Chapter 1: Basics Flashcards
What are the 3 sectors of the German Economy + examples?
1) Primary Sector (Agriculture, Fishing)
2) Secondary Sector (Mining, Electricity, Gas, Water)
3) Tertiary Sector (Hotels, Transport, Restaurants)
What is Fisher’s Demand Hypothesis?
The demand for services increases as the economy and income increases => wealthy people spend more on services than goods
Give me the elasticity for each sector
Primary: Inelastic
Secondary: Less rigid
Tertiary: Elastic
What is Albach’s “Theory of Industrial Services”?
The demand for services increases due to technological advancements, higher productivity & societal changes
What is the Cause and Effect relationship of Albach’s theory?
1) Production Orientation
2) Consumption Orientation
What are 5 practical reasons for historical increase in demand for services?
1) Technological Developments
2) Development of Consumer Behavior
3) Demographic Developments
4) Market Development
5) Social Developments
What are 4 current challenges for service companies + examples?
1) Changes in the market and competitive situation
2) Social and Demographic changes
3) Trends and Changes in consumer behavior
4) Progress in Information and Communication Technology
What criterias can be used to systematize services + examples?
Tangibility
Customer Involvement
Service Output
Degree of Customisation
Delivery Mechanism
What is the difference between Core Service & Secondary Service?
Core Service: main purpose for which customer seeks service
Secondary Service: Additional services to enhance experience
Give me 5 characteristics of services + explanation
1) Intangibility
2) Uno-Actu Principle
3) External Factor
4) Heterogeneity
5) Uniqueness
What is the Theoretical Model of Service Production?
Potential Orientation
Process Orientation
Result Orientation
What is Meffert/Bruhm services definition for Potential Orientation?
Services are independant, marketable services are connected with provision and use of performance
What is Meffert/Bruhm services definition for Process Orientation?
Internal and External Factors are combined in the creation process
What is Meffert/Bruhm services definition for Results Orientation?
The service provider’s intentional combination of resources, processes, and efforts to produce positive and beneficial outcomes for external entities, including individuals, objects, or systems.
What are the goals of Potential Orientation?
Ensuring availability of skilled personnel
Maintaining necessary infrastructure and technology
Building strong brand image to attract
What are the goals of Process Orientation?
Delivering efficient service experience
Ensuring consistent quality during delivery
Enhancing customer interaction & communication
What are the goals of Result Orientation?
Achieving high customer satisfaction
Gaining customer loyalty
Solving customers problems
What are the 3 components of Hilke’s Service Composite Box
1) Core Services
2) Facilitating Services
3) Supporting Services
What are 5 implications for Marketing from specifics of services + examples?
1) Materialization of the potential skills
2) Transport and accommodation of the external factor
3) Exclusion of unwanted customers
4) Materialization of Services (logos, branding)
5) Short-term demand management (promotions, discounts)
