Chapter 1 Introduction to Services 29 ;; I
Summary This chapter has set the stage for further learning about services marketing by pre- i
3‘5 senting information on changes in the world economy and business practice that
A ‘7’” g; have driven the focus on service: the fact that services dominate the modern econo-
mies of the world; the focus on servicewas a competitive business imperative; spe- 32;
5‘ i: cific needs of the deregulated and professional service industries; the role of new 3″
service concepts growing from technological advances; and the realization that the
A 1′ characteristics of services result in unique challenges and opportunities. The chapter I l
5?; 1: presented a broad definition of services as deeds, processes, and performances, and
it drew distinctions among pure service, value-added service, customer service, and [I 3
derived service. ‘3 l
T:-~f}€%: Building on this fundamental understanding of the service econbmy, the chapter l3
3 presents the key characteristics of services that underlie the need for distinct strate-
3 2‘ a ’=.:; gies and concepts for managing service businesses. These basic characteristics are that 3
E 3 ’ t services are intangible, heterogeneous, produced and consumed simultaneously, and i
i; _’ perishable. Because of these characteristics, service managers face a number of chal- {3′
3 .1 321 lenges in marketing, including the complex problem of how to deliver quality services ; 3
3 j consistently. 3 f
3 3._’ The chapter ended by describing two themes that provide the foundation for future
l ‘ it chapters: the expanded marketing mix for services and customer focus as a unifying
3 theme. The remainder of the text focuses on exploring the unique opportunities and 3
3 2. , challenges faced by organizations that sell and deliver services and on developing i
‘3, solutions that will help you become an effective service champion and manager. 3
3 ,3: 3 I , 3 3
I , Discussion 1. What distinguishes service offerings from customer service? Provide specific
a: Questions examples- l
3 t2 ‘ I 2. How is technology changing the nature of customer service and service offerings? 33
3 3. What are the basic characteristics of services compared with goods? What are the 3
3]; _ ‘ ‘ implications of these characteristics for IBM Global Service, for Southwest Air- 3 3
1’;_,, j lines, or for the company you work for? I E
4. One of the underlying frameworks for the text is the expanded marketing mix for I
3 ‘ services. Discuss why each of the three new mix elements (process, people, and 3
physical evidence) is included. How might each of these communicate with or help 3 l
3 , _ ‘ to satisfy an organizatiOn’s customers? 3f
j ~ ‘. 5. Think of a service job you have had or currently have. How effective, in your opin-
3 3‘ r . 3 ion, was or is the organization in managing the elements of the service marketing
6. Again, think of a service job you have had or currently have. How did or does the 3 ‘ 3
3 – 3 organization handle relevant challenges listed in Table 1.2? 3’ 3
T__‘ji? 3 ‘ 7. How can quality service be used in a manufacturing context for competitive advan~ ! 3
3f? I tage? Think ofyour answer to this question in the context of automobiles, computers, 3 3
or some other manufactured product you have purchased. 3 s 3
‘i‘-“‘-“.’ 1 ‘ – _ 2 ‘ ‘ I 3
3 _ Exe rcises ‘ l. Roughly calculate your budget for an average month. What percentage of your bud- 3 3
get goes