Page 46 - DMGT510_SERVICES_MARKETING

Unit 3: The Service Marketing Mix and Purchase Process

The perception of a service by a customer also depends on the other customers receiving the Notes
same service. Basically, the image of the service is largely affected by the views and characteristics
of other users.

Example: A hotel like Le Meridian has developed the image of an elite-class hotel with
high-spending and high-profile visitors.

Further, the behaviour or performance of other consumers largely affects the service production
and delivery process. Fellow consumers have the power to either degrade the service quality or
elevate it.

Example: When a person behaves badly at a restaurant, the total experience of others
gets negatively affected.
Similarly, when a customer behaves pleasantly in a restaurant and creates a good ambience, it
enhances the experience of other customers as well.

Process

The production and delivery process in the manufacturing sector is easier than in the services
sector. Marketers of services are often confused, as there is little difference between marketing
and operations management in services. This is because the production, delivery and
consumption of services take place simultaneously.

Example: A person in a movie theatre is required to purchase the ticket first, get his
tickets checked at the security clearance and then get inside.
Customer service encounters have an impact on the quality of service delivered by the
organization. A service encounter is the actual time period during which an interaction takes
place between the service provider and the customer. Among all the service encounters, a few
are very important for completing the service delivery process on a successful note.

!
Caution These particular interactions are named “critical incidents” and are directly
responsible for customer satisfaction or dissatisfaction.

These feelings of satisfaction or dissatisfaction may result either from their interaction with the
service personnel or from the interaction with the equipment or production processes.
Over the years, some service organizations have mechanized their service processes to reduce
the element of human judgment and error in service delivery.

Example: Movie theatres have introduced ticket kiosks to offer convenience to customers
and also reduce the human element in the service delivery process.
This mechanization helps reduce labour costs which along with competition in the service
industry have increased tremendously. Organizations have also started involving customers in
the production process to reduce costs. Though some customers’ expectations are not met, others
are ready to get involved in the service production activity for lower prices.

Example: A restaurant offering self-service can save on labour costs and can pass on the
savings to the customers in the form of lower prices.

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