Exam 1 Flashcards
What is a Service
deed, process, and performance provided or coprovided by one entity or person for another entity or person
Why Service Marketing?
Service sector represents more than 80% of employment and 75% GDP. Trade in services is growing worldwide.
Services are…
Intangible, Heterogeneous, Simultaneous Production and Consumption, Perishable
Intangibility
Cannot be inventoried, cannot be easily patented, cannot be readily displayed or communicated, pricing is difficult
Heterogeneity
Service delivery and customer satisfaction depend on employee and customer actions, service quality depends on many uncontrollable factors, there is no sure knowledge that the service delivered matches what was planned and promoted
Simultaneous production and consumption
customers participate in and affect the transaction, customers affect each other, employees affect the service outcome, decentralization may be essential, mass production is difficult.
Perishability
It is difficult to synchronize supply and demand with services. services cannot be returned or resold
7 P’s
Product, Price, Place, Promotion, People, Process, Physical Evidence
figure 1.5 goods and services
most goods are easy to evaluate where most services are difficult to evaluate. From easy to difficult- high in search qualities, high in experience qualities, high in credence qualities
4 Gaps
Listening, service design and standards, service performance, communication
Listening Gap “Gap 1”
difference between customer expectations of the company and company understanding of those expectations.
Key factors of Listening Gap
Inadequate customer research orientation, Lack of upward communication, Insufficient relationship focus, Inadequate service recovery
Service design standards gap “Gap 2”
difference between company understanding of customer expectations and the development of customer driven service designs and standards.
Service performance gap “Gap 3”
discrepancy between the development of customer driven service standards and actual service performance by company employees.
Communication gap
difference between service delivery and service providers external communications.
