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
GAP 1
- what customers want and what management THINKS customers want - lead to a lack of understanding and miscommunication
26
GAP 2
- what management thinks customers want and the quality specifications that management develops to provide the service - an inability for management to translate customer
27
gap 3
- 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
28
gap 4
- 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)
29
gAP 5
- 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
how to close GAP 1
a firm must stay tuned to customer wishes by researching customer needs and satisfaction
31
how to close gap 2
N/A
32
how to close gap 3
- 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
what gap is after gap 1 and gap 2 when it's closed
gap 3
34
which gap is the communication gap
gap 4
35
how to close gap 4
companies need to create realistic customer expectation through honest, accurate communication about what the firms can provide
36
how to close gap 5
N/A
37
quality perception improves means gap___
shrink
38
quality perception is low means gap___
large
39
public service advertisement (PSA)
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
do sponsor of PSA pay time and space?
no, they donate by the medium
41
nonprofit organization
is an organization that exists to achieve some goals other than the usual business goal of profit, market share, or ROI.
42
nonprofit organization marketing
is the effort by a non-profit organization to bring about a mutually satisfying exchange with target markets
43
activities nonprofit organization marketing perform
- 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
internal marketing
treating employees as customers and developing systems and benefits that satisfy their needs
45
what is an important part of building a long-term relationship with customers?
quality of a firm's employees
46
how many levels to practice relationship marketing
4
47
name the levels to practice relationship marketing
1. financial 2. social 3. customization 4. structural
48
level 1: financial
- pricing incentives to encourage a customer to continue doing business ex: frequent-flyer program
49
level 2: Social
- pricing incentives but seeks to build social bonds with customers - company stay in touch with customers (ex: BDAY card)
50
level 3: customization
- encourage customer loyalty | - develop one to one solution to fit customer needs
51
level 4: structural
- uses financial and social bonds but adds structural bonds to the formula
52
what is level 3 (customization) referred to as?
customer intimacy
53
how are structural bonds developed?
offering value-added services that are not readily available from other firms
54
what makes marketing more challenging
service's unique characteristics (intangibility, the inseparability of production and consumption, heterogeneity, and perishability)
55
name the 4 promotion strategies
- stressing tangible cues - using personal information sources - creating a strong organizational image - engaging in postpurchase communication
56
stressing tangible cues
is a concrete symbol of the service offering. | ex: hotels put mints on the pillows
57
using personal information sources
is someone consumer are familiar with (celebrity) or someone they admire or can relate to personally - word-of-mouth communication
58
creating a strong organizational image
is to manage the evidence, including the physical environment of the service facility, appearance of employees ex: Mcdo golden arches directly recognizable
59
engaging in postpurchase communication
follow-up activities that a service firm might engage in after a customer transaction ex: telephone call, postcard survey, follow-up feedback
60
what is a key factor influencing the selection of a service provider
convenience
61
what is the most used form of direct distribution?
internet
62
what is the product in the case of a service?
the product offering is intangible and consists in large part of a process, or services of processes
63
what does product strategies services include?
- a decision on the type of process involved - core and supplementary services - standardization or customization of the service product - service mix
64
what are the 4 service process
- people processing - possession processing - mental stimulus - information processing
65
people processing
takes place when the service is directed at a customer | ex: health care
66
possession processing
happens when the service is directed at customer's physical possession ex: dry cleaning
67
mental stimulus
refers to services directed at people's mind | ex: education
68
information processing
describes services that use technology or brainpower directed at a customer assets ex: insurance
69
core service
most basic benefits the consumer is buying | ex: provide a bedroom for rent -> people processing
70
supplementary service
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
mass customization
a strategy that uses technology to deliver customized services on a mass basis ex: give customer whatever he asks for - Starbucks