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Principles of Marketing > 10. Services & Experiences > Flashcards

10. Services & Experiences Flashcards

1
Q

What is the reasons for growing interest in services marketing?

A
  • Growth in service industry
  • Deregulation of many service industries (banking, airlines, telecommunications)
  • Increased competition in service industry
  • Changing demographic and socio-economic profile of Australian society
  • Increased use of a co-creation business model
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2
Q

What are the problems faced by service marketers?

A
  • Intangibility
  • Inseparability
  • Variability
  • Perishability
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3
Q

What is the definition of intangibility?

A
  • It means that it is not something we can sense or feel
  • Services are evaluated subjectively prior to purchase

Example:
A cinema experience may include evaluation of:
- Treatment by service employees
- Behaviour of other customers
- Condition of the servicescape (the ambience and environment in the area)

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4
Q

How to augment products with services?

A

Ordering ease, Delivery, Installation of product, Returns

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5
Q

What is the difference between goods and services?

A
  • Goods are produced → sold → consumed
  • Services are sold → produced + consumed
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6
Q

How to increase variability?

A

Increase degree of human interaction and intangibility

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7
Q

What is the definition of perishability?

A
  • It will not exist after some time
  • Services can’t be saved
  • There is fluctuations in demand but not in supply
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8
Q

What is the definition of physical evidence(environment)?

A

Environment is where the service is assembled using tangible elements, and where the firm and customer interact.

E.g cinema, cafe

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9
Q

What is the definition of people/participants?

A

People includes all humans partaking in the service delivery to the customer
- Traditional mindset
- workers follow rules
- Market-focused mindset
- Upside down pyramid where workers are supported

e.g waiter

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10
Q

What is the definition of process?

A

Process is the actual procedure and stages of the service being delivered

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11
Q

What is the definition of process?

A

Process is the actual procedure and stages of the service being delivered

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12
Q

What is the definition of customer experience?

A

Customer experience is what consumers think, feel, sense and do when deciding to purchase a product

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13
Q

What is the difference between CX and consumer decision?

A

Consumer decision-making using rational and tells how consumers purchase decisions

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14
Q

What is the significance of CX?

A
  • Expectations
  • Interactions
  • Resources
  • Responses
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15
Q

What are the types of touch points?

A

Brand-owned: Loyalty programs, store atmospherics,
advertising, etc.
- Qantas, Flybuys

Partner-owned: Shipping services, maintenance and repair, cleaning
- Fedex, Auspost

Customer-owned: Body and mind, other resources

External: Weather, other customers
- e.g cinema noise, restaurant noise
- After the economy, the weather is the factor that impacts consumer behaviour the most

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16
Q

What is the definition of pain points?

A
  • Pain points are persistent problems with a problem that inconvenience customers and their businesses
  • Pain points are unmet needs waiting to be satisfied
17
Q

What types of pain points are there?

A
  • Support pain points
    • App is too confusing to set up
  • Financial Pain Points
    • I don’t think it’s worth the price
  • Productivity Pain Points
    • It’s just too difficult to use
  • Process Pain Points
    • I need something to help
18
Q

What is the definition of customer journey?

A

A customer journey maps the purchase journey from the customer’s point of view in order to understand the efficiency of the company process.

19
Q

How do you integrate digital, physical and social realms to
create superior CX?

A
  • Increase the social presence in
    digital experiences
  • Blend the digital, physical, and social dimensions of experiences
  • Start from desired qualities for the experience
  • Determine touchpoint constellation
  • Experiment, communicate, adjust, iterate
19
Q

How do you integrate digital, physical and social realms to
create superior CX?

A
  • Increase the social presence in
    digital experiences
  • Blend the digital, physical, and social dimensions of experiences
  • Start from desired qualities for the experience
  • Determine touchpoint constellation
  • Experiment, communicate, adjust, iterate
20
Q

What is the definition of service failure?

A

When the product or service doesn’t meet up to what it was required to do.

21
Q

What parts of the product causes product failure?

A
  • Conformance
  • Durability
  • Aesthetics
  • Reliability
22
Q

What parts of the product causes service failure?

A
  • Reliability (technical)
  • Responsiveness (technical)
  • Assurance (functional quality)
  • Empathy (functional)
  • Tangibles (functional)
23
Q

What is the downside of service failure?

A
  • Businesses don’t hear from 96% of unhappy customers so they can’t even fix the problem
  • News of bad reviews are twice as impactful as the good
24
Q

What types of qualities are there?

A

Technical
- outcome (what is delivered)

Functional
- outcome (how it is delivered)

25
Q

What is the definition of service recovery?

A

Involves the responsive action to recover dissatisfied customers and convert them to satisfied customers in order to maintain customer relationship

26
Q

What are the upsides of service recovery?

A
  • 70% of complaining customers will be retained if the complaint is resolved
  • 95% will be retained if it is resolved quickly
27
Q

What are the implications to service marketing?

A

Doing the job right the first time + effective complaint handling = increased customer satisfaction & loyalty

Solving an issue increases satisfaction and loyalty which leads to posit word of mouth about the fix

28
Q

How does a customer feels after a service recovery?

A

Distributive fairness
- Was I compensated fairly?

Procedural fairness
- Was it easy to complain?

Interactional fairness
- Did they treat the customers nicely

29
Q

What the service recovery paradox?

A

Customers experiencing failures then having their issues fix pulls them to the loyalty toward the company’s service industry

30
Q

How to detect service failure?

A

Develop service employees to:
- gather customer information
- measure their own performance
- identify unhappy customers
- find the root causes of value delivery problems
- Improve service delivery processes

31
Q

What is the process to correct service failure?

A
  • Identify service failures
  • Resolve customer problems
  • Communicating & classifying service failures
  • Integrating data & improving overall service

Principles of Marketing (12 decks)

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