MARKETINGMANAGEMENT12thedition13DesigningandManagingServicesKotlerKeller13-2ChapterQuestionsWhatarethecharacteristicsofproductsandhowcantheybeclassified?Howcancompaniesdifferentiateproducts?Howcanacompanybuildandmanageitsproductmixandproductlines?Howcancompaniescombineproductstocreatestrongco-brandsoringredientbrands?Howcancompaniesusepackaging,labeling,warranties,andguaranteesasmarketingtools?13-3ServiceAnyactofperformancethatonepartycanofferanotherthatisessentiallyintangibleanddoesnotresultintheownershipofanything.Itsproductionmayormaynotbetiedtoaphysicalproduct.13-4ServiceSectorsGovernmentPrivate,nonprofitBusinessManufacturingRetail13-5CategoriesofServiceMixPuretangiblegoodGoodwithaccompanyingserviceHybridServicewithaccompanyinggoodsPureservice13-6ServiceDistinctionsEquipment-basedorpeople-basedServiceprocessesClient’spresencerequiredornotPersonalneedsorbusinessneedsObjectivesandownership13-7DistinctiveCharacteristicsofServicesIntangibilityInseparabilityVariabilityPerishability13-8PhysicalEvidenceandPresentationPlacePeopleEquipmentCommunicationmaterialSymbolsPrice13-9HowtoIncreaseQualityControlInvestingoodhiringandtrainingproceduresStandardizetheservice-performanceprocessMonitorcustomersatisfaction13-10MatchingDemandandSupplyDemandsideDifferentialpricingNonpeakdemandComplementaryservicesReservationsystemsSupplysidePart-timeemployeesPeak-timeefficiencyIncreasedconsumerparticipationSharedservicesFacilitiesforfutureexpansion13-11Table13.1FactorsLeadingtoCustomerSwitchingBehaviorPricingInconvenienceCoreServiceFailureServiceEncounterFailuresResponsetoServiceFailureCompetitionEthicalProblemsInvoluntarySwitching13-12GapsthatCauseUnsuccessfulServiceDeliveryGapbetweenconsumerexpectationandmanagementperceptionGapbetweenmanagementperceptionandservice-qualityspecificationsGapbetweenservice-qualityspecificationsandservicedeliveryGapbetweenservicedeliveryandexternalcommunicationsGapbetweenperceivedserviceandexpectedservice13-13DeterminantsofServiceQualityReliabilityResponsivenessAssuranceEmpathyTangibles13-14BestPracticesStrategicconceptTop-ManagementcommitmentHighstandardsSelf-ServicetechnologiesMonitoringsystemsSatisfyingcustomercomplaintsSatisfyingemployees13-15DevelopingBrandStrategiesforServicesChoosingbrandelementsEstablishingimagedimensionsDevisingbrandingstrategy13-16CustomerWorriesFailurefrequencyDowntimeOut-of-pocketcosts