Part 1 - Ch1

Question 1

Definition of Service

Answer 1

“Any act or performance that one party offers to another that is essentially intangible and that does not result in ownership of anything.”
“Deeds, processes, or performances provided or co-produced by one person (entity) for another person (entity).”

Question 2

Characteristics of service - Intangibility

Answer 2

(cannot see & touch)
- Cannot be inventoried
- Cannot be easily patented
- Services cannot be readily displayed or communicated
- Pricing is difficult
- Supply and demand management are critical

Question 3

Characteristics of services - Heterogeneity

Answer 3

• Service delivery and customer satisfaction depend on employee and customer actions
• Service quality depends on many uncontrollable factors
• There is no sure knowledge that the service delivered matches what was planned and promoted
• Providing constant service quality is problematic

Question 4

Inseparability

Answer 4

(produced, consumed at the same time）
- Customers participate in and affect the transaction
- Customers affect each other
- Employees affect the service outcome
- Decentralization may be essential to near customer
- Mass production is difficult
- Everything is based on real time

Question 5

Perishability

Answer 5

(cannot be stored resold or returned)
- It is difficult to synchronize supply and demand with services
- Services cannot be returned or resold

Question 6

Challenges for service

Answer 6

• Defining and improving quality
• Designing and testing new services
• Communicating and maintaining a consistent image
• Accommodating fluctuating demand
• Motivating and sustaining employee commitment
• Setting prices
• Coordinating marketing, operations and human resource efforts, so that good strategic and tactical decisions are made
• Finding a balance between standardization versus personalization
• Protecting new service concepts from competitors
• Communicating quality and value when the offering is intangible
• Ensuring the delivery of consistent quality

Question 7

People

Answer 7

• employees, staff, or personnel who play a crucial role in delivering the service and interacting with customers.
• Significance:
  People contribute to the overall customer experience and influence perceptions of service quality.

Question 8

Physical Evidence

Answer 8

Encompasses the tangible elements or cues that customers perceive during the service encounter, including the physical environment and any tangible materials.

• Examples:
  Store ambiance, signage, brochures, and other physical elements.
• Impact:
  Physical evidence contributes to the creation of a tangible and memorable service experience.

Question 9

Processes

Answer 9

Refers to the procedures, mechanisms, or workflows involved in delivering the service.
- Key Aspects:
- Involves the steps from initiation to completion of the service.
- Ensures efficiency, consistency, and quality in service delivery.

• Importance:
  Well-designed processes contribute to customer satisfaction, operational efficiency, and overall service excellence.

Question 10

Service-Dominant Logic (SDL)

Answer 10

the centrality of services and mutual value creation in economic exchange