9. value through service Flashcards
service dominant logic
Value creation happens together with customers
▪ Customer relationship is central
* Development of long-term relationships
* Beneficial for company AND customer
definition service
The application of specialized competences (knowledge and
skills) through deeds, processes, and performances for the
benefit of another entity or the entity itself
categories of services
▪ People processing
▪ Directed at individual
▪ Service users visits in order to receive the offered services
▪ Possession processing
▪ Directed at physical possessions
▪ Service user is less involved in service process
▪ Service production can be separated from consumption
▪ Mental stimulus processing
▪ Directed at mind of an individual
▪ Information processing
▪ Service is associated with intangible asset
Service characteristics
Perishability
intangibility
variability
inseperability
Intangibilty
A deed, performance or effort
* Difficulty in evaluation
* Use tangible cues
* Benefits of non-ownership
perishability
- Consumption cannot be stored
- Match supply and demand
- Use of part-time staff
- Multi-skilling
- Participation by consumers
- Differential pricing
variablity
Standardization difficult
* Selection, training and rewarding of staff
* Evaluation systems
* Use of reliable equipment
inseperability
Simultaneous production and consumption
* Importance of service provider
* Selection, training and rewarding of staff
* Avoid inter-customer conflict
Managing services
Understand customer journey to better manage
▪ customer relationships
▪ service quality
▪ service productivity
▪ service staff
gap between expected and percieved service
Misconceptions
* Inadequate resources
* Inadequate delivery
* Exaggerated promises
managing service productivity
▪ Relationship between input and output
▪ Improving productivity by using
▪ Technology
▪ Customer involvement in production
▪ Balancing supply and demand
Service marketing mix
Product
Price
Place
Promotion
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People
Physical evidence
Process
people
Staff have a key position
▪ Set standards to improve service quality by employees
▪ Customer-first attitude
▪ Inter-customer effects
physical evidence
Service delivery environment
▪ Tangible goods that facilitate performance or communication
▪ Provide evidence for quality evaluation
