chapter 7 (unit 2) Flashcards
QUIZ: True or False: Because services have different characteristics than products, marketing services require a different approach than does product marketing.
true
QUIZ: Services are
* Intangible
* Often purchased with physical goods
* Provided by a person or technology for benefit of another person
* All of these
- All of these
QUIZ: All of the following are characteristics of services except:
* Inseparability
* Intangibility
* Perishability
* Reliability
- Reliability
QUIZ: Orchestrating a great _ is a powerful way to differentiate a service for which there are alternatives.
* Customer experience
* Marketing concept
* Advertisement
* Buyer process
- Customer experience
QUIZ: The service blueprint contains all of the following elements EXCEPT
* Sequence
* People
* Process
* Physical evidence
- Process
QUIZ: The evaluation of services occurs almost exclusively __ purchasing and experiencing the service.
* Before
* During
* After
* None of these
- After
QUIZ: When services are created or produced at the time consumers need them, they fall under the characteristic of
* Variability
* Perishability
* Inseparability
* Intangibility
- Perishability
QUIZ: Which of the following is NOT included in the process of making a service “failsafe”?
* Identifying fail points
* Constantly improving the quality and reliability of the service
* Creating coupons in case of failure
* Identifying potential fail points
- Creating coupons in case of failure
QUIZ: What is the satisfaction a customer has with every aspect of a brand - Its messages, people, service processes, technology, and physical environment - through every service encounter across the entire life of the relationship?
* Customer lifetime value
* Customer satisfaction
* Customer experience
* Post-purchase evaluation
- Customer experience
QUIZ: True or False: Focus groups or in-depth interviews are both good ways to get the information necessary for journey mapping effectively.
true
services
Intangible products, often purchased with physical goods, delivered in the form acts or deeds performed for or with the customer
services marketing
The process of planning, delivering and then improving the individual service acts and performances that create memorable experiences when satisfying a buyer’s needs
characteristics of services
Inseparability
Variability
Perishability
Intangibility
intangibility
Services aren’t difficult to copy
Displaying services and communicating about them is difficult
Pricing services is challenging
Consumers perceive greater risk in services
Many services are difficult to evaluate
marketing for intangibility
Convey the benefits of the service
Set consumer expectations
Challenges:
Services have no physical presence, which complicates pricing and communication
Consumers often have trouble evaluating them
perishability
Businesses cannot hold services in inventory
Balancing supply and demand is difficult
Consumers can’t return services
marketing for perishability
Companies should invest in resources and personnel to deliver services at the appointed time
Challenges:
Impossible to store or transport services
Once a time of opportunity passes, the chance to sell the service instantly vanishes
variability
Mass producing services that humans must deliver isn’t possible
Managing customer satisfaction is harder
Achieving consistent service performance is difficult
marketing for variability
Train staff well
Have precise performance standards
Measure service outcomes to determine customer satisfaction
Challenges:
Customers will rarely want the exact same service
inseperability
Customers impact other customers
Sometimes, the presence of other customers enhances the service experience, such as at a sporting event where you’re surrounded by fellow fans.
Employees impact the outcome
Humans are often involved in delivering a service, and humans are imperfect. A frontline service employee can have a bad day or feel mistreated by management, affecting their performance.
Customer involvement is a must
While it seems obvious that customers are involved in the services they consume, their willingness to participate can vary, and their level of participation can impact their satisfaction.
marketing for inseparability
Marketing for inseparability
The service, service provider and customer intertwined
This causes an opportunity to create a unique and memorable experience for customers
Challenges:
It isn’t possible to divorce the production and delivery of a service from its consumption
services buyer behavior process
need recognition
information search
purchase
evaluation of alternatives
reaction
normal buyer behavior process is: NIEPR
so purchase and evaluation switched
pre-purchase evaluation
products and tangible goods have characteristics that allow consumers to search and get answers, or evaluate them before they purchase them.
