Chapter 12: Service and Nonprofit Organization Marketing Flashcards
Service
The result of applying human or mechanical efforts to people or objects.
Intangibility
The inability of service to be touched seen, tasted, heard, or felt in the same manner that goods can be sensed.
Search quality
A characteristic that can be easily assessed before purchase. Services lack this.
Experience quality
A characteristic that can be assessed only after use. This is what services have.
Credence quality
A characteristic that consumers may have difficulty assessing even after purchase because they do not have the necessary knowledge or experience.
Inseparability
The inability of the production and consumption of a service to be separated; consumers must be present during the production.
Inconsistency
The inability of service quality to be consistent each time it is delivered because the service depends on the people who provide it.
Inventory
The inability of services to be stored for future use.
Reliability
The ability to perform a service dependably, accurately, and consistently.
Responsiveness
The ability to provide prompt service.
Assurance
The knowledge and courtesy of employees and their ability to convey trust.
Empathy
Caring, individualized attention paid to customers.
Tangibles
The physical evidence of a service, including the physical facilities, tools, and equipment used to provide the service.
Gap model:
A model identifying five gaps that can cause problems in service delivery and influence customer evaluations of service quality.
Gap 1: Knowledge gap
The gap between what the customers want and what management thinks customers want.
Gap 2: Standards gap
The gap between what management think customers want and the quality specifications that management develops to provide the service. It is a result of management not having provided the appropriate service designs and standards.
Gap 3: Delivery gap
The gap between the service quality specifications and the service that is actually provided.
Gap 4: Communication gap
The gap between what the company provides and what the customer is told it provides.
Gap 5: Expectation gap
The gap between the service that customers expect they should receive and the perceived service after the service has been provided.
Marketing mix for services (8 Ps)
People, process, productivity, and physical environment as well as price, product, place, and promotion.
Core service
The most basic benefits the customer is buying (The overnight rental of a bedroom at a hotel).
Supplementary services
A group of services that support or enhance the core service (Room phone, room service, pay TV, meal, etc.).
Mass customization
A strategy that uses technology to deliver customized services on a mass basis.
Internal marketing
Treating employees as customers and developing systems and benefits that satisfy their needs.
Nonprofit organization
An organization that exists to achieve some goal other than the usual business goals of profit, market share, or return on investment.
Nonprofit organization marketing
The effort by nonprofit organizations to bring about mutually satisfying exchanges with target markets.
Public service advertisement (PSA)
An announcement that promotes a program of a nonprofit organization or of a federal, provincial or territorial, or local government.
Relationship marketing level 1
Financial: pricing incentives to encourage continued business. Least effective in the long run.
Relationship marketing level 2
Social: Building social bonds with customers by staying in touch and learning their needs.
Relationship marketing level 3
Customization: Intimate knowledge of the individual and one-to-one solutions to meet their needs.
Relationship marketing level 4
Structural: structural bonds are developed by offering value-added services that are not readily available by other firms. The most effective in establishing long-term relationships with customers.
