Summary ANIKA OCHEL
Services Marketing
(MRKT 7003)
,CONTENT
Foundations of Services Marketing ......................................................................................................................... 4
Definition and Meaning of Services Marketing ................................................................................................... 4
Services ........................................................................................................................................................... 4
Service Industries ............................................................................................................................................ 4
How Marketing of Services differs from Goods .................................................................................................. 4
Difference between Services and Good .......................................................................................................... 4
Scale of Market Entities .................................................................................................................................. 5
Servuction Model .................................................................................................................................................... 6
Triangle of Services Marketing ................................................................................................................................ 7
Distinctive Characteristics of Services ..................................................................................................................... 8
Intangibility ......................................................................................................................................................... 8
Inseparability (of Production and Consumption) ................................................................................................ 8
Heterogeneity / Variability .................................................................................................................................. 9
Perishability ......................................................................................................................................................... 9
Non-Ownership ................................................................................................................................................. 10
Extended Marketing Mix – 7Ps ............................................................................................................................. 11
Product .............................................................................................................................................................. 11
Price .................................................................................................................................................................. 11
Place .................................................................................................................................................................. 11
Promotion ......................................................................................................................................................... 11
People ............................................................................................................................................................... 12
Process .............................................................................................................................................................. 12
Physical Evidence .............................................................................................................................................. 12
Consumer Behaviour in a Services Context .......................................................................................................... 13
Categories of Service ......................................................................................................................................... 13
Three-Stage Model of Services Consumer Behaviour ....................................................................................... 13
Pre-Purchase Stage ....................................................................................................................................... 13
Service Encounter Stage ................................................................................................................................ 15
Summary Services Marketing – Anika Ochel
1
, Post-Encounter Stage .................................................................................................................................... 16
Service Perception ............................................................................................................................................ 16
Compatibility Management .......................................................................................................................... 16
Service Quality .............................................................................................................................................. 17
ServQual Survey ............................................................................................................................................ 17
Moments of Truth ......................................................................................................................................... 17
Critical Incident Technique ............................................................................................................................ 18
The Service Product .............................................................................................................................................. 19
Core Product ..................................................................................................................................................... 19
Supplementary Services .................................................................................................................................... 19
Distributing Services.............................................................................................................................................. 20
Distribution in a Service Context ....................................................................................................................... 20
Distribution Options for Serving Customers ..................................................................................................... 20
E-Commerce and Online Services ..................................................................................................................... 20
Franchising ........................................................................................................................................................ 21
Company-Owned Channels ........................................................................................................................... 21
Service Intermediaries .................................................................................................................................. 21
Service Pricing ....................................................................................................................................................... 22
Factors in Service Price Setting ......................................................................................................................... 22
Internal Factors Affecting Pricing .................................................................................................................. 22
External Factors Affecting Pricing ................................................................................................................. 23
Foundations Underlying Pricing Strategy ...................................................................................................... 23
Pricing Strategy ................................................................................................................................................. 23
Cost-Based Pricing Strategy .......................................................................................................................... 23
Value-Based Pricing Strategy ........................................................................................................................ 23
Competition-Based Pricing Strategy ............................................................................................................. 24
New-Service Pricing Strategy ........................................................................................................................ 24
Prestige Pricing Strategy ............................................................................................................................... 24
Price Adjustment Strategies .......................................................................................................................... 25
Time-Dependent Capacity and its Impact on Pricing ........................................................................................ 25
Summary Services Marketing – Anika Ochel
2
Services Marketing
(MRKT 7003)
,CONTENT
Foundations of Services Marketing ......................................................................................................................... 4
Definition and Meaning of Services Marketing ................................................................................................... 4
Services ........................................................................................................................................................... 4
Service Industries ............................................................................................................................................ 4
How Marketing of Services differs from Goods .................................................................................................. 4
Difference between Services and Good .......................................................................................................... 4
Scale of Market Entities .................................................................................................................................. 5
Servuction Model .................................................................................................................................................... 6
Triangle of Services Marketing ................................................................................................................................ 7
Distinctive Characteristics of Services ..................................................................................................................... 8
Intangibility ......................................................................................................................................................... 8
Inseparability (of Production and Consumption) ................................................................................................ 8
Heterogeneity / Variability .................................................................................................................................. 9
Perishability ......................................................................................................................................................... 9
Non-Ownership ................................................................................................................................................. 10
Extended Marketing Mix – 7Ps ............................................................................................................................. 11
Product .............................................................................................................................................................. 11
Price .................................................................................................................................................................. 11
Place .................................................................................................................................................................. 11
Promotion ......................................................................................................................................................... 11
People ............................................................................................................................................................... 12
Process .............................................................................................................................................................. 12
Physical Evidence .............................................................................................................................................. 12
Consumer Behaviour in a Services Context .......................................................................................................... 13
Categories of Service ......................................................................................................................................... 13
Three-Stage Model of Services Consumer Behaviour ....................................................................................... 13
Pre-Purchase Stage ....................................................................................................................................... 13
Service Encounter Stage ................................................................................................................................ 15
Summary Services Marketing – Anika Ochel
1
, Post-Encounter Stage .................................................................................................................................... 16
Service Perception ............................................................................................................................................ 16
Compatibility Management .......................................................................................................................... 16
Service Quality .............................................................................................................................................. 17
ServQual Survey ............................................................................................................................................ 17
Moments of Truth ......................................................................................................................................... 17
Critical Incident Technique ............................................................................................................................ 18
The Service Product .............................................................................................................................................. 19
Core Product ..................................................................................................................................................... 19
Supplementary Services .................................................................................................................................... 19
Distributing Services.............................................................................................................................................. 20
Distribution in a Service Context ....................................................................................................................... 20
Distribution Options for Serving Customers ..................................................................................................... 20
E-Commerce and Online Services ..................................................................................................................... 20
Franchising ........................................................................................................................................................ 21
Company-Owned Channels ........................................................................................................................... 21
Service Intermediaries .................................................................................................................................. 21
Service Pricing ....................................................................................................................................................... 22
Factors in Service Price Setting ......................................................................................................................... 22
Internal Factors Affecting Pricing .................................................................................................................. 22
External Factors Affecting Pricing ................................................................................................................. 23
Foundations Underlying Pricing Strategy ...................................................................................................... 23
Pricing Strategy ................................................................................................................................................. 23
Cost-Based Pricing Strategy .......................................................................................................................... 23
Value-Based Pricing Strategy ........................................................................................................................ 23
Competition-Based Pricing Strategy ............................................................................................................. 24
New-Service Pricing Strategy ........................................................................................................................ 24
Prestige Pricing Strategy ............................................................................................................................... 24
Price Adjustment Strategies .......................................................................................................................... 25
Time-Dependent Capacity and its Impact on Pricing ........................................................................................ 25
Summary Services Marketing – Anika Ochel
2
