Chap 12 Flashcards

1
Q

what are the 4 unique characteristics of services?

A
  • intangible
  • inseparable
  • heterogeneous
  • perishable
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2
Q

what is the difference between service and goods?

A

service are intangible

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3
Q

intangibility

A

the inability of service to be touched, seen, tasted, heard, or felt in the same manner that goods can be sensed

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4
Q

is it true that service exhibit fewer search qualities than goods? True or False

A

True

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5
Q

search quality

A

a characteristic that can be easily assessed before purchase

ex: color of a car

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6
Q

experience quality

A

a characteristic that can be assessed only after use

ex: quality of a meal in a resto

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7
Q

credence quality

A

a characteristic that consumers may have difficulty assessing even after purchase because they do not have the necessary knowledge or experience

ex: medical or consulting services

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8
Q

inseparability

A

a consumer must be present during the production of services like a haircut, they are actually involved in the production of the services they buy

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9
Q

heterogeneity

A

(variability of inputs and outputs), they tend to be less standardized and uniform than goods
ex: barbers in a barbershop

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10
Q

is it easy or hard to achieve consistency and quality control with services?

A

hard

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11
Q

perishability

A

the inability of services to be stored, warehoused, or inventoried
ex: empty hotel room - no revenue that day

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12
Q

service

A

is the result of applying human or mechanical efforts to people or objects

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13
Q

service involves what?

A

deed, a performance, or effort that can’t be physically possessed

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14
Q

is it hard to distinguish between manufacturing and service firms?

A

YES

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15
Q

because of the 4 unique characteristics of service what is happening with services quality?

A

it is more difficult to define and measure than is the quality of tangible goods

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16
Q

what is tank the most critical challenge business faces today?

A

improvement of service quality

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17
Q

reliability

A

the ability to perform the service dependably, accurately and consistently

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18
Q

what are the 5 components that customer evaluate service quality by?

A
  • reliability
  • responsiveness
  • assurance
  • empathy
  • tangible
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19
Q

assurance

A

the knowledge and courtesy of employees and their ability to convey trust
ex: skilled employees who treat a customer with respect

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20
Q

responsiveness

A

the ability to provide prompt service

ex: calling the customer back fast. serving lunch to someone fast who is in a hurry. 24/7

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21
Q

empathy

A

caring, individualized attention to customers

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22
Q

tangibles

A

the physical evidence of service, including the physical facilities, tools, and equipment used to provide the service

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23
Q

how many models can the “Gap Model” id?

A

5

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24
Q

Gap model

A

a model ID 5 gaps that can cause problems in services delivery and influence customers evaluations of service quality

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25
Q

GAP 1

A
  • what customers want and what management THINKS customers want
  • lead to a lack of understanding and miscommunication
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26
Q

GAP 2

A
  • what management thinks customers want and the quality specifications that management develops to provide the service
  • an inability for management to translate customer
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27
Q

gap 3

A
  • the service quality specifications and the service that is actually provided
  • due to the inability of management and employees to do what should be done
  • management need to make sure employees have the proper skills and tools to do their job
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28
Q

gap 4

A
  • what the company provides and what the customer is told it provides
  • clear communication gap
  • deceptive advertising promising more than what can be delivered (do whatever it takes)
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29
Q

gAP 5

A
  • service that customer receive and the service they want
  • positive/negative
  • ex: patient expect to wait 20 min in a doctors office but actually wait only 10 or 40 mins
30
Q

how to close GAP 1

A

a firm must stay tuned to customer wishes by researching customer needs and satisfaction

31
Q

how to close gap 2

A

N/A

32
Q

how to close gap 3

A
  • management needs to make sure employees have the skills and tools to perform their jobs
  • training employees to know what management expects and encouraging teamwork
33
Q

what gap is after gap 1 and gap 2 when it’s closed

A

gap 3

34
Q

which gap is the communication gap

A

gap 4

35
Q

how to close gap 4

A

companies need to create realistic customer expectation through honest, accurate communication about what the firms can provide

36
Q

how to close gap 5

A

N/A

37
Q

quality perception improves means gap___

A

shrink

38
Q

quality perception is low means gap___

A

large

39
Q

public service advertisement (PSA)

A

an announcement that promotes a program of a federal, state, or local government or of a nonprofit organization

  • used to help educate students about the dangers of misusing prescription drugs
40
Q

do sponsor of PSA pay time and space?

