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he dimensions that distinguish a product from a service vary: intangibility of the service (that it does not contain physical properties for the consumer to feel, touch, smell, or “tryon”). The inseparability of the service provider from the consumer。 the variability of service from encounter to encounter。 and the fact that the service is perishable all create new and different marketing challenges for the service marketer. The service marketer must make an “intangible” tangible, make variability consistent, tell the customer that you, the customer, have a role in this process, participate in the successful oute, and that the service marketer must adjust for fluctuating demand and supply timing, are different from product marketers. Finally, the service marketer must ensure that customer expectations are matched by customer perceptions after the service is performed. The service provider can either municate lower expectations for their customers or develop processes to deliver to the customers’ expectations each time. Less than a 100 percent “match” between expectations and performance for the service provider leads to dissatisfied consumers who use past experiences, wordofmouth (mouse), and physical clues with assigned higher degree of importance than for physical products. MARKETING DISCUSSIONColleges, universities, and other educational institutions can be classified as service organizations. How can you apply the marketing principles developed in this chapter to your school? Do you have any advice as to how they could bee better service marketers? Student answers will differ. However, the following marketing principles developed in the chapter were: A service differs from a product in its intangibility, inseparability, variability, and perishability. Service marketing must be done holistically and calls for external, internal, and interactive marketing. Service marketers must manage service quality by understanding the effects of each service encounter. To brand a service, the pany must differentiate its brand through primary and secondary service features and often employs multiple brand elements. Service panies that excel in service have the following practices: A strategic concept toward service, topmanagement’s mitment to quality, high standards, selfserving technologies, systems to monitor service performance and customer plaints, and an emphasis on employee satisfaction. Productbased firms must provide postpurchase service by identifying the “services” customer’s value the most and the relative importance of each.MARKETING SPOTLIGHT—Southwest AirlinesDiscussion Questions:1) What have been the key success factors for Southwest Airlines?a. It has a strategic concept.b. A history of topmanagement mitment to quality.c. High standards.d. Systems for monitoring service performance and customer plaints. e. An emphasis on employee satisfaction.2) Where is Southwest Airlines vulnerable?a. Other airlines duplicating the lowcost concept.b. Other airlines trying to duplicate Southwest’s mitment to customer service. 3) What should it watch out for?a. New or existing airlines efforts to duplicate their strategic direction.b. Increases in selfservice technologies in the airline business.c. Internal placency in meeting its high standards of customer service. 4) What remendations would you make to senior marketing executives going forward?a. First, do not rest on past successes—continue your strategic direction.b. Second, monitor changes in your target market’s definition of “service” and adapt to those changes. DETAILED CHAPTER OUTLINE As a pany finds it harder and harder to differentiate physical products, it turns to service differentiation. Companies seek to develop a reputation for superior performance in ontime deliveries, better and faster answering of inquiries, and quicker resolution of plaints. Service businesses increasingly fuel the world economy.THE NATURE OF SERVICES The Bureau of Labor Statistics reports that the serviceproducing sector will continue to be the dominant employment generator in the economy, adding million jobs by 2010. Service Industries Are Everywhere A) Government sector.B) Private nonprofit sector.C) Business sector.D) Manufacturing sector.E) Retail sector.F) We define service as any act or performance that one party can offer to another that is essentially intangible and does not result in the ownership of anything. Its production may or not be tied to a physical product. G) Manufacturers, distributors, and retailers can provide valueadded services or simply excellent customer service to differentiate themselves. H) Many pure service firms are now using the Internet to reach customers. Review Key Definition here: serviceCategories of Service MixA) Pure tangible goods.B) Tangible goods with acpanying services.C) Hybrid.D) Major service with acpanying minor goods and services.E) Pure service.F) Because of this varying goodstoservices mix it is difficult to generalize about services with further distinctions:1) Services vary as to whether they are:a. Equipmentbased.b. Peoplebased.2) Service panies can choose among different processes to deliver their service. 3) Some services require the client’s presence and some do not. 4) Services differ as to whether they meet a personal need or a business need. Service providers typically develop different marketing programs for personal and business markets. 5) Service providers differ in their objectives and ownership. G) The nature of the service mix also has implications for how consumers evaluate quality. H) For some services, customers cannot judge the technical quality even after they have received the service. Figure shows various products and services according to difficulty of evaluation. 1) At the left are goods high in sear