Services marketing

Question 1

Factors distinguishing services from physical products

Answer 1

services are intangible
Production and consumption often occur at virtually the same Time
services are perishable
services cannot be tried out before buying
services are variable even from same supplier

Question 2

Four factors linked to brand strength in services

Answer 2

investment in marketing communication
contributing to the wider community
improving internal communication
improving service quality

Question 3

service risks

Answer 3

consequential losses arise when a service goes wrong and causes a loss to the customer
purchase price risk- customer buys a service that does not work
misunderstanding- inability to try out services (trialability)

Question 4

3Ps-People (4 categories)

Answer 4

contactors- frequent and regular contact with customers
modifiers- no direct marketing role, eg. receptionist
influencers- deals with some elements of the marketing mix but had little contact with customers
isolateds- have no customer contact and very little to do with conventional marketing function s

Question 5

Empowerment

Answer 5

giving employees the authority to sort out problems without having to refer to management
making employees responsible for their own actions
allows for issues to be quickly resolve without contacting senior management
removes level of management to lower costs
creates job satisfaction

Question 6

3Ps- Process (basic resources)

Answer 6

basic assets
explicit knowledge- knowledge that can be recorded
tactic knowledge - knowledge that employees have in the head
procedure -all other resources are brought together to create value

Question 7

3Ps Process- (3 categories)

Answer 7

Before-sales service processes
During-sales processes
after-sales processes
all 3 processes involve human interaction, provide opportunities to improve customer loyalty

Question 8

3Ps Process- effects of reducing/increasing divergence

Answer 8

Reducing divergence- reduce costs, improve productivity make distribution easier eg. Fast food
increasing divergence-offer more possibilities for customisation, greater felxibility, usually premium pricing

Question 9

3Ps Process- effects of reducing/increasing complexity

Answer 9

reduced complexity-offering core benefits, not much else

Increasing complexity-more customer choice, widening features and offers

Question 10

3Ps- Physical evidence (4 ways to add value)

Answer 10

create physical evidence that increases loyalty
Use physical evidence that enhances the brand image eg. glossy docs
use physical evidence that has an intrinsic value of its own eg. pen sets/gift cards
create physical evidence that leads to further sales eg. reminder card sent out

Question 11

Service quality

Answer 11

defined as the ability of the organisation to meet or exceed customer expectations

Question 12

ServQual model 3 main aspects

Answer 12

word-of-mouth communications
personal needs of the consumer
past experience of the service, or of other similar services
3 factors conviene create an expectation before actually experiencing it

Question 13

ServQual- marketers factors

Answer 13

management of the consumers perception
existing perceptions of the consumers must be met or exceeded and the marketer needs to design the service quality accordingly
service delivery

Question 14

ServQual- gaps in understanding service quality

Answer 14

Gap 1- difference between actual customer expectations and management perception of customer expectation
Gap 2- difference between management perceptions of customer expectations and service quality specs
Gap 3- difference between service quality specs and the service that Is delivered
Gap 4- difference between customer expectations and perceptions of what is actually received

Question 15

Service- quality benchmarking

Answer 15

comparison is made with both competitors and non-competitors

Question 16

6 benefits to generating loyalty

Answer 16

increased purchases 
lower cost 
lifetime value of customer increases
sustainable competitive advantage 
word of mouth
employee satisfaction