test 4 Flashcards

1
Q

Services marketing triangle communication activities (3)

A

Internal Marketing Communications
Interactive Marketing
External Marketing Communications

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2
Q

Internal Marketing

A

Vertical/Horizontal communications within the business

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3
Q

Interactive Marketing

A

Involves personal selling, Service encounters, social media, servicescapes

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4
Q

External Marketing Communicaitons

A

Involves advertising, sales promotion, public relations

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5
Q

Five approaching to overcoming service communication channels

A
  1. Address service intangibility
  2. Manage service promises
  3. Manage customer expectations
  4. Manage customer education
  5. Manage internal marketing communications
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6
Q

How to manage service intangibility

A

x

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7
Q

How to manage customer expectations

A

Make realistic promises
Offer service guarantees
Offer choices
Create tiered value service offerings (car companies)
Communicate the criteria and levels of service effectiveness

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8
Q

How to manage service promises

A
  1. Create a strong service brand

2. Coordinate external communication

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9
Q

Managing customer education

A
  1. Prepare customers for the service process
  2. Confirm performance to standards and expectations
  3. Clarify expectations after the sale
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10
Q

Managing internal marketing communcations

A

Promote the brand inside the company
Create effective upward communication
Create cross functional teams
Create effective vertical/horizontal communications

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11
Q

Best ways to close communication gap

A
  1. Employing integrated service marketing communication strategies around everything and everyone that sends a message or signal.
  2. Manage customer expectations effectively throughout the experience.
  3. Make sure to avoid over-promising and ensure successful delivery.
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12
Q

Strategies for managing customer expectations?

A
  1. Make realistic promises
  2. Offer service guarantees
  3. Offer choices
  4. Teired value service offerings (Cars offering better features for more money) j8u
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13
Q

Why do customers often lack knowledge of service prices?

A
  1. Service variability
  2. Providers unwilling to provide prices
  3. Individual customer needs vary
  4. Collection of price information by customers is difficult
  5. Prices are not visible
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14
Q

What are four nonmonetary costs involved in pricing

A

Time costs, Search costs, Convivence costs, psychological costs

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15
Q

Role between price and service quality?

A

The higher the price, the higher quality that is inferred

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16
Q

What are three basic marketing price structures?

A

Competition based, Cost based, demand based

17
Q

cost based price structures and challenges

A

Widely used by contracting, wholesaling, and advertising firms. Direct costs + overhead costs + Profit margin is how they arrive at price.

Challenges: 350 suit jacket and 20 dollar pants are both $10 because both jobs require the same amount of time. This does not make sense to a consumer who may even be happy if the cost wasn’t 10 and was instead 30

18
Q

How do consumers define value?

A

Mental tradeoff of perceived quality and perceptions of sacrifice

19
Q

What are the four customer definitions of value?

A
  1. Value is low price
  2. Value is everything I want in a product or service
  3. Value is the quality I get for the price I pay
  4. Value is what I get for what I give
20
Q

Relationship between service quality and profitability?

A

Commitment to quality service increases profitability

21
Q

ACSI scores for service industries? other industries?

A

Average for all industries - 74.4

Service industries - mid to low 60s

22
Q

Reasons customer satisfaction has declined?

A

Increasing use of self service
Complexity of self use services
Cost cutting leads to understaffed services
quality service isn’t easy
-Talented people get promoted and less talented are frontline workers
Promises of quality service, but workers aren’t paid what they deserve

23
Q

What are the positive effects of offensive marketing?

A

Higher market share, reputation and charging price premiums. (need to have a very good service for this to work)

24
Q

What is defensive marketing?

A

Keeping customers that a firm already has

25
Q

Competition based pricing and challenges

A

This focuses on the prices charged by other firms in the same industry. (Dry cleaning, rental cars)

Challenges: Some smaller firms cannot charge the same as bigger services and stay in business. Prices may not reflect customer value either.

26
Q

Demand based pricing and challenges

A

This involves setting prices based on what customers will pay for the services (willing to pay however much for a surgery if a loved one needs it)

Challenges: 1. Monetary prices must be adjusted to reflect value of nonmonetary prices
2. Information on service costs is less available to customers so price may not be a central factor

27
Q

“Value is low price” pricing strategy

A

Discounting,
Odd pricing (charging just below exact dollar amount 19.99, 10.98, etc)
Synchro-pricing
Penetration pricing (new services introduced at low price)

28
Q

“Value is everything I want in a service” pricing strategy

A
Prestige pricing (high quality or status services) 
Skimming (introducing new service at high prices)
29
Q

“Value is the quality I get for the price I pay” pricing strategy

A
Value Pricing (giving more for less) (southwest airlines)
Market Segmentation pricing (A service market charges different prices to groups of customers for what are perceived to be different levels of service)