Chapter 11 - Done

Question 1

What are services?

Answer 1

Activities, performances or benefits that provide value or are offered for sale, but which involve neither an exchange of tangible goods, nor a transfer of title

Question 2

What is service (the verb)?

Answer 2

The act of delivering a product (whether it is a good or services product)

Question 3

What is a service-dominant logic?

Answer 3

The essence of their argument is that all products should be seen as a means to an end: that of providing value to the user/consumer
The propositions that modern economies are dominated by the services sector have been further extended to their logical conclusions

Question 4

What are some service product classifications?

Answer 4

Consumer services

Business to business services

Question 5

What are consumer services?

Answer 5

Are those services purchased by individual consumers or households for their own private consumption (to provide, for example, functional, sensory or psychological benefits)

Question 6

How does the demand for services fluctuate?

Answer 6

During times of economic prosperity, servces are more in demand and during times of economic downturn, they are less in demand

Question 7

What are business-to-business services?

Answer 7

Those services purchased by individuals and organisations for use in the production of other products or for use in their daily business operations
Business‐to‐business services are also often known as ‘professional services’

Question 8

What differentiates services from goods?

Answer 8

Intangibility
Inseparability
Heterogeniety
Perishability

Question 9

What is intangibility?

Answer 9

Because a pure service is an activity and not an object, it cannot be easily perceived by the five physical senses

Question 10

How can an organisation make its offerings of services better despite intangibility?

Answer 10

Adding tangible components to their intangible service

Adding intangible service components to their tangible goods

Question 11

What are some strategies thant an organisation can use to reduce the uncertainty felt by customers?

Answer 11

• Marketers can use tangible cues, such as logos, staff uniforms, architecture and décor
• Reduce the level of risk perceived by customers through such techniques as service guarantees, testimonials and positive word‐of‐mouth

Question 12

What do service guarantees and testimonials do?

Answer 12

• A service guarantee offers the potential customer the knowledge that they can obtain some course of redress should the service not live up to expectations
• Testimonials provide potential customers with the confidence that other individuals or organisations have been happy with the service provided

Question 13

What is inseparability?

Answer 13

For most services, it is impossible to separate the production of the service and the consumption of the service
As per this concept, it is very difficult to separate the services from the individual who provides it (dentist and the service) and sometimes it can be difficult to distinguish the customer from the services as well (gym where the individual must participate to get benefit sought)

Question 14

What is heterogeniety?

Answer 14

• Variability in the service quality
• Services are provided by humans who, unlike machines, are subject to variations in mood, skill and willingness to provide service of an agreed quality
• For service marketers, the challenge is to provide a product with a reasonably consistent level of quality that matches customers’ expectations

Question 15

What are key strategies for service marketers to reduce heterogeniety?

Answer 15

To develop service delivery systems
To manage the expectations of customers
To invest heavily in staff training
To select customers carefully

Question 16

What does perishability refer to?

Answer 16

Refers to the inability to store services for use at a later date — they are ‘time bound’ (Doctors appointments)

Question 17

What are some of the methods to address perishability?

Answer 17

Manage demand over time
Stimulate demand
Restrict demand
Increase or decrease supply capacity

Question 18

What is the extended marketing mix for services?

Answer 18

People
Process
Physical Evidence

Question 19

What does people mean?

Answer 19

• Includes staff, customers, other customers
• Most successful services marketing organisations will readily claim that their ‘people’ are their most valuable asset and the key to their success
• To ensure high standards of service delivery, service organisations need to carefully consider the selection, training, outfitting, motivating and rewarding of their staff so that they deliver services effectively, efficiently and to the standard expected by customers and the organisation

Question 20

What is process?

Answer 20

Refers to all of the systems and procedures used to create, communicate, deliver and exchange a service offering
Ideally, the performance should exceed the customer’s expectation, although this becomes increasingly difficult over the long term of the relationship

Question 21

What is physical evidence?

Answer 21

• Service marketers should therefore pay close attention to the physical environment in which the service is delivered and to all the other accompanying physical cues
• The physical environment includes architectural design, floor layout, furniture, décor, signage, shop or office fittings, colours, background music and even smell

Question 22

What are some of the challenges of social marketing?

Answer 22

1. Achieving a sustainable differential advantage in marketing services
2. Managing profitable customer relationships
3. Delivering consistently high levels of customer service

Question 23

How can marketers manage differentiation in the services they provide?

Answer 23

In addition to the core and expected service, a range of supplementary services are often included, which add value from the customer’s perspective and which may serve to differentiate the service offering from that of competitors’ offerings

Question 24

What are professional services?

Answer 24

Accountants, lawyers, architects and investment advisers, typically manage their customers closely as individuals and provide each with a service tailored to their unique circumstances and needs

Question 25

What are consumer services?

Answer 25

Typically provide a standardised service offering, such as that provided by the retail banks and the airlines

Question 26

What are search qualities?

Answer 26

Include colour, size and smell (usually if this can be used, the thing is a good)

Question 27

What are experience qualities?

Answer 27

Include a theatre performance, a sporting event, hairstyling or restaurant service (usually is a service)

Question 28

What are credence qualities?

Answer 28

Based on an evaluation of the service provider’s trustworthiness, integrity and professionalism (usually are professional services like medical/legal service)

Question 29

What do organisations need to consider for high levels of customer service?

Answer 29

1. Understand customers’ expectations
2. Establish service quality standards
3. Manage customers’ service expectations
4. Measure employee service performance