lecture 12 Flashcards
The communication challenge:
service is: intangible, inseparable, perishable and heterogeneous
Hence: Difficult to understand, believe and remember
Contractual or relational
Hence: high switching cost
The customer is:
Indifferent or uncertain and fearful
advertising goals
what is the goal of the proposed advertising and what aspect of service is to be advertised:
Brand identity, brand positioning and demand creation
Inputs, processes and outputs
Brand identity
Every service does have a certain part of tangible components
Physical representation
Distinct brand mark (intrinsic elements of physical delivery system, physical object extrinsic to the service product, visual symbol)
Brand positioning
Defining the brands place in the category, differentiating it from some or all competitors
Service inputs (brand positioning)
Physical representation (as cues or associations)P
Processes (brand positioning)
Performance documentations
Service performance episode
Outputs (brand positioning)
service consumption episode
Demand creation
Demand creating for the service category itself and demand for the specific service brand
Service consumption EP
service performance EP
Service consumption documentation/performance documentation
Six service communication failures
pNo unique important customer benefit
Failure to make customer benefit understood
No prominent and consistend use of brand symbols, linked to customer benefit
Insufficiently motivating communication of customer benefit
Insufficient benefit support through tangibles
Insufficient targeting of new and existing customers and personnel
Quality marks: Various forms
Certification:
Third party, process indicators, reliability, actual (sometimes min) performance
QUality marks:
Group/industry body
Input and output indicators
competence and others
Acceptable/minimum performance
Unconditional service guarantees eg
BBBK (Bugs burger bug killer)
No money until total solution
if dissatisfied 12 months money back + next years new exterminator
if guests spots during meal or room free now and in future + apology
Close than all fines 5000 dollar extra
charge ten times more
Really high market share
Unconditional service guarantees
Success criteria
1) meaningful (important aspect = understanding customer) (Substantial compensation = security)
2) unconditional = reliable (what can be controlled)
3) Easy to understand and communicate
4) easy to invoke
5) easy to collect
unconditional service guarantees (advantages)
1) customer orientation = gap 1
2) service quality standards = gap 2
3) analysis of service design = gap 3
4) feedback about delivery = gap 3
5) differentiate on USG =gap 4
–> effect: N of cust’s * relation duration * profit contribution = attraction * retention * contribution
When they fail (unconditional service guarantees)
1) when perceived risk/uncertainty is low (when is that)
2) quality leader without mistakes (negative effect on image)
3) When performance ins not controllable (external variables)
4) When customers misuse the USG (conditions, financial effect)
5) when implementation costs are too high (when is quality free)
Service communication aims to
attract –> risk and uncertainty reduction
Aid delivery -> Teach scripts, motivate personnel
Retain -> R. and u. reduction, reinforce
Focus on quality marks for acceptable and service guarantees for max performance promises
Focus on physical evidence, on original, relevant metaphors in advertising, be consistent
