SERVICES

1
SERVICES

• Dr. Metzner

EMGT451 2/2004
2
STATISTICS ON SERVICES

• 75 of Employment is in Services
• 90 of New Jobs is in Services
• 16 of the 1985 GNP is in Services

3
The Boom in Service-Related U.S. Employment
EMPLOYED IN SERVICES
YEAR
4
Business Product-Service Tangibility
Classification

• Oil and grease
• Office supplies
• Machinery
• Personal computers
• Telecommunications systems
• Meeting or convention hotel
• Advertising agencies
• Plant janitorial and cleaning
• Freight Transportation
• Management consulting
• Executive management seminars

TANGIBLE DOMAIN
INTANGIBLE DOMAIN
5
THE CHARACTERISTICS OF SERVICES

• Intangibility
• Inconsistency
• Inseparability
• Inventory

6
Continuum of Evaluation for Different Products
HARD
MEDICAL DIAGNOSIS AUTO REPAIR ROOT CANAL LEGAL
SERVICES TELEVISION REPAIR CHILD
CARE HAIRCUTS VACATION RESTAURANT
MEALS AUTOMOBILES HOUSES FURNITURE JEWELRY CLOTHIN
G
HIGH IN CREDENCE QUALITIES
HIGH IN EXPERIENCE QUALITIES
EVALUATION
HIGH IN SEARCH VALUES
EASY
7
CUSTOMER PERCEPTIONS MODEL

• Gap 1 between Expected Service and Manager
  Perception of Expectations
• Gap 2 between Manager Expectations and
  Specification of the Service
• Gap 3 between the Specification of the Service
  and its Delivery
• Gap 4 between the Actual Delivery of the Service
  and What is Communicated to Consumers
• Gap 5 between the Customer Perception of the
  Service and the Customers Expectations

8
The Determinants of Perceived Service Quality
CUSTOMER

• WORD OF MOUTH

PERSONAL NEEDS
PAST EXPERIENCE
EXPECTED SERVICE
GAP 5
PERCEIVED SERVICE
GAP 1
EXTERNAL COMMUNICATION TO CUSTOMER
GAP 4
ACTUAL SERVICE
GAP 3
SPECIFICATION OF DESIRES
GAP 2
MANAGEMENT PERCEPTION OF EXPECTATIONS
MARKETER
9
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