Test 1 Flashcards
What are services?
services are deeds, processes, and performances provided by a single person or group of people with or for another group or entity
Tangibility Spectrum
The spectrum that shows how tangible or intangible a certain service is. (Teaching is very intangible. Salt is a tangible service)
What are the four characteristics of services?
Intangibility, heterogeneity, Perishability, Simulationous production and consumption
Implications of Intangibility?
Services cannot be inventoried or easily patented. They also cannot be displayed or communicated. In addition, pricing can be difficult
Implications of simulationous production and consumption
Customers participate in and affect the outcome depending on how much effort they put into it. (having a personal trainer or being in a class).
Mass production is difficult
Implications of heterogeneity
Service delivery and customer satisfaction depend on employee and customer actions. The quality depends on uncontrollable factors. There is no way to know if the service is going to meet expectations of what the customer is anticipating
Implications of perishability
Services cannot be returned or resold. It is difficult to sycnronize supply and demand
What is the customer gap? `
The difference between perceived and expected service
provider gap 1
not knowing what customers expect (not listening)
provider gap 2
not having the right service designs and standards
provider gap 3
not delivering to service standards
provider gap 4?
not matching performance to promises
key factors leading to provider gap 1
insufficient customer research, Lack of upward communication, Focusing on transactions rather than relationships, bad response to complaints
key factors leading to provider gap 2
Poor service design, absence of customer driven standards, Inappropriate physical evidence and servicescacpe
key factors leading to provider gap 3
Ineffective recruitment for the job, Customers lacking knowledge of their roles and responsibilities, Problems controlling quality and consistency, Failure to match supply and demand.