chapter 9 Flashcards
Chapter 9
Designing and Managing
Services
an act that one entity performs for another that is essentially intangible and does not
result in the ownership of anything. It may or may not be tied to a physical product
service
government sector
private nonprofit sector
business sector
manufacturing sector
retail sector
five categories of offerings:
A pure tangible good
A tangible good with accompanying services
A hybrid offering
A major service with accompanying minor goods and services
A pure service
four key characteristics that distinguish services from products:
intangibility
inseparability
variability
perishability
Unlike physical products, services cannot be seen, tasted, felt, heard, or smelled
before they are bought
Intangibility.
Whereas physical goods are manufactured, inventoried, distributed, and later
consumed, services are typically produced and consumed simultaneously.
Inseparability.
The quality of services depends on who provides
them—as well as on when, where, and to whom; thus, services are
highly variable
Variability.
Services cannot be stored, so their perishability can be a problem when demand
fluctuates
Perishability.
changing the rules of the game for services in a very fundamental way
has great power to make service workers more productive.
technology
The digital era has clearly altered customer relationships. Customers are becoming more sophisticated about buying product-support services and are pressing for “unbundled services” and the right to select the elements they want.
Customer Empowerment
The reality is that customers do not merely purchase and use a service; they play an active role in its
delivery. Their words and actions affect the quality of their service experiences and those of others,
as well as the productivity of frontline employees
Customer Coproduction
Satisfying Employees as well as Customers
(1) pamper customers, (2) accurately read their needs, (3) develop a
personal relationship with them, and (4) deliver high-quality service to solve customers’ problems
the normal work of preparing, pricing, distributing, and promoting the service to customers.
External marketing
consists of training and motivating employees to serve customers well. Arguably the most
important contribution the marketing department can make is to be “exceptionally clever in getting
everyone else in the organization to practice marketing
Internal
marketing
Top service companies are “customer obsessed.” They have a clear sense
of their target customers and their needs, and they have developed a distinctive strategy for satisfying
them
Customer-Centricity.
quality, service, cleanliness, and value
Service quality
Many firms have decided to coddle big spenders to
retain their patronage as long as possible.
Catering to High-Value Customers.
determinants of
service quality
reliability
responsiveness
assurance
empathy
tangibles
The ability to perform the promised service dependably and accurately.
Reliability
willingness to help customers and provide prompt service.
Responsiveness
The knowledge and courtesy of employees and their ability to convey trust and
confidence.
Assurance
provision of caring, individualized attention to customers
Empathy
The appearance of physical facilities, equipment, staff, and communication materials.
Tangibles
key driver of customer satisfaction.
Service quality
