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MKTG 313 - Services > FINAL > Flashcards

FINAL Flashcards

Chapters 11-15

1
Q

employees’ role in service

A

refers to the service performance gap (3)

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2
Q

reasons gap 3 increases

A
  • deficiencies in HR policies
  • failure to match supply and demand
  • customers not fulfilling roles
  • problems with service intermediaries
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3
Q

What are the employees?

A

“Employees are the service and the brand”

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4
Q

service culture

A

a culture where an appreciation for good service exists, and where giving good service exists, and where giving good services to internal as well as external customers is considered a natural way of life and one of the most important norms by everyone

  • essentially where a good culture is appreciated and provided to internal and external customers as a norm
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5
Q

Employees are:

A

“walking billboards”
- the service
- the organization in the customers eyes
- the brand
- the marketers

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6
Q

the service triangle

A
  • external marketing = making the promise
  • interactive marketing = delivering the market
  • internal marketing = enabling the promise
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7
Q

External marketing = making the promise

A
  • understanding customer needs
  • managing expectations - “under promise, over deliver”
  • sales and promotion
  • advertising
    -internet and website communication
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8
Q

Interactive marketing = keeping promises

A
  • service delivery
    -face-to-face, telephone, and online interactions
  • customer interactions with sib-contractors or business partners
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9
Q

Internal marketing = enabling the promise

A
  • hiring the right people
  • training and developing people to deliver service
  • appropriate technology and equipment
  • rewards and incentives
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10
Q

the effect of employee behaviors on service quality dimensions

A

SERVQUAL - RATER

reliability, assurance tangibles, empathy, and responsiveness

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11
Q

boundary-spanning roles

A

usually relates to emotional labor, which is the labor that goes beyond the physical and mental skills needed to deliver quality services

  • creates potential conflict
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12
Q

customer oriented service delivery

A
  1. hire the right people
  2. develop people to deliver service quality
  3. provide needed support systems
  4. retain the best employees/people
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13
Q

pros of employee empowerment

A
  • quicker responses to customer needs during service delivery
  • quicker response to dissatisfied customers
  • employees during their jobs feel better about it and themselves
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14
Q

cons of employee empowerment

A
  • potentially greater dollar investment in selection and training
  • higher labor costs
  • potentially slower or inconsistent service deliver
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15
Q

strategies for delivering service quality though people: hiring the right people

A
  • compete for the best people
  • hire for services commences and service inclinator
  • be the preferred employer
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16
Q

strategies for delivering service quality though people: developing people to deliver service quality

A
  • train for technical and interactive skills
  • empower employees
  • promote teamwork
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17
Q

strategies for delivering service quality though people: providing needed support and systems

A
  • measure internal service quality
  • provide supportive technology and equipment
  • develop service-oriented internal process
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18
Q

strategies for delivering service quality though people: Retaining the best employees/people

A
  • include employees in the company’s vision
  • treat employees as customers
  • measure and reward strong service performance
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19
Q

how customers are when the service performance gap exists

A
  • lack of understanding of their roles
  • not being willing or able to perform their roles
  • no rewards for “good performance”
  • interference with or from other customers
  • incompatible market segment
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20
Q

customers must participate TOO??

A
  • low level = presence required
  • moderate level = inputs required
  • high level = cocreation
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21
Q
A

” other customers can ENHANCE or DETRACT from customer satisfaction and perceptions of quality

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22
Q

customer roles in service delivery

A
  • productive resources = “partial employees”
  • contributors to quality, satisfactions, and value
  • competitors
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23
Q

customers as productive resources

A

customers can be seen as “partial employee” therefor they contribute effort, time, or other resources to the production process

24
Q

customers as competitors

A

internal/external decisions are often based on:
- expertise ca[acity
- resource capacity
- time capacity
- economic rewards (save money)
- psychic rewards (satisfaction, enjoyment, gratification)
- trust
- control

25
Q

SST - self-service technology

A
  • ATMS
  • kiosks
  • online check-in
  • self-checkout
  • distance education
26
Q

servie production continuum

A

1-2 Customer production
3-4 joint production
5-6 Firm production

27
Q

something to consider before implementing SSTs

A

-what is your strategy?
- what do we hope to achieve through the SSTs?
- how can customers be motivated to try the SST?
- are some segments of customers more ready to use the tech than others?

