Part IV (Ch 14 + 15) Flashcards
What are the 3 p’s?
- Participants (People)
- Physical evidence
- Process
What does participants encapture?
Human actors who play a part in service delivery (employees and customers who buy the service / other customers in the environment)
What does physical evidence encapture?
Tangible clues offered to customers to asses the quality of the service provided (physical environment)
What does process encapture?
The process involved in providing a service to the customer; procedures, mechanism, and flow of activities by which a service is acquired and delivered
What is market standardization?
The undifferentiated use of the marketing mix for all countries
What is market adaption?
Adapting the marketing mix to fit the different countries?
What are three factors that provide vast opportunities for marketing standardization?
- Globalization of markets
- Globalization of industries
- Globalization of competition
The standardized marketing concept can be characterized by two features, which two?
- standardized decision-making process
* individual elements of the 4ps that can be unified
What are factors favoring standardization? (6)
- Economies of scale in research and development, production and marketing
- Global competition
- Convergence of tastes and consumer needs
- Centralized management of international operations
- A standardized concept is used by competitors
- High degree of transferability of competitive advantages from market to market
What are factors favoring adaption? (6)
- Local environment-induced adaption: sociocultural, economic, and political differences
- Local competition
- Variation in consumer needs
- Fragmented and decentralized management with independent country subsidiaries
- An adapted concept is used by competitors
- Low degree of transferability by competitive advantages from market to market
What are the 3 levels of a product?
- Support services
- Product attributes
- Core product benefits
Which of the 3 levels of a product is the easiest to standardize?
Core product benefits
What 4 features are services characterized by?
- Intangibility
- Perishability
- Heterogeneity
- Inseparability
What does intangibility mean?
Buyers of services can not claim ownership of anything tangible in the traditional sense
What does perishability mean?
Services cannot be stored for future use
What does heterogeneity mean?
Services are rarely the same because they involve interaction between people
What does inseparability mean?
Time of production is very close to or even simultaneous with the time of consumption
What does a service-dominant logic represent?
It represents a broader perspective of markets compared with traditional perspectives of markets that focus on the exchange of goods
What are the 3 categories of service?
- People processing
- Possession processing
- Information based services
What are the characteristics and examples of people processing?
Customers become part of the production process. The service firm needs to maintain local geographic presence
e.g. education, passenger transport, healthcare, food service, lodging service (hotel)
What are the characteristics and examples of possession processing?
Involves tangible actions to physical objects to improve their value to customers. The object needs to be involved in the production process, but the owner of the object does not. A local geographic presence is required.
e.g. car repair, freight transport, equipment installation, laundry service
What are the characteristics and examples of information-based services?
Collecting, manipulating, interpreting, and transmitting data to create value. Minimal tangibility. Minimal customer involvement in the production process.
e.g. telecommunication services, banking, news, market analysis, internet services
What are e-services?
a business activity of value exchanges that is accessible through electronic networks, which include the internet and mobile networks. It involves distributing and personalizing resources in real-time over the internet.
What is cloud computing?
A general term for anything that involves delivering hosted services over the internet. In cloud computing, the word cloud is used as a metaphor for ‘the internet’