Services

Question 1

What are the 3 Ps of service?

Answer 1

• people: employees, management, culture, customer service
• process: especially relevant to service industries, how are services consumed?
• physical evidence: smart, rundown, interface, facilities, comfort

Question 2

What are the four characteristics of a service?

Answer 2

• intangibility
• perishability
• heterogeneity
• inseparability

Question 3

What are some marketing responses to intangibility?

Answer 3

• provide tangibility through appearance of the facility
• employee uniforms
• logo
• website
• advertising

Question 4

What are some marketing responses to perishability?

Answer 4

• adjusting price to demand

- adjusting services to match demand (capacity management)

Question 5

What are some marketing responses to variability?

Answer 5

• institute TQM
• offer service guarantees
• conduct gap analyses

Question 6

What are some marketing responses to inseparability?

Answer 6

• train employees about successful service encounters

- explore means of disintermediation

Question 7

What are the three types of services?

Answer 7

• people processing (low possibility of standardization)
• possession processing (medium)
• information based services (high)

Question 8

What are some characteristics of E businesses and services?

Answer 8

• rapid development of new services
• low marginal costs of service delivery
• high degree of outsourcing
• continuous improvement of e-services
• transparent service feedback

Question 9

What are the three service classifications?

Answer 9

• goods dominated products
• equipment/facility based services
• people based services

Question 10

What is servicescape

Answer 10

• a way service becomes tangible
• the actual physical facility where the service is performed, delivered, and consumed
• growing importance of websites (searchability, attractivity, etc.)
• SEO

Question 11

What are the three service quality attributes?

Answer 11

• search qualities (what they can examine before purchase)
• experience qualities
• credence qualities (things difficult to evaluate even after experience)

Question 12

What are three ways to measure the quality of a service?

Answer 12

• servqual
• gap analysis
• critical incident technique

Question 13

What is servqual?

Answer 13

Multiple item scale used to measure service across dimensions of tangibles, reliability, responsiveness, assurance, and empathy

Question 14

What is a gap analysis?

Answer 14

Marketing research method that measures the difference between a customer’s expectation service quality and what actually occured

Question 15

What is a critical incident technique?

Answer 15

Marketers use customers complaints to identify critical incidents

Question 16

What are the three types of service marketing

Answer 16

• internal
• external
• interactive

Question 17

What is the service profit chain?

Answer 17

internal service quality > satisfied and productive employees > greater service value > satisfied and loyal customer > healthy service profits and growth

Question 18

How do you manage service differentiation?

Answer 18

• providing different services than competition
• cheaper price is important in low differentiated markets
• better customer contact
• brand image

Question 19

How do you manage service productivity?

Answer 19

• need for continuous increase of productivity due to rapidly rising costs
• industrialization of the service by adding equipment and standardizing production
• don’t push productivity too much or quality of service will drop