Creating Value in the Service Economy

Identify the powerful forces that are transforming service markets

• Changes in government policies

• Social changes

• Advances in information technology

• Internationalization and globalization

   

Define the services

What are the main categories of Services within non-ownership framework

• Rented goods services

• Defined space and place rentals

• Labor and expertise rentals

• Access to shared physical environments

• Access and use of systems and networks

Provide example for Labor and expertise rentals

• Boats, fancy dress costumes, construction and excavation equipment

• Theme parks, golf clubs, toll roads

• Car repair, medical check-up, management consulting

• A seat in an aircraft, suite in a office building, storage container in a warehouse

A seat in an aircraft, suite in a office building, storage container in a warehouse are example for:

• Rented goods services

• Defined space and place rentals

• Access and use of systems and networks

• Labor, skills and expertise rentals

What are the main categories of Services based on Process Perspective?

• People Processing Services

• Possession Processing Services

• Mental Stimulus Processing

• Information Processing

Outline 4 main distinctive characteristics of Services:

What are the main differences between goods and services:

• Most service products cannot be inventoried.

  Intangible elements usually dominate value creation.

• Services are often difficult to visualize and understand.

  Customers may be involved in co-production.

• People may be part of the service experience.

  Operational inputs and outputs tend to vary more widely.

• The time factor often assumes great importance.

  Distribution may take place through nonphysical channels.

What are the additional 3 P's of Services Marketing