28
Q

strategies for enhancing customer participation

A
  • define customer roles
  • recruit, educate, and reward customers
  • managing the customer mix
29
Q

variations in demand relative to capacity (Figure 13.1)

A
  1. demand exceed capacity (business is lost)
  2. demand exceeds optimal capacity (quality declines)
  3. ideal use
  4. excess capacity (wasted resources)
30
Q

capacity constraints

A
  • time
  • labor
  • equipment
  • facilities
31
Q

demand patterns

A
  • charting demand patters
  • predictable cycles
    -random demand fluctuations
  • demand patterns by market segments
32
Q

shifting demand to match capacity: demand too HIGH

A
  • reduce demand during peak times
  • communicate busy says and times to customers
  • modify timing and locations of service delivery
  • offer incentives for non-peak usage
  • set priorities by taking care of loyal or high need customers first
  • charge full price for the service
33
Q

shifting demand to match capacity: demand too LOW

A
  • increase demand to match capacity
  • educate customers about peak times and benefits of non-peak use
  • vary hoe the facility is used
  • vary the service offering
  • differentiate on price
34
Q

adjusting capacity to match demand: demand too HIGH

A
  • increase capacity temporarily
  • stretch people, facilities, and equipment temporarily
  • use-part time employees
  • cross train employees
    -out source activities
    -rent or share facilities and equipment
35
Q

adjusting capacity to match demand: demand to LOW

A
  • adjust use of resources
  • schedule downtime during periods of low demand
  • perform maintenance and renovations
    -schedule vacations and employee training
  • modify or move facilities an equipment
36
Q

waiting line configuration

A
  • multiple que
  • single que
  • take a number
37
Q

waiting line strategies

A
  1. differentiate waiting customers
    • importance of the customer
    • urgency if the job
    • duration of the service transaction
    • payment of premium price
  2. establish a reservation process
  3. make waiting more pleasurable
    • provide entertainment
    • offer personal services to make waiting more comfortable
    • communicate with waiting customers to minimize frustrations
    • create a pleasant atmosphere for waiting customers (music, wifi, comfy seating)
38
Q

issues to consider in making waiting more pleasurable

A
  • anxiety makes waits seem linger
  • uncertain waits seem longer than unknown, finite waits
  • unexplained waits seem longer than explained
  • the more valuable the service, the longer the customer will wait
39
Q

three key differenced between customer evaluation pf pricing services and goods:

A
  1. customers often have inaccurate or limited reference prices for services
  2. monetary price is not the only price relevant to service customers
  3. price is a key signal to quality in services

PRICE = VALUE

40
Q

customer knowledge of service prices

A

customers often lack reference prices for services
- service variability limits knowledge
- providers are unwilling to estimate prices
- individual customer needs vary
- collecting of price information for services is difficult
- prices are not visible

41
Q

the role of monetary costs

A
  • time cost
  • search costs
  • convenience costs
  • psychological costs
42
Q

three basic marketing structures and challenged for services

A
  • cost-based
  • competition-based
  • demand-based
43
Q

demand oriented pricing

A
  • skimming pricing
  • penetration pricing
  • prestige pricing
  • odd-even pricing
  • bundle pricing
44
Q

skimming pricing

A

charging the highest price customers are willing to pay (iPhones)

45
Q

penetration pricing

A

entering the market at the lowest price possible (netlfix)

46
Q

prestige-pricing = premium pricing

A

luxury customers, more money = better service

47
Q

odd-even pricing

A

pricing a few cents below the even dollar amount

48
Q

bindle pricing

A

bundling services into one price

49
Q

cost-oriented pricing

A

when component cost are calculated and a markup is added

50
Q

competition-based pricing

A
  • price signaling
  • going-rate pricing
51
Q

price signaling

A

any price offered by one will be matched by competitors (re-active)

52
Q

going-rate pricing

A

charging them out prevalent price in the market

53
Q

four customer definitions of VALUE

A
  • value is a low price
  • value is everything I want in a service
  • value is the quality I get for the price I pay
  • value is all that I get for all that I give
54
Q

value is a low price

A
  • discounting (coupons)
  • odd pricing (odd-even pricing)
  • synch-prining
  • penetration pricing
55
Q

value of everything I want I na service

A
  • prestige pricing
  • skimming pricing
56
Q

value of the quality I get for the price I pay

A
  • value pricing
  • market segmentation pricing (what you pay is what your get)
  • price discrimination (charging different prices for different age demographics)
57
Q

value is all that I get for all that I give

A
  • price framing
  • price bundling
  • complementary pricing
  • result-based pricing (injury attorneys)

MKTG 313 - Services (2 decks)

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