Service Marketing

Question 1

Definition of Service

Answer 1

An intangible product involving a deed, performance or effort that cannot be physically possessed. - Dibb 2003

Question 2

Service Definition

Answer 2

an intangible product involving a deed, performance or effort that cannot be physically possessed. Dibb 2003

Question 3

He who serves best wins?

Answer 3

As products become more similar organisations are increasingly differentiating themselves via superior service.
Every business is a service business.

Question 4

Service Characteristics

Answer 4

Intangibility
Inseparability
Perishability
Heterogeneity/ Variability - Kotler

Question 5

Intangibility

Answer 5

Cannot be sensed before purchase.
lack of trail makes it high risk.
Consumers rely on cues to draw quality references.
Marketers must try to “tangibilize the intangibile”

Question 6

Inseparability

Answer 6

Both the staff and the consumer are required for the service to functions - the consumers plays a key role in the service.
Services are produced and consumed at the same time.

Question 7

Perishability

Answer 7

The service cannot be stored and perishes once the service point has been carried out.
Capacity and demand management are critical.
E.g Once a flight takes off, it is them deemed perished. Why Flights are discounted the day before.

Question 8

Heterogeneity/ Variability

Answer 8

The differentiation in the routine and standard of the service.
Quality control is crucial.
Hiring the right people to maintain a routine standardized service.
Monitoring satisfaction.

Question 9

Marketing Mix

Answer 9

Product
Price
Place
Promotion
People
Physical Evidence
Process

Question 10

People

Answer 10

Providers (i.e employees) are identified with the service organisation itself.
Bad customer service from a single employee can stain the reputation of the whole of the service provider in the eyes of the consumer.
The inclusion of employees in the marketing mix implies that organisations should engage in internal marketing.

Question 11

Physical Evidence

Answer 11

The consumer often goes to the provider and is present when the service takes place.
Quality judgements from consumers may be subjective and depend largely on the installations, facilities, atmosphere.

Question 12

Process

Answer 12

Striving for consistency and high standards.

Blueprints/ scripts used to describe the service process.

Question 13

Service Marketing and Ethics

Answer 13

is variable services ever justified?

Can a culture become too service orientated.