test 1 Flashcards
service
set of deeds, processes, and performances that are time-perishable and are preformed for customers in exchange for money
quality
*inconsistent in definition
The standard of something as measured against other things of a similar kind
servicequality
no unanimous definition
base on customers needs, requirements, previous expereinces, demographics
service quality definition
• “Meeting a customers’ needs and requirements, and how well the service delivery meets customers’ perceptions and expectations”
when designing service quality
the needs an expectations of customers guide the design of quality strategies in service
5 critical factors of service quality
- core service (what service is being offered)
- human elements of delivery (reliability, responsiveness, empathy)
- systematization (processes, systems, technology)
- tangibles (machinery, equipment, uniforms, signage)
- social responsibility (corporate ctizenshipðical behavior)
why is service quality important?
significant impact of customer satisfaction
- sustainable competitive advantage
- strengthen a consumers relationship with org
evolution of services
- Early 1900’s: 3 out of 10 workers in US employed in service sector
- 1950: 50%
- Today: min. 80%
growth of service industry
- Agrarian / pre-industrial society
- Industrial society – production of goods
- Post Industrial society – services
- Experiences
experience design principles
*ways to engage customers:
•Theme the experience
•Harmonize impressions with positive cues (airport terminals)
•Eliminate negative cues (Cinemark talking trash cans)
•Mix in memorabilia (Hard Rock Café)
•Engage all five sense (mist in rainforest, Abercrombie & Fitch)
intangibility
• Most services are performances as opposed to objects (they cannot be seen, felt, tasted)
• Encounter at a specific time
• Unlike products, services cannot be:
o Inventoried
o Easily patented
o Sampled, tested, or evaluated before purchase
o Readily displayed
implications of intangibility
- Pricing is difficult
- Difficult to control
- Reputation is important
- Need to create tangibility and confidence
what do we do about intangibility?
- Advertising – increase the tangibility by showing pictures or iconic figures to create confidence and trust
- Establish brands – try to increase the tangibility by showing pictures or iconic figures to create confidence and trust
- Mechanisms to control or monitor quality
perishability
- Cannot inventory it
- Services cannot be returned or resold
- Cannot be adjusted in the short term
what do we do about perishability?
Try to match supply and demand
o Prediction and forecasting tools
o Additional facilities or services to offer
Carrying capacity
o Can impair employment (e.g. long lines)
Staff training for safety procedures, educational signs for codes of behavior, crowd control measures
o Excessive use may destroy / ruin the natural environment
Determine the environment carrying capacity
guestology
The scientific study of the behaviors, needs, and expectations of people in a service environment, and how to use that knowledge to optimally manage a service organization
guestology inverted triangle
• Services are tailored to meet guest’s current demands and those of future guests.
• Employees treat customers like guests
• Organization is managed from the guest’s point of view
-customers
-service providers
-managers
-CEO
demographic information
Age, geographic location, gender, income level, education level, marital or family status, occupation, ethnic background
flaws with only looking at demographics
Demographics can be a bit shallow – need to dig deeper
Psychographic information
• Personality, attitude, values, interests, hobbies, activities, lifestyle, behavior, opinions
why is psycho-graphic info important?
• Helps to understand how customers think and feel about a product or service
borrowing customers
customers are loyal to a company until another company offers the same product in a unique way
indifference
the lack of care or sympathy shown from an employee to a customer
zones of tolerance
expectations placed on a continuum
adequate = what is found acceptable
desired = what they hope to receive
range in zones of tolerance
A performance below this tolerance zone will cause customer frustration and decrease customer loyalty.
A performance level surpassing this tolerance zone will pleasantly surprise customers and strengthen their loyalty
customers with narrow zones of tolerance
highly sensitive to the service experience, with a greater likelihood of dissatisfying or delighting outcomes.
customer with wide zone of tolerance
much less sensitive to the service experience, thus increasing the likelihood of a satisfactory or acceptable outcome.
ALL customers need a few _______ things
similar
four basic guest needs
- to be understood
- to feel welcome
- comfort
- to feel important
understanding customer needs
- Variety of customer types
- Leisure patron vs business patron
- May differ depending on the purpose of the visit, demographics, etc
- Complicated: Sometimes coincide, sometimes differ
why is understanding customer needs important?
- assists with satisfaction
- people are seeking particular benefits
- helps us understand why ppl feel that they need these products
3 categories of service based on level of interaction
- maintenance interactive
- task interactive
- personal interactive (*greatest risk in transactions)
components of service package
- supporting facility (physical resources in place before a service is sold
- facilitating goods ( materials consumed)
- information (data/info to customize service)
- explicit services (benefits readily observable by the senses)
Implicit Services
psychological benefits or extrinsic features which maybe sensed only vaguely
Core and Peripheral Services
• Core service: the major benefit that the consumer is seeking (ex: clean, properly equipped room)
• Peripheral Service: additional things added as a bonus. Adds value to the core service
Satisfaction mainly comes from the peripheral service that surrounds the core service
Garvin’s Five Principal Approaches to Defining Quality:
- transcendental view of quality
- product based
- user based
- value based
