Managment Dynamics Notes

Exam Notes – Management Dynamics 2015-10-13

Short Answer Notes

Week 4 – Services

* Service sector is the engine of economic growth in developed and most developing countries today;

Services (rather than manufactured goods) are becoming the mainstream focus of marketing

Defining Service

* Any act, performance or experience that one party can offer to another

* Essentially intangible, does not result in the ownership of anything

* Something that may be bought or sold but cannot be dropped physically

Differences between goods and services

* Intangibility

* Simultaneity/inseparability

* Perishability

* Heterogeneity/variability

Differences between goods and services

* Operational inputs and outputs tend to vary more widely

* The times factor often assumes great importance

* Distribution may take place through non-physical channels

How do services differ from one another?

* The degree of tangibility/intangibility of service processes

* The type of service offering

* Who or what is the direct recipient of service processes?

* The place of service delivery

* Customisation versus standardisation

* Relationship with customers

Types of Service

* Distribution services

* Producer services

* Social services

* Personal services

Levels of customer contact

* High-contact services/personal-interactive

* Medium-contact services/task-interactive

* Low-contact services/maintenance-interactive

Service as a system

* Service operations system can be divided into those involving the actors (or service personnel) and those involving the stage set (or physical facilities, equipment and other tangibles)

* Service delivery system concerned with where, when and how the service product is delivered to the customer

* Service marketing system all the different ways in which customer may encounter or learn about the service organisation

To be successful, services need to...