Service - (3.4) Expanded marketing mix in service marketing: 7P's

Question 1

What are 3 extra p’s for service marketing and why are they relevant?

Answer 1

• Personnel decisions
• Physical evidence
• Process decisions
  »> intangibility, reduce perceived purchase risk, integrate external factors to reduce variability

Question 2

Personnel decisions basis objectives

Answer 2

competence, motivation, performance, productivity, loyalty, customer-orientation

Question 3

Physical evidence decisions basis objectives

Answer 3

conveys an image of know how and efficiency, customers can easily find their way, on reasonable distance, consistence atmosphere with services provided

Question 4

Process decisions basis objectives

Answer 4

accurate, error-free, cost-effective, flexible, transparency, reasonable process time

Question 5

Explain the empowered state of mind and following positive results

Answer 5

Empowered state of mind = personal control on job, awareness of business and strategic context in which job is performed, accountability
»> Positive results: satisfaction, motivation for employees, delighted customers, organization benefits from both returns
»> Management should thrive to this

Question 6

What are good and bad work motives?

Answer 6

Good: play, purpose, potential
Bad: emotional or economic pressure, inertia

Question 7

What are sources of high workload in services?

Answer 7

• Direct customer contact and necessary friendly treatment
• Confrontation with emotional tension in customer interaction
• Challenge to represent company constantly
• Connection between external customers and internal business organization

Question 8

What are measures to relieve the burden of the high workload?

Answer 8

• Train social skills
• Pleasant work environment
• Platform to express criticque
• Integrate management in direct customer contact
• Approval of adequate breaks
• Transfer of problem customers to most trained collegues

Question 9

Why is employee satisfaction so important?

Answer 9

Employee satisfaction, retention and productivity are part of the service profit chain

Question 10

Explain physical evidence by examples

Answer 10

Buildings, vehicles, decor, uniforms
All against the backdrop of the intangibility of service, helps create service quality
» Not everything cues as wanted to the customer

Question 11

Explain the importance of vicinity

Answer 11

Nabijheid
Remains important, we see that a lot of branches dissapear because it is possible to do services online.
Offline services like fast food - not possible –> franchising is a good way to achieve vicinity without high investments

Question 12

Explain the balance theory of atmosphere

Answer 12

Atmosphere needs to be consistent with the provided service –> customers have to feel balanced: like infrastructure + like service provider

Question 13

Explain the important role of scents in sales and the link with e-commerce

Answer 13

In store experience: customer expenditures increase 3% on average and 23% in favorable conditions due to scents.
» Favorable: scent fit to the environment, familiar aroma, females
» Hurting: to much dimensions in scence, music energy level is too different

Scents are impossible to create online!

Question 14

Error free service processes =

Answer 14

• Management of itnerfaces
• Define the optimal behavior and quality standards

Question 15

Cost effective service processes =

Answer 15

• Both for firm and customer
• Higher profitability, lower price
• Todays digitalized environment: effecitve online expenses = key

Question 16

Flexible service processes =

Answer 16

Respons promptly to changes in customer preferences
» Flexible enough so that limited deviations of the process routine do not interfere with a succesfull execution of the process

Question 17

Transparant service processes =

Answer 17

Higher transparancy = more understanding for quality problems that occur

Question 18

Explain the online expierence framework by Bleier

Answer 18

Webpage verbal + visual elements create entertainment , social pressence, informativeness and sensory appeal
» all stimulates customer purchase

Question 19

Whats the thing about processing and waiting times?

Answer 19

Exact adaptation of supply and demand is often too expensive, avoidance of waiting periods is impossible BUT customers have low tolerance for these waiting times.

Question 20

What could be solutions for these waiting times?

Answer 20

• Reservation system = agreement upon a specific moment
• Differentiation of customer according to importance, urgency, amount of time it takes
• Measures to reduce the perceived waiting time

Question 21

How to influence the perceived waiting time?

Answer 21

Increasing factors = boredom, unfairness, unnecessary waiting, uncertainty regarding the amount of time to wait, uncertainty about chosing right queue, length of queue

Decreasing factors = in process activity, waiting in group, waiting for high quality, waiting for a schedueled appointment

Question 22

What are types of queues and their advantages?

Answer 22

Multiple queues
> short waiting time
> uncertainty about choosing the right queue

Single queue
> first come, first served
> reduced waiting time
> overly long
> no choice for specific employee

Take a number
> first come, first served
> reduced waiting time
> possibility of distraction
> need to pay attention for call, fear of missing the call