Dylan Boet
IMEM YEAR 1 Block C
,Table of Contents
Lecture Week 1 3
Chapter 9 – Book 4
Lecture Week 2 6
Chapter 11 – Book 9
Chapter 12 – Book 11
Lecture week 3 17
Guest Lecture: Gresi Sanje 21
Lecture week 4 22
Chapter 13 - Book 25
Lecture week 5 28
Chapter 14 - Book 33
Guest Lecture Budi Gonzalez de Chavez (J. Walter Thompson Amsterdam) 40
,Lecture Week 1
Services are acts, efforts, or performances exchanged from producer to user without
ownership rights.
Characteristics of Services are:
Intangibility
o Cannot be seen, tasted, felt, heard, or smelt before they are bought
o Service providers need to provide evidence of the benefits
You can translate intangibility into tangibility with the help of marketing responses. Provide
tangibility through physical appearance such as furniture, employee uniforms, or a logo.
Inseparability
o Services produced and consumed simultaneously
o Cannot be separated from providers, whether people or machines
o Customers are always involved, and have influence
Variability
o Quality may vary greatly depending on who provides the service, when and
how
Perishability
o Services cannot be stored for later sale or use
Marketing responses to perishability:
Adjust pricing to influence demand
Adjust service to match demand (capacity management)
Classifications of Services are:
Service continuum
o Most company offerings to customers contain an element of service
Core and augmented services
o Core service is a benefit that a customer gets from the service
o Augmented services are additional offerings that differentiate the firm
Example: Airline transportation
Core: Travel
Augmented Services: frequent flyer miles, in-flight entertainment services
and internet access.
Another important part of services is Service Quality
The key to success is to exceed customer service quality expectations
The moments of truth:
o The time and place when and where the service provider has the opportunity
to demonstrate to the customer the quality of its services
, Measuring service quality:
Gap Analysis – measurement tool that gauges the difference between a customer’s
expectation and reality
SERVQUAL scale – scale to measure customer expectations and perceptions
Critical Incident Technique – technique to collect and analyse customer complaints
to identify critical incidents
Service failure and recovery
When services do fail, recover fast!
o Apologize
o Resolve the problem
o Avoid further inconvenience for the customer
Analyse what happened to eliminate future failures
Chapter 9 – Book
Services are acts, efforts or performances exchanged from producer to user without
ownership rights.
Intangibility is the characteristic of a service that means customers can’t see, touch or smell
service.
Perishability refers to the characteristic of a service that makes it impossible to store for
later sale or consumption.
Capacity management – representing the process by which organisations adjust their
services in an attempt to match supply with demand.
Variability is the characteristic of a service which means that even the same service
performed by the same individual for the same customer can vary.
Inseparability is the characteristic of a service, meaning that it is impossible to separate the
production of a service from its consumption.
The central role employees play in making or breaking a service underscores the importance
of the service encounter, or the interaction between the customer and the service provider.
The most expertly cooked meal is not appreciated if an unpleasant or incompetent waiter
brings it to the table.
To minimise the potentially negative effects of bad service encounters and t save on labour
costs, some service businesses are experimenting with disintermediation, which means
removing the ‘middleman’ and thus eliminating the need for customers to interact with
people at all. Like self-service checkouts.