Services: How Are They Viewed Throughout the World Lawrence F. Cunningham Clifford E. Young Hong Kong March 2006
Central Question: How do people perceive services around the world Why are we interested? Management (normative) classification Customer-based classification Cross-cultural comparison Service positioning Marketing strategy
Goods versus Services: A comparison Goods Tangible Standardized Product Separation from Consumption Nonperishable Services Intangible Heterogeneous Simultaneous production and consumption Perishable
Methodology Multi-dimensional Scaling Constructs multi-dimensional map of goods/services and/or classifications MDS can be used on a variety of data, using different models and allowing different assumptions about the level of measurement.
Perception of 6 Grad Business Schools
Theme Parks Mapped on Classifications
Research Samples Mid-career business school students High sample equivalency Gender Marital status Education Age Income Similar to real-world consumers
Services Classifications Physicality of product Customer-employee contact level Production-consumption separability Riskiness Ease of Switching Service performed on person or object Formal or non-formal relationship Continuous or discreet transaction Level of customization Level of judgement by provider Convenience level
Services Commercial airlines Hospitals University education Dry cleaning Banking Spectator Sports Fast-food restaurants Movie theaters Plumbing Legal services Public transit Fine restaurants Appliance repair
Results, USA Services were evaluated on each of the classifications Mean evaluations were calculated for each service on each classification and subjected to MDS 82% of the variance of means was accounted for by the first two factors or dimensions
1.2 Inseparable/Separable Person/Object 0.8 Physical Low/High 0.4 Riskiness Low/High Judgement Low/High Customization Low/High 0 Contact Low/High Convenience Low/High Switching Difficult/Easy Service Continuous/Discrete Relationship Formal/None -0.4-0.8-1.2-1.3-1.1-0.8-0.6-0.3-0.1 0.2 0.5 0.7 1.0 1.2
USA Services Mapped on Classifications 1.2 Object Inseparable/Separable Person/Object 0.8 Physical Low/High Customization 0.4 Riskiness Low/High Judgement Low/High Customization Low/High 0 Contact Low/High -0.4 Appliance Repair Plumbing Dry Cleaning Legal Banking Hospital Airline University Fine Restaurant Fast Food Public Sports Transit Movie Convenience Low/High Switching Difficult/Easy Service Continuous/Discrete Relationship Formal/None Standardizatio -0.8-1.2 Person -1.3-1.1-0.8-0.6-0.3-0.1 0.2 0.5 0.7 1.0 1.2
French Services Mapped on Classifications 1.2 0.8 Inseparable/Separable Convenience Low/High Persona/Object Switching Difficult/Easy 0.4 Riskiness Low/High Appliance Dry Repair Cleaning Plumbing Banking Physical Low/High Judgement Low/High Customization Low/High Legal USA 0-0.4 Contact Low/High Airline Fast Food University Movie Hospital Fine Restaurant Sports Public Transit Service Continuous/Discrete Relationship Formal/None Korea -0.8-1.2-1.3-1.1-0.8-0.6-0.3-0.1 0.2 0.5 0.7 1.0 1.2
1.2 Inseparable/Separable 0.8 Person/Object USA 0.4 Contact Low/High Customization Judgement Low/High Low/High 0 Riskiness Low/High Legal Dry Cleaning Appliance Repair BankingPlumbing Fine Restaurant Hospital Airline Fast Food University Public Transit Movie Convenience Low/High Physical Low/High Switching Difficult/Easy Service Continuous/Discrete Relationship Formal/None -0.4 Sports France -0.8-1.2-1.3-1.1-0.8-0.6-0.3-0.1 0.2 0.5 0.7 1.0 1.2 Korean Services Mapped on Classifications
Conclusions Summary Simplicity two dimensions Consistency across cultures Managerial Significance Important ingredient in marketing opportunity analysis Opportunity to reposition or determine initial positioning
A Typology of Services High Customization Moderate Customization Standardization Service performed on object Appliance Repair Plumbing Dry Cleaning Service performed on object and person Legal Banking Service performed to/for a person Hospital University Airline Fine Restaurant Fast Food Public Transportation Movies Sports Events
Self-Services Technologies (SSTs) Same classifications Selection of SST services US sample only
Self-Service Technologies (SSTs) Online banking Distance education Airline reservations Tax software Retail self-scanning Online auctions Pay at the pump ATM's Online brokerage Interactive phone Internet search Online car buying
1.2 Separable 0.8 Inseparable/Separable Convenience Low/High Service Continuous/Discrete Physical Low/High 0.4 Riskiness Low/High Airline reservations Online car buying Online auctions Relationship Formal/None Switching Difficult/Easy Customization Contact Low/High Customization Low/High 0 Distance education Online banking Pay at the pump Internet search Tax software Self-scanning ATM's Person/Object Standardizatio -0.4 Online brokerage Interactive phone USA -0.8-1.2 Inseparable -1.3-1.1-0.8-0.6-0.3-0.1 0.2 0.5 0.7 1.0 1.2
A Typology of SSTs Customized Standardized Separable from product/service Moderately separable Inseparable from product/service Airline Reservations Online Car Buying Online Auctions Distance Education Online Banking Online Brokerage Pay at the pump Retail self-scanning Internet search Tax software ATMs Interactive phone
Future Research Needs Learning relationship with companies Provide information about how their services are positioned. Provide companies with information on opportunities for positioning and repositioning services and new self-service technologies Provide a framework for service perceptions in all cross-cultural environments, international and domestic.
Questions?