Rarely available with services
Tangible characteristics
post-purcahse evaluation
Good service outcomes create satisfaction and loyalty that limit a consumer’s desire to consider alternatives
Comparisons to expectations and alternatives
Most common with services
customer experience
The satisfaction a customer has with every aspect of a brand through every service encounter across the entire life of the relationship
service enviroment
product consistency
training
the customer journey
Each step in this journey is usually some sort of service encounter
Providers should manage each encounter very intentionally
The goal is to create an experience for the customer that builds satisfaction, trust and loyalty
the customer journey map
A visual representation of every encounter and experience a typical customer can have
Are effective when they…
Are built from the customer’s perspective
Include all points of contact between a customer and a provider (touchpoints), digital and physical
Span the full customer relationship lifecycle
the heart of services marketing is
consistently providing superior customer experiences
customer lifetime value
The total profit associated with a customer for the duration of their relationship with the brand
CLV is a great metric for quantifying the average value of customers and how loyal they are to service providers. When a company and its employees know the true value of a customer, this knowledge is a powerful cultural influencer.
benefits of loyal customers
Far less likely to consider competing service alternatives
Less price sensitive
Open to purchasing other services the firm offers
Advocates for the service brands, which can lower provider marketing costs
Sources of new ideas and suggestions for growing the business
More forgiving of services failures
More profitable
services blueprint
A diagram that depicts a service process and the relationships between elements of the service and how they relate to the touchpoints in the customer journey
(A touchpoint is any place the company has a point of contact with the customer.
elements of a service blueprint
People
Physical evidence
Technology
Sequence
blueprint tangibles
Ads and other marketing communications
Exterior signage and the general exterior of shop, such as landscaping
Employees, the interior waiting area and other aspects of the waiting area such as furniture and magazines
Employees, the service operation area and materials used in service delivery such as styling products and equipment
blueprint failure points
Are used to identify areas where possible failures may occur
Are from the perspective of a customer
May lead to a service recovery paradox
service recovery paradox
A paradox that occurs when a failure and great recovery results in a customer being more satisfied than if there were no failure in the first place
(type of service errors) task errors
Performing the service process or task incorrectly
(type of service errors) treatment errors
Failing to treat the customer properly during an encounter
(type of service errors) tangible errors
Problems with the tangibles or physical artifacts associated with the service
(type of customer errors) preparation errors
Customer readiness issues or failures
(type of customer errors) encounter errors
Interaction problems between customer and employee(s)
(type of customer errors) resolution errors
Failure to report problems or take proper post-encounter actions
fail-safes
The purpose of identifying possible failure points is to ‘fail-safe’ these areas
Fail-safing possible failures creates consistent customer experiences
Identifying error type can show what standards should be added to prevent these failures
service marketing differs in several key areas
Intangibility, perishability, variability, and inseparability
the customer lifetime value (CLV) often justifies
the upfront investment from companies in new customers
journey mapping and service blueprints allow service providers to
implement new standards to improve customer experiences
examples of services
Accounting, such as tax preparation services
Banking, such as a checking account or an ATM
Cleaning, such as the Merry Maids house cleaning services
Education, such as pre-school for a toddler or a graduate degree program
Entertainment, such as Netflix or a concert
Insurance, such as home, life, health or auto
Medical and dental, such as an annual physical or having a cavity filled
Transportation, such as Uber or a municipal mass transit system
bundling products and services are…
on the rise because it provides the seller with a competitive advantage, and customers get more value this way
customer experience three powerful service beliefs or standards
Service Environment
Whenever a customer enters a Starbucks, a team member greets the customer. In fact, many baristas have developed relationships with regular customers, knowing their names and preferred drinks. The company coined the term “third place” to represent the atmosphere that isn’t home, isn’t work, but is a “third place” for people to gather.
Product Consistency
A beverage purchased at one Starbucks location is the same quality, flavor, and temperature of the same beverage purchased at any other Starbucks location. Achieving this consistency is a remarkable feat, considering how many locations and employees Starbucks has.
Training
The way Starbucks creates its environment and maintains product consistency is through setting standards, training employees to meet them, and measuring compliance with them. The standard for making a Vesuvius in the Starbucks video below helps employees worldwide make beverages that have consistent taste and quality
