Chapter 10 - Services

Question 1

How is marketing of services different from marketing of products?

Answer 1

Because of 4 differences. Services are:

1. Intangible
2. Inseparable
3. Heterogeneous
4. Perishable

Question 2

Intangible

Answer 2

Means marketers must use images to reinforce the benefit/value that a service provides and must be ethically communicated

Question 3

Inseparable

Answer 3

Means inseparable from consumption as customers can rarely try before they buy and when the service is complete, it can not be returned

Question 4

Heterogeneous

Answer 4

Means the more humans providing the service, the more variability the service quality. Micro-marketing can be used here to customise services to meet exact needs.

Question 5

Perishable

Answer 5

Means services can not be stored for future use. Therefore marketers must match demand and supply which is rare to succeed, hence they must stimulate demand.

Question 6

Explain the Service Gap Model

Answer 6

It is designed to encourage systematic examination of all aspects of the service delivery process. It has 4 steps.

Question 7

What are the 4 steps of the Service Gap Model

Answer 7

1. Knowledge gap
2. Standards gap
3. Delivery gap
4. Communication gap

Question 8

Knowledge gap and how to close the gap

Answer 8

is the difference between customer expectations and firms perception of customer expectations
- close gap by using marketing metrics such as service quality and zone of tolerance

Question 9

Standards gap and how to close the gap

Answer 9

is the difference between firms perception of customer expectations and the service standards set
- close gap by setting appropriate service standards, training employees to meet and exceed standards and measuring service performance

Question 10

Delivery gap and how to close the gap

Answer 10

is the difference between the service standards set and the actual service
- close gap by empowering employees, providing support and incentives, and using technology where appropriate.

Question 11

Communication gap how to close the gap

Answer 11

is the difference between the actual service and the service the firms promotion program promises
- close gap by being realistic about the service being provided and manage customer expectations.

Question 12

What are the 5 service quality dimensions

Answer 12

1. reliability
2. responsiveness
3. assurance
4. empathy
5. tangibles

Question 13

Explain the zone of tolerance

Answer 13

it is the difference between a customers wants and needs and what they will accept before they go elsewhere. They are defined by a series of questions about each service dimension.

Question 14

What are the series of questions regarding the zone of tolerance

Answer 14

1. the desired and expected level of each dimension, from low to high
2. customer perception of focal service and competitive service, from low to high
3. the importance of each service dimension

Question 15

What are the service recovery methods

Answer 15

1. listening to the customers and involving them in recovery
2. provide a fair solution
3. resolve the problem quickly