Marketing Flashcards
Adam Smith’s famous book
The Wealth of Nations
The Wealth of Nations Author
Adam Smith
The Wealth of Nations Published what year and country
1776 in Great Britain
Was originally associated with the work that servants did for their masters.
Service
Over a huge variety of different and often very complex activities, making them difficult to define.
Service
“honorable, useful, or necessary, created services that perished at the time of production and therefore didn’t contribute to wealth.
Unproductive labor
argue that services involve a form of rental through which customers can obtain benefits.
Christopher Lovelock and Evert Gummesson
seven strategic levers of services marketing used to develop strategies for meeting customer needs profitably in competitive markets.
7ps
Five broad categories within the non-ownership framework
Labor, skills, and expertise rentals.
Rented goods services
Defined space and facility rentals
Access to shared facilities
Access and use of networks and systems
are economic activities performed by one party to another. Often time-based
Service
are performed on people’s bodies or to their physical possessions
Tangible actions
are performed on people’s minds or to their intangible assets.
Intangible Action
Service directed at people’s bodies.
People processing
service directed at people’s mind
Menta stimulus processing
Service directed at physical possession.
Possession processing
Service directed at intangible assets
Information processing
Intangibility, Heterogeneity, Inseparability of production and consumption, and Perishability of output.
IHIP
lie at the heart of a firm’s marketing strategy.
Service product
Service distribution may take place through physical or electronic channels
Place and Time
What should we tell customers and prospects about our services
Promotion and Education
product value, payment is very important in allowing a value exchange to take place
Price and Other User Outlays
Smart managers know that where services are concerned, how a firm does things is as important as what it does
Process
the design of the physical environment or services cape
Physical Environment
direct interaction between customers and service employees
People
need awareness, information search, evaluation of alternatives, and making a purchase decision.
Prepurchase
When a person or organization decides to buy or use a service, it is triggered by an underlying need or needs arousal.
Need Awareness.
Once a need has been recognized, customers are motivated to search for solutions to satisfy that need.
Information Search
can be derived from past experiences or external sources such as social media, and online reviews. The brand comes from people’s minds when need a product or service
Evoked set
narrow it down to a few alternatives to seriously consider, and these alternatives
Consideration set
model holds that consumers use service attributes important to them to evaluate and compare alternative offerings in their consideration set.
Multi-Attribute Model
The multi-attribute model assumes that consumers can evaluate all important attributes before purchasing.
Service attribute
They are tangible characteristics that customers can evaluate before purchasing.
Search attribute
they cannot be evaluated before purchase.
Experience attribute
these are characteristics that customers find hard to evaluate even after consumption
Credence attribute
usually greater for services that are high in experience and credence attributes, and first-time users are likely to face greater uncertainty.
Perceieved risk
formed during the search and decision-making process through a customer’s search and evaluation of information and alternatives
Expectation
The type of service customers hopes to receive is termed the desired service. It’s a “wished for” level.
Desired Service
The minimum level of service customers will accept without being dissatisfied,
Adequate Service
This is the level of service that customers actually anticipate receiving at a specific service encounter.
Predicted service
It can be difficult for firms to achieve consistent service delivery at all touch points across many service delivery channels, branches, and often thousands of employees.
Zone of tolerance
quite simple and can be made quickly without too much thought.
Purchase decision
an organized approach where customers are presented with coherent evidence of the company’s targeted image and its value proposition.
Evidence management
barrow the word “Moments of Truth”
Richard Normann
the customer initiates, experiences, and consumes the service.
Service encounter
means there is direct contact between customers and the firm throughout the entire service delivery.
High contact service
involve little, physical contact
Low-contact service
service delivery consists of a series of events that customers experience as a performance
Theater Metaphor
is a particularly useful approach for high-contact service providers
Metaphor
defined as combinations of social cues or expectations of society that guide behavior in a specific setting or context.
Role theory
define a role as “a set of behavior patterns learned through experience and communication
Stephen Grove and Ray Fisk
means that the customer can change the situation and ask for customization beyond what the firm typically offers.
Behavioral control
means that the customer can choose between two or more standardized options
Decision control
refers to the customer understanding why something happens. Also, can predict what happen next.
Cognitive control
Cognitive control Also called as
predict control
evaluation of the service performance. Future Intentions.
Post-encounter stage
If performance is better than expected.
Positive disconfirmation
If performance perceptions are worse than expected.
Negative dosconfirmation
If it is as expected
Confirmation of expectations
survey instrument developed by Valarie Zeithaml and her colleagues.
SERVQUAL
Is seen as a generic measurement tool that can be applied across a broad spectrum of service industries.
SERVQUAL
is a customer’s willingness to continue patronizing a firm over the long-term
Loyalty
The opposite of loyalty.
Defection
implies a defined and consistent “bundle of output” as well as the ability to differentiate one bundle of output from another.
Product
Service performances are experienced rather than owned.
Service product
is “what” the customer is fundamentally buying.
Core Product
central component supplying the principal benefits and solutions that customers seek.
Core Product
which augment the core product, both facilitating its use and enhancing its value.
Supplementary Service
The third component in designing a service concept concerns the processes used to deliver both the core product and each of the supplementary services.
Delivery Processes
consists of the core service and a range of supplementary services.
Flower of Service
Facilitating Service
Information
Order-taking
Billing
Payment
Enhancing Services
Consultation
Hospitality
Safekeeping
Exceptions
To obtain full value from any good or service, customers need relevant information Order-Taking.
Information
Once customers are ready to buy, a key supplementary element comes into play
Order-taking
common to almost all services
Billing
In most cases, a bill requires the customer to take action on payment
Payment
In contrast to information, which suggests a simple response to customers’ questions consultation. Involves a dialog to probe for customer requirements and then develop a tailored solution.
Consultation
It represents a more subtle approach to consultation because it involves helping customers to better understand their situations so they can come up with their “own” solutions and action programs.
Counseling
should ideally reflect the pleasure of meeting new customers and greeting old ones when they return.
Hospitality
When customers are visiting a service site, they often want assistance with their personal possessions.
Safe Keeping
Involve supplementary services that fall outside the routine of normal service delivery.
Expectation
Type of expectation
Special requests
Problem-solving
Handling of complaints/suggestions /compliments
Restitution
A customer may request service that requires a departure from normal operating procedures. Common requests relate to personal needs
Special requests
Sometimes normal service delivery (or product performance) fails to run smoothly because of an accident, delay, equipment failure, or a customer having difficulty using a product.
Problem-Solving
This activity requires well-defined procedures. It should be easy for customers to express dissatisfaction, offer suggestions for improvement, or pass on compliments.
Handling of complaints/suggestions /compliments
Many customers expect to be compensated for serious performance failures. Compensation may take the form of repairs under warranty, legal settlements, refunds, an offer of free service, or other forms of payment-in-kind.
Restitution
