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Lecture 8 - Strategic Services Decisions
Services
(Researched Examples in blue)
A service is an intangible product involving a deed, a performance or an effort that cannot be
physically processed
There are Consumer services and also business services
...
Marketers must find images aswell as physical evidence to
enhance perceptions of the service quality
...
Personnel must be standardised to provide
high quality but this cannot be controlled
...
Reliability
2
...
Competence
4
...
Courtesy
6
...
Credibility
8
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Understanding consumer
10
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It is concerned with
1
...
Cost Cutting
3
...
Internal culture creation and enhancement
Cost Cutting tends to be a result of increasing competition, slow industry growth projections,
increasing equality across providers and increasing levels of customer expectations
Metters and Vargas (2000) argue that for services to streamline and improve efficiencies, they
must redesign the jobs of the personnel involved in the service delivery process
Available technology can help to cut costs while improving the service such as apps
However when technology isn't available management should consider decoupling service tasks to
gain efficiency
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This can be done by Brand sharing alliances or Asset sharing alliances or outsourcing
Internal employee culture creation and enhancement is to reduce employee turnover, keeping
them happier and more productive
...
(Heskett et al 1997)
Competitive advantage for service firms lies in continually exceeding customer expectations (Ford
et al, 2001)
• Successful segmentation
• Identify attractive customers
• Restructure business to cater to their needs
• Create sustainable perceptual differentiation
• Stay focused on customer satisfaction
Not only meet customer expectations, exceed them
Service can be seen as a drama (Grove and Fisk 1983) with a stage actors and an audience



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