Lecture 14 Services Marketing Flashcards
True or false: services are products?
Services are intangible products
Which is tangible? Physical goods or services?
Physical goods
Which is homogenous?
Physical goods or services?
Physical goods
Which has production, distribution and consumption as simultaneous processes?
Physical goods or services?
Services
What is a service?
An activity or process
Where is the core value created for physical goods?
Core value processed in a factory
Where is the core value created for services?
Core value produced in the buyer-seller interaction
For which type of product do customers participate in production?
Services
For which type of product can stock be kept?
Physical goods
For which product is there a transfer of ownership?
Physical goods
What do most products have?
A service component
What 4 things could the service component be?
Equipment based
People based e.g. varying skill levels
Personal needs
Business needs
What are 3 types of service industry?
Government
Private not-for-profit organisations
Business organisations
What does the continuum range from?
Pure service Teaching House cleaning Plumbing repair Restaurant Made to measure clothing New car Radio Soft drinks Salt Pure commodity good
What are the two sides to the tangibility spectrum?
Tangible dominant and intangible dominant
What are the 6 types of service industry?
Health care Professional services Financial services Hospitality Travel Others
What is included in the healthcare service?
Hospitals, medical practices, dentistry, eye care
What is included in the professional services?
Accounting, legal, architectural
What is included in financial services?
Banking, investment advising, insurance
What is included in hospitality?
Restaurant, hotel/motel, bed and breakfast, ski resort, rafting
What is included in travel services?
Airlines, travel agencies, theme park
What are the other services?
Hair styling, pest control, plumbing, lawn maintenance, counselling, health clubs
What are the 4 service characteristics?
Intangibility
Variability
Inseparability
Perishability
What is intagibility?
Services cannot be seen, tasted, heard, felt or smelled before purchase
What is meant by variability?
Quality of service depends on who provides them and when, where and how
What is meant by inseparability?
Services cannot be separated from their providers
What is meant by perishability?
Services cannot be stored for later sale or use
How are services created?
Through direct interactions with customers
What are the 3 additional marketing strategies required by services?
Service-profit chain
Internal marketing
Interactive marketing
What does service-profit chain do?
It links the service firm profits with employee and customer satisfaction
How does service-profit chain work?
Internal service quality Satisfied and productive service employees Greater service value Satisfied and loyal customers Healthy service profits and growth
What is internal marketing between?
The employees and the company
What is external marketing between?
The company and the customers
What is interactive marketing between?
Customers and employees
What does internal marketing mean?
That the service firm must orient and motivate its customer-contact employees and supporting service people to work as a team to provide customer satisfaction
What does interactive marketing mean?
It means that service quality depends heavily on the quality of the buyer-seller interaction during the service encounter
What are three factors associated with interactive marketing?
Service differentiation
Service quality
Service productivity
What does managing service differentiation create?
A competitive advantage
What are 3 parts of managing service differentiation?
Offer
Delivery
Image
What does managing service quality do?
It enables a service firm to differentiate itself by delivering consistently higher quality than its competitors provide
What does managing service productivity refer to?
The cost side of marketing strategies for service firms
What are two things involved in managing service productivity?
Employee hiring and training
Service quantity and quality
What are the 5 determinants of service quality?
Reliability Responsiveness Assurance Empathy Tangibles
What is meant by reliability?
Delivering on promises
What is meant by responsiveness?
Willing to help
What is meant by assurance?
Inspiring trust and confidence
What is meant by empathy?
Individualising customers
What is meant by tangibles?
Physical representation
What are the 7Ps for services?
Product Price Place Promotion People Process Physical evidence
What is included in the product part of the 7Ps?
Physical good features Quality level Accessories Packaging Warranties Product lines Branding
What is included in the place part of the 7Ps?
Channel type exposure Intermediaries Outlet location Transportation Storage
What is included in the promotion part of the 7Ps?
Promotion blend Salespeople Advertising Sales promotion Publicity
What is included in the price part of the 7Ps?
Flexibility Price level Terms Differentiation Allowances
What is included in the people part of the 7Ps?
Employees
Customers
Communicating culture and values
Employee research
What is included in the physical evidence part of the 7Ps?
Facility design Equipment Signage Employee dress Other tangibles
What is included in the process part of the 7Ps?
Flow of activities
Number of steps
Level of customer involvement
What methods can be used to improve services marketing?
Develop a customer oriented mission statement
Support for quality improvement initiatives
regular customer satisfaction research
Monitor standards and communicating results
Establish systems for customer complaints and feedback
Encourage employee participation
Reward excellent service
