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SERVICE OUTPUTS AND SEGMENTATION z Service outputs z Trends z Segmentation BSAD 114 SERVICE SERVICE OUTPUTS AND SEGMENTATION z Service outputs z Trends z Segmentation BSAD 114 SERVICE OUTPUTS AND SEGMENTTION Lars Perner, Instructor 1

SERVICE OUTPUTS: DISTRIBUTION FROM THE CUSTOMER’S POINT OF VIEW z Bulk breaking z Spatial SERVICE OUTPUTS: DISTRIBUTION FROM THE CUSTOMER’S POINT OF VIEW z Bulk breaking z Spatial convenience z Waiting and delivery time z Breadth of assortment BSAD 114 SERVICE OUTPUTS AND SEGMENTTION Lars Perner, Instructor 2

Trends in Consumer Preferences z Poverty of time (in U. S. ) z Increased Trends in Consumer Preferences z Poverty of time (in U. S. ) z Increased knowledge y. Travel y. Information sources z Polarity of incomes y. Some increase in top incomes in U. S. y. Incomes slowly equalizing Worldwide BSAD 114 SERVICE OUTPUTS AND SEGMENTTION Lars Perner, Instructor 3

Segmentation z Aggregating consumers into larger groups that respond similarly to marketing treatments z Segmentation z Aggregating consumers into larger groups that respond similarly to marketing treatments z Cannot be “all things to all people” z Imperfect but practical means to target customers z Same consumer may be in different segments at different times BSAD 114 z Requirements for effective segments: y Maximally similar within y Maximally different between groups y Differ on significant dimensions--e. g. , price response, service requirements, frequency of shopping z Tradeoff between size and precision SERVICE OUTPUTS AND SEGMENTTION Lars Perner, Instructor 4

Example: Food Customers z Resellers--restaurants buy from suppliers z Institutional--hospitals buy to feed patients Example: Food Customers z Resellers--restaurants buy from suppliers z Institutional--hospitals buy to feed patients z Families y“Nuclear”--may buy from regular food stores; will favor large sizes BSAD 114 y. Small families, singles, and yuppies--will shop more in convenience store; single serving sizes more popular y. Value conscious--buy at warehouses y. Time conscious--will pay extra for delivery y. Service conscious-other services demanded SERVICE OUTPUTS AND SEGMENTTION Lars Perner, Instructor 5