Services are Products too

Service and Branding

What are we buying?

Services are…

• Intangible– Even though they have “tangibility”

• Inseparable– Produced and consumed at same time; sometimes

even sold• Perishable– Cannot be stored

• Variable

How we measure good service?

• Reliable– Dependable, accurate, consistent

• Responsive– prompt

• Assurance– Knowledge and courtesy of employees

• Empathy– Caring, attention

• Tangibles– Physical aspects

Gap Model

• 5 Service gaps– Knowledge

• What customer wants and what management thinks they want

– Standards• What management thinks they want and quality specs

– Delivery• Gap between quality specs and service provided

– Communication• What company provides and what customers were told it provides

– Customer• Service they receive and what they want

The 4Ps of Service• Product

– Core and supplemental services– Customized or standardized

• Place– Convenience, location, number of outlets

• Promotion– Stress tangible cues– Endorsers– Image– Postpurchase

• Price– Revenue – maximize revenue– Operations – maximize cost efficiency– Patronage – maximize number of customers

Other Services

• Non Profits– PSAs– Cause marketing– Pricing decisions vary

Service Failure

• Listen to customer• Stay in control• Find a fair solution• Quickly resolve disputes

• Examples– Best Buy

Branding 101

• Reputation• Customer Service • A Promise • Price • Feeling • Attitude • Values – what the brand stands for

Examples of strong brands

Brand Equity

Service

• Can make or kill a brand• Strive for good service• Quick recoveries

• The customer is always right• 5 Easy Pieces