Test 1 (ch1-5) Flashcards
Derived service define
Value from a physical good, provides a service
Ex: razor gives the service of a Barbour
Why service marketing?
Service based economy
Deregulated industries
Service equals profits
Firms that use a service focus
Xerox, petsmart, p&g, IBM
How is service marketing different?
More variability
Customer interface
Difficulty pricing
Service technology– importance on service delivery
New ways to deliver service
Enables customers
Extends global reach
Issues of service technology
Isolated people
Concerns about privacy
Substitute for human labor
Uncertain payback
Characteristics of services
Intangible
Heterogenous
Simultaneous production/ consumption
Perishable
Search qualities
Can be determined before purchase(color, style, price)
Experience qualities
Determined during/ after consumption (vacations)
Credence qualities
Impossible to evaluate
Service marketing mix (7Ps)
Product Place Promotion Price People Process Physical evidence
What’re the provider gaps?
Listening
Service design and standards
Service performance gap
Communication
Gap (1)
Listening gap
Not know what customers expect
Bad research, lack of upward communication, not relationship focused, no service recovery
Gap (2)
Service design and standards gap
Not having the right service designs
Poor service design, absence of customer driven standards, bad physical evidence/ servicescape
Gap (3)
Service performance gap
Not delivering to service standards
Deficiencies in HR polices, customer not fulfilling roles, problems with service intermediaries, failure to match supply/ demand
Gap (4)
Communication gap
Not matching performance to promises
Lack of IMC, bad management of customer expectations, over promising, bad pricing
What is desired service influenced by?
Personal needs
Personal service philosophy
Derived service expectations(influenced by groups)
What is adequate service influenced by
Alternatives
Predicted services
Situational factors
Desired and predicted service expectations
Explicit service promises
Implicit service promises
WOM communication
Past experience
What basics to service customers want?
Competency Explanations Respect Hygiene Flexibility Urgency Consistency Hassle free Promptness Fairness Empathy
How do you exceed customer expectations?
Honor promises Develop relationships Personalized attention Underpromise Be unique
Service quality is a perception of
Reliability Assurance Responsiveness Empathy Tangibles
Satisfaction influenced by
Influences by service quality, product quality, price, situational, and personal factors
Customer satisfaction definition
Customer evaluation of a service in terms of whether that product has met their needs
Attitudes of satisfaction
Fulfillment Pleasure Relief Contentment Delight Ambivalence
What determines satisfaction?
Product features Emotions Attributions for service success/ failure Fairness Other customers, family members
Outcomes of satisfaction
Customer loyalty
Return to shareholders
Dimensions of service quality
Reliability Responsiveness Assurance Empathy Tangibles
What are moments of truth
All service encounters
Service quality is influenced by what?
Timing, frequency, proximity of negative encounters relative to delightful service encounters
Types of service encounters
Remote encounters
Technology mediated encounters
Face to face encounters
Sources of pleasure/displeasure encounters
Recovery
Adaptability
Spontaneity
Coping
Why is research important
Important in understanding customer expectations, and perceptions of services
Types of research
Complaint solicitation Critical incident studies Requirements research SERVQUAL surveys Postransaction surveys Service expectation meetings Process checkpoint Market oriented ethnography Mystery shopping Customer panels Lost customer research Future expectations
Advertising pyramid
Awareness Comprehension Conviction Desire Action
The pyramid works in three dimensions
Time, dollars, and people
The advertising strategy and sub categories
Describes how to get here
Creative strategy
Media strategy
What does the creative strategy do?
Defines the target audience
Restates the objectives
Specifies key benefits
Offer support
