Exam 2 - Chapter 13 Flashcards
Service (as a product)
an intangible product that involves a deed, a performance, or an effort that cannot be physically possessed
ex: hotels, laundry, college ed., etc.; **NOT customer service
Service as Theater
actors (service workers) create a performance (service)
6 Characteristics of Services
a. intangibility
b. inseparability of production and service
c. perishability
d. heterogeneity
e. client-based relationships
f. close customer contact
Intangibility
distinguishes a service from a good
a service is not physical and cannot be perceived by the senses
ex: you can’t feel insurance
Tangibility Continuum
products are not necessarily just goods or services, they lie along a continuum
pure goods are rare because most goods have a service component
ex: sugar to education
Inseparability of Production and Consumption
the quality of being produced and consumed at the same time
implies a shared responsibility between the customer and service provider - they work together
ex: surgery
Perishability
unused service capacity from one time period cannot be stored for future use
must balance supply and demand
ex: hotel rooms per night
Heterogeneity
service has variations in quality when delivered by people
manufactured goods are easier to standardize
as more people become involved people spend more time and there are more opportunities for bad quality
Client-Based Relationships
interactions that result in satisfied customers who used a service repeatedly over time
build trust, satisfy customers, demonstrate customer commitment
ex: finding a new doctor
Customer Contact
the level of interaction between provider and customer needed to deliver the service
high - health care/real estate
low - tax filing/auto repair
Development of Services
the characteristics of services create marketing challenges and opportunities
services generally come in a bundle
Core Service
the basic service experience a customer expects to receive
ex: laundry service
Supplementary Service
one or more supportive services used to differentiate the service bundle from competitors’
ex: free pick up/delivery
Promotion of Services
intangibility results in promotion-related challenges
personal selling can help customers visualize the service experience
Pricing of Services
marketers must decide whether to bundle options and how to price bundle
often an indicator of service quality to consumers
ex: hotel/airplane seats
Pricing Considerations/Based On?
a. consumer price sensitivity
b. nature of the transaction
c. costs
d. performance of specific tasks
e. time
f. level of demand
Service Quality
customers’ perceptions of how well a service meets or exceeds their expectations
**marketers must determine what customers expect and meet those expectations
Search Quality (for Goods)
tangible attributes (of a product) such as color, style, size, feel, or fit that can be judged before the purchase of a product
Experience Qualities (Services)
Attributes, such as taste, satisfaction, or pleasure, that can be assessed only during purchase and consumption of a service
Credence Qualities (Operations, Tax, and Legal)
Attributes that customers may be unable to evaluate even after purchasing and consuming a service lack knowledge or skills-
ex: surgery, legal, tax
5 Dimensions of Service Quality
a. tangibles
b. reliability
c. responsiveness
d. assurance
e. empathy
Tangibles
physical evidence of the service
ex: a clean shirt after dry cleaning
Reliability
consistency and dependability in performing the service
ex: accurate bank statements
Assurance
knowledge/competence of employees and ability to convey trust and confidence
ex: known and respected provider
Empathy
caring and individual attention provided by employees
ex: nurse counseling a heart patient
4 Factors that Affect Service Quality
a. analysis of customer expectations
b. service quality specifications
c. employee performance
d. management of service expectations
Analysis of Customer Expectations
desired/acceptable expectations
zone of tolerance
customer contact - employeses learn what the consumers want
Service Quality Specifications
an organization must set goals to ensure good service delivery
managers’ commitment to service quality is the most important thing!!
Employee Performance
customer-contact employees are often the least trained and lowest-paid
should be well trained/know the goals
evaluation/compensation system very important
Management of Service Expectations
must set realistic expectations about their services and deliver on promises
advertising/internal communication
word-or-mouth
