Chapter 10: Services and Non-Profit Organizations Marketing Flashcards
How do Service Differ from Goods
- Intangible
- inseparable
- heterogeneous
- perishable
- intangible qualities
- search quality
- experience quality
- credence quality
How do Service Differ from Goods: Intangible
cannot be touched, seen, tasted, heard, or felt in the same manner as goods
How do Service Differ from Goods: Inseparable
sold , products, and consumed at same time. Allows customer input in service.
How do Service Differ from Goods: Heterogeneous
tend to be less standardized and uniform than goods. Skills differ from person to person.
How do Service Differ from Goods:Perishable
cannot be stored, warehoused, or inventoried.
How do Service Differ from Goods: search quality
a characteristic that can be easily assesed before purchase (colour of the car)
How do Service Differ from Goods: experience
a characteristic that they assessed only after use, such as the quality of meal in a restaurant.
How do Service Differ from Goods: credence quality
-a characteristic that consumer may have difficult assessing even have purchase because they do not have the necessary knowledge or training. (medical services)
Components of Service Quality
- Reliability
- Responsiveness
- Assurance
- Empathy
- Tangibles
Components of Service Quality: Reliability
The ability to perform dependably, accurately, and consistently
Components of Service Quality: Responsiveness
the ability to provide prompt service
Components of Service Quality: Assurance
the knowledge and courtesy of employees
Components of Service Quality: Empathy
caring, individualized attention to customers
Components of Service Quality: Tangibles
the physical evidence of a service
Product Strategies for Services
- Process
- Core and Supplementary
- Standardization or customization
- Service mix
people processing
takes place when the service is directed at a customer (hair-styling, transportation )
people processing
occurs when the service is directed at customers’ physical possessions (lawn care, car repair)
mental stimulus processing
refers to services directed at people’s minds (entertainment, spectator sports )
information processing
describes services that use technology or brainpower directed at a customer’s assets
Product Strategies for Services: Core and Supplementary
• Core service
○ The most basic benefit the customer is buying
• Supplementary service
• A group of services that support or enhance the core services
Core services are the draw, supplementary is how service gain a competitive edge.
Standardization or customization
-Services are customized and response to customer needs. Standardized services are more efficient and cost less.
To incorporate both we use mass customization:
○ Mass customization –> a strategy that uses technology to deliver customized services on a mass basis
Service Mix :
place (distribution) Strategy
- promotion strategy
- Pricing Strategy
Service Mix : Place (Distribution) Strategy
- Convenience
- Number of outlets - to meet market demand (don’t want to do more than necessary.
- Direct or indirect distribution - through your own firm or through other firms.
- Location
- Scheduling
Service Mix : Promotion Strategy
- Stress tangible cues- example is hotel using towels, pillow mints etc.
- Use personal information sources- using something a customer is familiar with (celebrity), or something they can relate to personally
- Create a strong organizational image- manage the physical environment of the service facility, the appearance of the service employees, and the tangible items associated with a service.
- Engage in post-purchase communication
