
service strategy to
run the day-to-day
operations
4. Impact of
organizational
systems upon
customers
5. Importance of
organizational
systems and
employee efforts
6. The customer/service
provider interaction
(Critical incidents or moments of
truth)
Market-Focused
Management Model
Recognizes that employee turnover
and customer satisfaction are
clearly related.
Employs more full-time employees.
Attempts to utilize innovative data
to examine the firms performance
by looking beyond generally
accepted accounting principles.
2006 Thomson Learning, Inc. Sout