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,TEST CONTENT
▪ This module is completed by means of an individual written test consisting of 50 multiple
choice questions (MC-test).
▪ Literature: Chapters 1, 2, 8, 9 and 10 of the book: Services Marketing, Integrating Customer
Focus Across the Firm. Fourth Edition (Wilson et al., 2021). Published by McGrawHill. ISBN:
9781526847805.
▪ Content of lectures, guest lectures and workshops.
▪ Module assignments.
▪ Articles, videos, and websites discussed during the module.
TABLE OF CONTENTS
SERVICES MARKETING CHAPTER 1........................................................................................................3
SERVICES MARKETING CHAPTER 5........................................................................................................8
SERVICES MARKETING CHAPTER 8......................................................................................................11
SERVICES MARKETING CHAPTER 9......................................................................................................27
SERVICES MARKETING CHAPTER 10....................................................................................................33
ASSIGMENTS WEEK 1..........................................................................................................................37
APPENDIX 1: SERVICES MARKETING CHAPTER 2.................................................................................39
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,SERVICES MARKETING CHAPTER 1
Services are deeds, processes and performances.
Services include: all economic activities whose output is not a physical product or construction, is
generally consumed at the time it is produced, and provides added value in forms(such as
convenience, amusement, timeliness, comfort, or health) that are essentially intangible concerns of
its first purchaser.
Lovelock’s Classification Of Services
People as Recipients Possessions as Recipients
Tangible Actions Services Directed at People’s Services Directed at People’s Tangible
Bodies Possessions
- Passenger - Courier services
transportation - Car repair
- Healthcare - Laundry and dry cleaning
- Spa treatments
Intangible Actions Services Directed at People’s Services Directed at Intangible
Minds Assets/Possessions
- Education - Accounting
- Entertainment - Banking
- Psychotherapy - Legal services
▪ Services Directed at People’s Bodies
Requires you to be physically present. Most of the time your go to them, so you are a key part in the
delivery of the service. You have to enact your role in the service experience: carry out the correct
actions and behaviour. The premises or transportation vehicles have to be inviting to attract
customers. Expansion requires premises, equipment and employees to be located in new markets.
▪ Services Directed at People’s Tangible Possessions
Doesn’t require you to be physically present, except sometimes at the beginning and/or the end.
Attractiveness of premises is less important. Overseas expansion most probably still requires
investments in employees, premises and equipment and/or transportation to the old location.
▪ Services Directed at People’s Minds
Customers may go to physical premises but broadcasting technologies can also deliver the service
from a distance. Unlike many other services, this can be produced and then stored to be consumed
later. This means the provider and customer don’t have to be active at the same time.
▪ Services Directed at Intangible Assets/Possessions
Very little interaction needed. Some product may not involve ongoing production. Its often difficult
to differentiate and communicate the true value.
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, The Tangibility Spectrum
Services tend to be more intangible, products tend to be more tangible. There are very few ‘pure
services’ or ‘pure goods’. This illustrates that spectrum:
Tangible Dominant
Intangible Dominant
Chemicals Shoes Cosmetics Fast-Food Airlines Insurance Business Education
Outlets Consulting
Service Dominant Logic
Steve Vargo & Bob Lusch: all products and physical goods are valued for the service they provide.
The value is the service provided by the good, not the good itself. Companies provide service
solutions for customers and should therefore offer the best combination of service and product to
create that solution. Value is not simply created and delivered, but it’s co-created between the
producer, customers and stakeholders.
‘Value in use’ → the customer creates some of the value
by how they use it (example: often cleaning your car for
the best image). Image on the right is the value-in-use
creation model inspired by Christian Grönroos’ theory
that service involves interaction between provider and
customer.
‘Value in context’ → varies in relation to time and place
dimensions such as laws and restrictions (example: fuel
costs and speed limits).
Different Kinds Of Services
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