Services

Question 1

Service

Answer 1

exchange of human/mechanical effort (skill/expertise) to provide to people/objects without ownership

Question 2

Nature of services

Answer 2

tangible and intangible but dominated by intangibility, found everywhere (ubiquitous)

Question 3

Importance in NZ

Answer 3

73.9% employees in service sector, 70% of GDP

Question 4

Examples

Answer 4

childcare, air travel, legal advice, insurance, repairs

Question 5

4 service characteristics

Answer 5

intangibility, perishability, variability, inseparability

Question 6

Intangibility

Answer 6

cannot be perceived by the senses, cannot be physically possesed. creates uncertainty

Question 7

Reducing customer uncertainty with intangibility

Answer 7

tangible cues (logos, uniform), guarantees, testimonials, word of mouth, servicescape

Question 8

Intangibility marketing challenges

Answer 8

difficult for customer to evaluate, no physical possession, difficult to advertise and display and set and adjust prices, process not protectable

Question 9

Inseparability

Answer 9

production and consumption happens at the same time. shared responsibility (co creation)

Question 10

Implications of inseparability

Answer 10

direct sale only, limited operation, customisable

Question 11

Inseparability marketing challenges

Answer 11

can’t mass produce, customer participates in production, other consumers affect experience, difficult to distribute

Question 12

Perishability

Answer 12

inability of unused service capacity to be stored for later use. balancing supply and demand

Question 13

Balancing supply and demand to reduce pershability

Answer 13

production scheduling, inventory techniques, stimulating/restricting demand, increase/decrease capacity, special offerings, reservations, flexible pricing

Question 14

Perishability marketing challenges

Answer 14

can’t be stored, difficult to balance supply and demand, unused capacity is lost, time sensitive

Question 15

Variability

Answer 15

heterogeneity - variation in quality. caused by nature of human behaviour. unable to consistently deliver value

Question 16

Overcoming heterogeneity

Answer 16

service delivery systems, automate, manage customer expectation, staff training, quality control (mystery shoppers)

Question 17

Variability marketing challenges

Answer 17

quality difficult to control, delivery difficult to standardize

Question 18

Marketing mix for services

Answer 18

product, price, promotion, place, physical evidence, people, processes

Question 19

Product

Answer 19

standardising and tangibilizing services and grouping core and supplementary products to give ownership

Question 20

Price

Answer 20

variables: performance, time and demand. indicated quality

Question 21

Promotion

Answer 21

tangible cues that symbolise service. visualisation, association, physical representation, documentation

Question 22

Place

Answer 22

short and direct distribution (inseparability), high or low contact, provider present

Question 23

People

Answer 23

actors and participants involved while service is occuring. Personnel (staff) and other customers (C2C interaction, co-creation)

Question 24

Co-creation

Answer 24

customer takes active role in service experience, hugely effects the outcome

Question 25

Personnel

Answer 25

employees, face of company. right staff and training enhances customer experience. bad experiences can be saved by sympathetic staff. aesthetic/emotional labour

Question 26

C2C interaction

Answer 26

presence of other customers affects experience. direct/indirect, positive/negative impact

Question 27

Minimising negative interactions

Answer 27

positioning, staff training and layout, minimum standards, staff monitoring

Question 28

Physical evidence

Answer 28

tangible and intangible clues customer observes that represents and validates the service. Atmospherics

Question 29

Atmospherics

Answer 29

compelling and engaging atmosphere communicates brand. music, scent, lighting

Question 30

Processes

Answer 30

flow and progress of customers when engaging with product. result in performance that exceeds expectations. queuing, sensitivity, digital technology

Question 31

Mapping customer experience

Answer 31

customer journey - full product experience. visual tool helps company understand consumer behaviour. each touch point influences perception

Question 32

Service quality dimensions

Answer 32

reliability, responsiveness, empathy, assurances, tangibles

Question 33

Moment of truth

Answer 33

interaction between staff member and a customer