chapter 10

Question 1

service

Answer 1

any act or performance one party can offer to another that is essentially intangible and does not result in the ownership of anything.

Question 2

categories of offerings

Answer 2

1. pure tangible good, eg. soap.
2. tangible good with accompanying services, eg. computer with warranty or specialised customer service.
3. hybrid offering, eg. restaurant meal.
4. major service with accompanying minor goods and services, eg. air travel.
5. pure service, eg. babysitting, massage.

Question 3

search qualities

Answer 3

characteristics that buyers can evaluate before purchase.

Question 4

experience qualities

Answer 4

characteristics that buyers can evaluate after purchase.

Question 5

credence qualities

Answer 5

characteristics that buyers normally find hard to evaluate even after consumption. eg. services are high in experience and credence qualities.

Question 6

distinctive service characteristics

Answer 6

they affect the design of marketing programs.
1. intangibility
2. inseparability
3. variability
4. perishability

Question 7

dimensions of brand experience

Answer 7

1. sensory
2. affective
3. behavioural
4. intellectual

Question 8

supply and demand strategies on the demand side

Answer 8

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

Question 9

supply and demand strategies on the supply side

Answer 9

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

Question 10

customer empowerment

Answer 10

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.

Question 11

customer coproduction

Answer 11

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.

Question 12

satisfying employees

Answer 12

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.

Question 13

external marketing

Answer 13

describes the normal work of preparing, pricing, distributing, and promoting the service to customers.

Question 14

internal marketing

Answer 14

describes training and motivating employees to serve customers well.

Question 15

interactive marketing

Answer 15

describes the employees’ skills in serving the client. clients judge services based on technical and functional quality.

Question 16

service companies that achieve marketing excellence

Answer 16

1. strategic concept
2. top-management commitment
3. high standards
4. profit tiers
5. monitoring systems (VOC measures)
6. satisfying customer complaints

Question 17

primary service package

Answer 17

what the customer expects.

Question 18

secondary service features

Answer 18

additional features like merchandise and loyalty programs.

Question 19

service-quality model

Answer 19

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

Question 20

determinants of service quality

Answer 20

these are based on the service-quality model. in descending order of importance:
1. reliability
2. responsiveness
3. assurance
4. empathy
5. tangibles

Question 21

reliability

Answer 21

the ability to perform the promised service dependably and accurately.

Question 22

responsiveness

Answer 22

the willingness to help customers and provide prompt service.

Question 23

assurance

Answer 23

the knowledge and courtesy of employees and their ability to convey trust and confidence.

Question 24

empathy

Answer 24

the provision of caring, individualised attention to customers.

Question 25

tangibles

Answer 25

the appearance of physical facilities, equipment, staff, and communication materials.

Question 26

zone of tolerance

Answer 26

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.

Question 27

customers’ worries about product service

Answer 27

1. reliability and failure frequency
2. downtime: the longer the downtime, the higher the cost. customers expect service dependability.
3. out-of-pocket costs

Question 28

service dependability

Answer 28

the ability to fix the product quickly or at least provide a loaner.

Question 29

life-cycle cost

Answer 29

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.

Question 30

facilitating services

Answer 30

offered for more expensive equipment. installation, staff training, maintenance and repair services, etc.

Question 31

value-augmenting services

Answer 31

services that extend beyond the product’s functioning and performance.

Question 32

service contracts/extended warranties

Answer 32

agreeing to provide maintenance and repair services for a specified period at a specified contract price.