chapter 10 Flashcards
service
any act or performance one party can offer to another that is essentially intangible and does not result in the ownership of anything.
categories of offerings
- pure tangible good, eg. soap.
- tangible good with accompanying services, eg. computer with warranty or specialised customer service.
- hybrid offering, eg. restaurant meal.
- major service with accompanying minor goods and services, eg. air travel.
- pure service, eg. babysitting, massage.
search qualities
characteristics that buyers can evaluate before purchase.
experience qualities
characteristics that buyers can evaluate after purchase.
credence qualities
characteristics that buyers normally find hard to evaluate even after consumption. eg. services are high in experience and credence qualities.
distinctive service characteristics
they affect the design of marketing programs.
1. intangibility
2. inseparability
3. variability
4. perishability
dimensions of brand experience
- sensory
- affective
- behavioural
- intellectual
supply and demand strategies on the demand side
produce a better match between supply and demand.
1. differential pricing
2. nonpeak demand, eg. Mcdonald’s promotes breakfast.
3. complementary services as alternatives, eg. ATMs.
4. reservation systems
supply and demand strategies on the supply side
produce a better match between supply and demand.
1. part-time employees
2. having employees perform only essential tasks during peak period
3. increased consumer participation, eg. bagging your own groceries.
4. sharing services
5. facilities for future expansion
customer empowerment
customers are becoming more sophisticated with buying product-support services and demand unbundled services with the right to select the elements they want. also, because of the internet customers can easily share their experiences.
customer coproduction
customers’ words and actions affect the quality of their service experiences and those of others as well as the productivity of frontline employees. customers play an active role in the delivery of services.
satisfying employees
having a strong customer orientation can increase job satisfaction and commitment. employees thrive in customer-contact positions if they have the internal drive to:
1. pamper customers
2. accurately read their needs
3. develop a personal relationship with them
4. deliver high-quality service to solve customers’ problems
positive employee attitudes will strengthen customer loyalty.
external marketing
describes the normal work of preparing, pricing, distributing, and promoting the service to customers.
internal marketing
describes training and motivating employees to serve customers well.
interactive marketing
describes the employees’ skills in serving the client. clients judge services based on technical and functional quality.
service companies that achieve marketing excellence
- strategic concept
- top-management commitment
- high standards
- profit tiers
- monitoring systems (VOC measures)
- satisfying customer complaints
primary service package
what the customer expects.
secondary service features
additional features like merchandise and loyalty programs.
service-quality model
highlights five gaps that prevent successful delivery:
1. gap between consumer expectation and management perception
2. between management perception and service-quality specifications
3. between service-quality specifications and service delivery
4. between service delivery and external communications
5. between perceived quality and expected service
determinants of service quality
these are based on the service-quality model. in descending order of importance:
1. reliability
2. responsiveness
3. assurance
4. empathy
5. tangibles
reliability
the ability to perform the promised service dependably and accurately.
responsiveness
the willingness to help customers and provide prompt service.
assurance
the knowledge and courtesy of employees and their ability to convey trust and confidence.
empathy
the provision of caring, individualised attention to customers.
tangibles
the appearance of physical facilities, equipment, staff, and communication materials.
zone of tolerance
a range in which a service dimension would be deemed satisfactory, anchored by the minimum level consumers are willing to accept and the level they believe can and should be delivered.
customers’ worries about product service
- reliability and failure frequency
- downtime: the longer the downtime, the higher the cost. customers expect service dependability.
- out-of-pocket costs
service dependability
the ability to fix the product quickly or at least provide a loaner.
life-cycle cost
the product’s purchase cost plus the discounted cost of maintenance and repair less the discounted salvage value. the estimation of the life-cycle cost takes into account the factors about product service.
facilitating services
offered for more expensive equipment. installation, staff training, maintenance and repair services, etc.
value-augmenting services
services that extend beyond the product’s functioning and performance.
service contracts/extended warranties
agreeing to provide maintenance and repair services for a specified period at a specified contract price.
