Services: The Intangible Product - Chapter 10 Flashcards
What are the 4 I’s
- Intangible
- Inseparable
- Inconsistent (variable)
- Inventory (perishable)
Intangible
They can’t be touched, tasted, or seen like a pure product can
Inseparable
Produced and consumed at the same time - service and consumption are inseparable
Inconsistent
Its quality may vary bc it is provided by humans
Knowledge gap
The diff between customers’ expectations and the firm’s perception of those customer expectations
Standards gap
Diff between the firm’s perceptions of customers’ expectations and the service standards it sets
Delivery gap
Diff between the firm’s service standards and the actual service it provides to customers
Communication gap
Diff between the actual service provided to customers and the service that the firms promotion program promises
How do you reduce the knowledge gap?
firms must understand the customers’ expectations
To understand the expectations, firms do customer research & increase interaction and communication between managers and employees
What are the 5 dimensions to determine service quality
- Reliability
- Responsiveness
- Assurance
- Empathy
- Tangibles
Voice of customer (VOC) program
An ongoing marketing researching system that collects customer insights and intelligence to influence and drive business decisions
Zone of tolerance
The difference between what the customer rlly wants and what they will accept before going elsewhere
Empowerment
Allowing employees to make decisions act how service is provided to customers
What does poor communication result in between marketers/customers
Can result in a mismatch between an ad campaign’s or a salesperson’s promises and the service the firm can actually offer
What does effective service recovery entail?
- listening to the customer
- providing a fair solution
- resolving the problem quickly