A

no, they donate by the medium

41
Q

nonprofit organization

A

is an organization that exists to achieve some goals other than the usual business goal of profit, market share, or ROI.

42
Q

nonprofit organization marketing

A

is the effort by a non-profit organization to bring about a mutually satisfying exchange with target markets

43
Q

activities nonprofit organization marketing perform

A
  • ID customers to want to attract
  • explicitly or implicitly specify objectives
  • develop, manage, and eliminate programs and services
  • decide on prices to charge (fee, donations, tuition, rates..)
  • schedule events or programs and location
  • communicate their availability (brochure, signs, advertisements)
44
Q

internal marketing

A

treating employees as customers and developing systems and benefits that satisfy their needs

45
Q

what is an important part of building a long-term relationship with customers?

A

quality of a firm’s employees

46
Q

how many levels to practice relationship marketing

A

4

47
Q

name the levels to practice relationship marketing

A
  1. financial
  2. social
  3. customization
  4. structural
48
Q

level 1: financial

A
  • pricing incentives to encourage a customer to continue doing business
    ex: frequent-flyer program
49
Q

level 2: Social

A
  • pricing incentives but seeks to build social bonds with customers
  • company stay in touch with customers (ex: BDAY card)
50
Q

level 3: customization

A
  • encourage customer loyalty

- develop one to one solution to fit customer needs

51
Q

level 4: structural

A
  • uses financial and social bonds but adds structural bonds to the formula
52
Q

what is level 3 (customization) referred to as?

A

customer intimacy

53
Q

how are structural bonds developed?

A

offering value-added services that are not readily available from other firms

54
Q

what makes marketing more challenging

A

service’s unique characteristics (intangibility, the inseparability of production and consumption, heterogeneity, and perishability)

55
Q

name the 4 promotion strategies

A
  • stressing tangible cues
  • using personal information sources
  • creating a strong organizational image
  • engaging in postpurchase communication
56
Q

stressing tangible cues

A

is a concrete symbol of the service offering.

ex: hotels put mints on the pillows

57
Q

using personal information sources

A

is someone consumer are familiar with (celebrity) or someone they admire or can relate to personally
- word-of-mouth communication

58
Q

creating a strong organizational image

A

is to manage the evidence, including the physical environment of the service facility, appearance of employees

ex: Mcdo golden arches directly recognizable

59
Q

engaging in postpurchase communication

A

follow-up activities that a service firm might engage in after a customer transaction
ex: telephone call, postcard survey, follow-up feedback

60
Q

what is a key factor influencing the selection of a service provider

A

convenience

61
Q

what is the most used form of direct distribution?

A

internet

62
Q

what is the product in the case of a service?

A

the product offering is intangible and consists in large part of a process, or services of processes

63
Q

what does product strategies services include?

A
  • a decision on the type of process involved
  • core and supplementary services
  • standardization or customization of the service product
  • service mix
64
Q

what are the 4 service process

A
  • people processing
  • possession processing
  • mental stimulus
  • information processing
65
Q

people processing

A

takes place when the service is directed at a customer

ex: health care

66
Q

possession processing

A

happens when the service is directed at customer’s physical possession
ex: dry cleaning

67
Q

mental stimulus

A

refers to services directed at people’s mind

ex: education

68
Q

information processing

A

describes services that use technology or brainpower directed at a customer assets
ex: insurance

69
Q

core service

A

most basic benefits the consumer is buying

ex: provide a bedroom for rent -> people processing

70
Q

supplementary service

A

a group of services that support or enhance the core service
ex: information processing, food service, parking, phone (from the bedroom for rent example)

71
Q

mass customization

A

a strategy that uses technology to deliver customized services on a mass basis
ex: give customer whatever he asks for - Starbucks