Cd6813 services

School of Business Management
Universiti Kebangsaan Malaysia
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Lodging – hotel, resort, b&b
Healthcare – hospital, clinic
Transportation – airlines, bus, railways, taxi
Education – university, college, kindergarten
Entertainment – cineplex, disco, themepark
Food & Beverage – restaurant, café, pub
Financial – bank, insurance, investment
MRO – workshop, service centre, cleaning
Telecommunication – telecom, internet
Legal – lawyer firm
Training/Consultancy – consulting, advertising, training
Social – escort, tourist guide, security firm
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V A L U E - A D D E D
 Performances
 Actions

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Services cannot be seen, felt, tasted
or touched before they are
purchased.

8
Tangibility SpectrumTangibility Spectrum
Tangible
Dominant
Intangible
Dominant
Salt
Soft Drinks
Detergents
Automobiles
Cosmetics
Advertising
Agencies
Airlines
Investment
Management
Consulting
Teaching
Fast-food
Outlets
Fast-food
Outlets













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Mktg Implications:
Difficult to describe
Difficult to measure Q
Cannot be stored
Cannot be easily patented

10
INTANGIBILITY:
SUGGESTED SOLUTIONS
 Use tangible clues/physical evidence
 Utilize personal sources of information
 Create a strong organizational image
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14
Awards: Pangkor Laut Resort
"Marina Bay Pangkor Laut Estates Listed in Best 101 Hotels in the World" by
Tatler Travel Guide U.K. (2006)
"20 Most Fabulous Spa Retreats in the World" by Australian Gourmet Traveller
Magazine (2005)
"Spa of Malaysia"and"Best Traditional Chinese Medicine (TCM) - Influenced
Spa" Spa Asia Crystal Awards - Spa Asia Magazine (2005)
'World's Top 25 Spas 2005' by The Sunday Telegraph, U.K.
Senses Wellness Award - "Best Beach Resort" by Senses Wellness Guide,
Germany (2005)
"Top Ten Spa Retreats - Overseas" byConde Nast Traveller U.K. - Readers'
Spa Awards (2005)
"Top Ten Best Overseas Resort" by Luxury Travel & Style Magazine, Australia
- The Gold List 2005
Five Star Diamond Award by The American Academy of Hospitality Sciences
(2002, 2003, 2004 & 2005)

16
Pretty Woman:
Julia Roberts gets a taste
of the high-life:
Regent Beverly
Wilshire,
9500 Wilshire Boulevard,
Beverly Hills

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No two services will be precisely alike
Services are heterogeneous across:
time,
organizations, and
people

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Heterogeneity
No two services will be precisely alike
- Produced and influenced by humans
- No two persons are precisely alike
- Even the same person may differ in his
performance from day to day (hour to
hour)

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Mktg Implication:
Standardization and quality control
are difficult to achieve

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Suggested Solution:
• Effective training of staffs
• Good standard practice & procedures
(P&P)
• Good HRM

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Services are produced and consumed
simultaneously

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Interactions “Service provider-Customer”–
Customer is present while the service is being
produced
Interactions “Customer-Customer”–
Customers interact with each other during the service
production process

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Mktg Implications:
Mass production is difficult
Service provider is part of the product itself and as
essential ingredient in the service experience for the
consumer
Quality depends on interactions between:
- customer – service provider
- customer – customer
•

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Suggested Solutions:
Focus on the training and selection of public contact
personnel
Develop strategies to manage consumers
- separate waiting areas (workshop),
minimized interaction SP-C
- by appointment (clinic),minimized interaction C-C
Develop multi-site locations

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Services cannot be saved, resold or returned.
- a seat on an airplane
- an hour of a lawyer’s time
- badly haircut

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Mktg Implications:
It is difficult to synchronize supply and demand with
services
- because service cannot be inventoried for
future use
Service cannot be returned and resold

_______________________________________________________________________________________
Suggested Solutions:
• Good mktg communication strategies
• Good pricing strategies

01/29/15
Product
Price
Place
Promotion
PeoplePeople
ProcessProcess
Physical EvidencePhysical Evidence

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All human actors who play a part in service
delivery and thus influence the buyer’s
perceptions; namely the firm’s personnel,
the customer, and other customers in the
service environment.

_______________________________________________________________________________________
All human actors who play a part in service
delivery and thus influence the buyer’s
perceptions; namely the firm’s personnel,
the customer, and other customers in the
service environment.
• Employees
• The customer
• Other customers

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The environment in which the service is
delivered and where the firm and customer
interact, and any tangible components that
facilitate performance or communication of
the service.

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The environment in which the service is
delivered and where the firm and customer
interact, and any tangible components that
facilitate performance or communication of
the service.
• Facility design
• Equipment
• Signage
• Employee dress
• Others – buss. cards,
brochures etc.

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The actual procedures, mechanism, and flow
of activities by which the service is delivered –
the service delivery and operating systems.

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The actual procedures, mechanism, and flow
of activities by which the service is delivered –
the service delivery and operating systems.
• Flow of activities
• Number of steps
• Customer involvement

39
Internal
Marketing
Interactive Marketing
External
Marketing
Company
(Management)
CustomersEmployees
“enabling the
promise”
“delivering the promise”
“making the
promise”
Source: Adapted from Mary Jo Bitner, Christian Gronroos, and Philip Kotler

Cd6813 services

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