Chapter 12: Services and Non-Profit Organization Marketing

Question 1

Define Intangibility as to How Services Differ

Answer 1

The basic difference between services and goods is that services have no physical attributes. Because of their intangibility, they cannot be touched, seen, tasted, or felt in the same manner that goods can be sensed

Question 2

Define Search Quality as to How Services Differ

Answer 2

Characteristics that can be easily assessed before purchase – for instance, the colour of a car of the size of a smartphone. At the same time, services tend to exhibit more experience and credence qualities

Question 3

Define Experience Quality as to How Services Differ

Answer 3

Characteristics that can be assessed only after the use, such as the quality of a meal in a restaurant

Question 4

Define Credence Quality as to How Services Differ

Answer 4

Characteristics that consumers may have difficulty assessing even after purchase because they do not have necessary knowledge or experience

• No physical attributes
• Fewer search qualities but greater experience and credence qualities
• Requires tangible cues to communicate the nature and service quality (i.e logo)

Question 5

Define Inseparability as to How Services Differ

Answer 5

Goods are produced, sold, and then consumed. In contrast, services are often sold, and then produced and consumed at the same time. In other words, their production and consumption are inseparable activities

Question 6

Define Inconsistency as to How Services Differ

Answer 6

Because services tend to be labour intensive and production and consumption and inseparable, consistency and quality control can be difficult to achieve

• Services depend on the service deliverer
• Standardization and training is required

Question 7

Define Inventory as to How Services Differ

Answer 7

Services cannot be stored, warehoused, or inventoried

Question 8

Define Service Quality

Answer 8

Because of the four unique characteristics of services, service quality is more difficult to define and measure than the quality of tangible goods. Overall, service quality is measured by customers’ evaluations of all five of the components

Question 9

What are the 5 components of service quality

Answer 9

Reliability: Preforming the service right every time (very important to consumers)

Responsiveness: Performing the service promptly

Assurance: Providing the service with knowledge and courtesy

Empathy: Paying caring individualized attention to the customer

Tangibles: Providing physical evidence of the service (physical facility, tools, equipment used)

Question 10

Define Knowledge Gaps

Answer 10

What customers want and what management thinks customers want; if the firm does little customer satisfaction research, this gap will occur

Question 11

Define Standard Gaps

Answer 11

What management thinks customers want and the specifications that management develop to provide the service; the result of management’s inability to translate customers’ needs into delivery systems within the firm management not providing the appropriate service designs and standards

Question 12

Define Delivery Gaps

Answer 12

What the service specifications are and the service that is actually delivered; management must ensure training programs and the tools and skills to do the job to meet the standards set

Question 13

Define Communication on Gap

Answer 13

What the company provides and what the customer is told it provides; companies need to create realistic customer expectations through honest and accurate communication

Question 14

Define Expectation Gap

Answer 14

What the customers expect they should receive and the perceived service that has been provided; requires ongoing research manage expectations

Question 15

What are the 8 P’s of Service Marketing

Answer 15

Product, Price, Place, Promotion, People, Process, Productivity, Physical Environment

Question 16

How do you make the intangibles tangible

Answer 16

Logs, Tag Lines, Promotional Materials = Tangible Evidence (can make into tangible)

Question 17

Define People Processing as a Service Process

Answer 17

Service is directed at a customer

Question 18

Define Possession Processing as a Service Process

Answer 18

Service is directed at a customers’ physical possession

Question 19

Define Mental Stimulus Processing as a Service Process

Answer 19

Service directed at customers’ minds

Question 20

Define Information Processing as a Service Process

Answer 20

Service that uses technology directed at a customers’ assets

Question 21

Define Establishing Standards to ensure

Answer 21

The service delivery is consistent and compatible with the service positioning (Critical because of the inseparability of services)

Question 22

Define what Standard Gaps and Delivery Gaps Must have/do

Answer 22

Must be managed to improve the service: Managing the employee; the service provider is highly strategic (incentives, training, recognition programs)

Question 23

Define Stress Tangible Cues as a Promotion Strategy

Answer 23

A concrete symbol that communicates a message

Question 24

Define Use of Personal Information as a Promotion Strategy

Answer 24

Someone the consumer can relate to, or use social media sites to create conversation

Question 25

Define Creating a Strong Organizational Image as a Promotion Strategy

Answer 25

Managing the evidence, the physical space, the staff, the website, and marketing materials

Question 26

Define Unit of Service Consumption as a Pricing Strategy

Answer 26

Specific tasks, time based, goods consumers with service

Question 27

Define Multiple Elements as a Pricing Strategy

Answer 27

Bundle Prices vs Separate Prices

Question 28

Define Setting Price Objectives as a Pricing Strategy

Answer 28

Revenue, Operations, or patronage price objectives, or a combination