Ch. 11 M.K Flashcards
Characteristics of Services
- Intangibility
- Inseparability of Production and Consumption
- Perishability
- Heterogeneity
Intangibility
Services are actions that have no permanent physical qualities as opposed to goods which can be touched and possessed over time.
Inseparability of Production and Consumption
The production of a service cannot be separated from its consumption by the customer.
• Services are produced, sold, and consumed all at the same time.
Perishability
Services cannot be produced ahead of time and stored until needed.
Heterogeneity
Variation in the quality of services delivered by individuals and organizations
7 Ps of Service
o Product o Price o Place o Promotion o Process o People o Physical Evidence
Service Quality
- Customers’ perception of how well a service meets or exceeds their expectations
- Service quality is judged from the customer’s viewpoint.
5 Dimensions of Service Quality
- Reliability
- Responsiveness
- Assurance
- Empathy
- Tangibles
Delivering Exceptional Service Quality
- Analysis of Customer Expectations
- Service Quality Specifications
- Employee Performance
- Management of Service Expectations
Analysis of Customer Expectations
Levels of customer service expectations
• Desired: if met, customer is very satisfied
• Acceptable: if met, customer is not dissatisfied
Conduct marketing research
• Focus groups
• Comment cards
• Asking employees
Service Quality Specifications
o Establish goals for service delivery
o Secure management’s commitment to service quality
Management of Service Expectations
o Conduct advertising campaigns that make realistic promises of service
o Establish good internal communications to inform employees and ensure promises are kept
Employee Performance
o Train customer-contact employees at all levels
o Incorporate service quality into employee evaluation and compensation systems
The Tangibility Continuum
Good Dominant Products(tangibles) sugar house automobile custom made clothing restaurant dining experience
Service Dominant Products(intangibles) restaurant dining experience air travel healthcare an agency service education
