Marketing Management, Millenium Edition - epiheirimatikotita.gr

204 CHAPTER 11 DESIGNING AND MANAGING SERVICESFigure 4-5Three Types of Marketing in Service Industriesconfidence?), 14 service providers must deliver services that are “high touch” as well as“high tech.” 15Consider how Charles Schwab, the nation’s largest discount brokerage house,uses the Web to create an innovative combination of high-tech and high-touch services.One of the first major brokerage firms to provide on-line trading, Schwab nowprovides millions of investors with Web-based financial and company information,account data, and detailed research. By offering high-tech services, Schwab has takenon the role of on-line investment adviser. Nonetheless, the on-line trading service doesnot entirely replace the personal service offered by Schwab in its local branches or viathe telephone. 16In some cases, customers cannot judge the technical quality of a service evenafter they have received it, as shown in Figure 4-6. 17 At the left are goods that are highin search qualities—characteristics the buyer can evaluate before purchase. In the middleare goods and services that are high in experience qualities—characteristics the buyercan evaluate after purchase. At the right are services that are high in credence qualities—characteristics the buyer normally finds hard to evaluate even after consumption. 18Because services are generally high in experience and credence qualities, thereis more risk in their purchase. As a result, service buyers tend to rely more on word ofmouth than on advertising when selecting a provider. Second, they rely heavily onprice, personnel, and physical cues to judge quality. Third, they are highly loyal to serviceproviders who satisfy them.Given these issues, service firms face three key marketing tasks: increasing competitivedifferentiation, service quality, and productivity. Although these interact, we willexamine each separately.Managing DifferentiationService marketers frequently complain about the difficulty of differentiating their serviceson more than price alone. Price is a major marketing focus in service industriessuch as communications, transportation, and energy, which have experienced intense