Chapters 13-16 Flashcards
Service Product Continuum
Service dominant -> product dominant (most are somewhere in the middle)
Services
intangible product - 70% of US GDP
Characteristics of services
Intangibility Inseparability close customer contact client-based relationships heterogeneity perishability
Intangibility
major characteristic that distinguishes services from goods
Inseparability
services are produced and consumed at the same time
perishability
unused services cannot be stored for future use
heterogeneity
diversity
customer contact
level of interaction needed to deliver service
Development of services
core services: basic service experience a customer could receive
supplementary services: one of more services used to differentiate from competitors
Search qualities
tangible attributes such as color, style, size, etc
Experience qualities
attributes such as taste, satisfaction, pleasure - can be assessed only during consumption
Credence qualities
attributes that can’t be evaluated until after service ends
4 factors that affect service quality
- analysis of customer expectations
- service specifications
- employee performance
- management of service expectations
Employee performance
customer contact employees are often the least trained and lowest-paid
Supply Chain Management
set of approaches used to integrate various operations to get products distributed in the right quantities at the right times
Marketing channel
group of individuals that direct the flow of products from producers to customers
Marketing intermediaries
middlemen that link producers to other intermediaries through contractual arrangements
Selecting marketing channel
customer characteristics: consumer or business market?
product attributes: complex or standard?
Type of organization: large or small?
Competition: high or low?
Intensive distribution
uses all available outlets to distribute a product
- convenience products
- multiple channels may be used
Selective distribution
uses only some available outlets
- for shopping products
- desired when a special effort is important to customers
Exclusive distribution
uses a single outlet in a fairly geographic area
for products purchased infrequently
Channel captain
dominant leader of a marketing channel
Channel power
the ability of one channel member to influence another member’s achievements
Vertical channel
vertical channel integration: combines two or more stages of the marketing channel under one management
Vertical conflict: between manufacturers and retailers
