Page 15 - DMGT510_SERVICES_MARKETING

Services Marketing

Notes Thomas 1. Primarily equipment based Although operational rather than
(1978) a. automated (e.g., car wash) marketing in orientation, provides a
b. monitored by unskilled operators (e.g., useful way of understanding
product attributes.
movie theatre)
c. operated by skilled personnel (e.g., airline)
Chase Primarily people-based Recognises that product variability
(1978) a. ‘unskilled labour (e.g., lawn care) is harder to control in high contact
b. skilled labour (e.g., repair work) services because customers exert
more influence on timing of
c. professional staff (e.g., lawyers, dentists) demand and service features due to
their greater involvement in the
service process.
Kotler Extent of customer contact required in service Synthesises previous work,
(1980) delivery recognises differences in purpose of
a. high contact (e.g., health care, hotels, service organisation.
restaurants)
b. low contact (e.g., postal service, wholesaling)
Lovelock 1. People based vs. equipment-based Synthesises previous classification
(1980) 2. Extent to which client’s presence necessary and adds several new schemes.
3. Meets personal needs vs. business needs Proposes several categories within
4. Public vs. private, for-profit vs. non-profit each classification. Concludes that
5. Basic demand characteristics defining object served is most
- object served (persons vs. property) fundamental classification scheme.
Suggests that valuable marketing
- extent of demand/supply insights would come from
- discrete vs. continuous relationships between combining two or more
customers and providers classification schemes in a matrix.
6. Service content and benefits
- extent of physical goods content
- extent of personal service content
- single service vs. bundle of services
- timing and duration of benefits

These classifications not only demonstrate the diversity of services but also suggest how important
it is in a specific situation to carefully analyse the detailed nature of the service operation. The
general characteristics of services remain unchanged irrespective of the nature of service business
where the customer is always a person or group of persons; the service is perceived more or less
intangibly, some kind of interaction between the customer and some parts of the production
system of the service provider–including personnel, technology, or both – always occurs, and
some kind of input from the customer is always required in the process.
These classifications do not suggest that a specific service is so unique that the basic fundamentals
of managing services do not apply to them. However, they do lay emphasis on various aspects
of service operation, types of resources to be used and how to manage the process depending on
the nature of service and the interface with the customers.

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