Theories

Question 1

The Service Consumer Decision Making Process

Answer 1

slide 39
Pre-purchasing/ pre-encounter
1.need recognition
->2. information search
->3. evaluation of service alternatives
Service encounter
->4. service purchase     -> service co-creation
->5. service experience  
Post-encounter
->6. Post-experience evaluation

Question 2

Explain the (3) Consumer Evaluation of Processes for Services

Answer 2

● Search qualities: attributes a consumer can determine prior to purchase of a product
-> Style, color, texture, taste, sound

● Experience qualities: attributes a consumer can determine after purchase (or during consumption) of a product
-> Vacations, sporting events, medical procedures

● Credence qualities: characteristics that may be impossible to evaluate even after purchase/consumption
-> Heart surgery

Question 3

What are the (7) Perceived Risks in Purchasing and Using Services?

Answer 3

1. Physical: personal injury, damage to possessions
2. Functional: unsatisfactory performance outcomes
3. Financial: monetary loss, unexpected extra costs
4. Temporal: wasted time, delays leading to problems
5. Psychological: fears and negative emotions
6. Social: how others may think and react
7. Sensory: unwanted impact on any of five senses

Question 4

What are the (3) Strategies to Reduce Perception of Risk?

Answer 4

1. Warranties/guarantees to protect against fears of monetary loss
2. Offer previews, free trials (provides experience) and Advertising (helps to visualize) to reduce sensory risks
3. Websites offering FAQs and more detailed background. Train staff members to be respectful and empathetic to reduce physical or psychological risks.

Question 5

what are the 7 Ways for Consumers to HANDLE Perceived Risk?

Answer 5

1. Seeking information from respected personal sources
2. Relying on a firm that has a good reputation
3. Looking for guarantees and warranties
4. Visiting service facilities or trying aspects of service before purchasing
5. Asking knowledgeable employees about competing services
6. Examining tangible cues or other physical evidence
7. Using the Internet to compare service offerings and search for independent reviews and ratings

Question 6

Service Profit Chain (Bruhn 2012)

Answer 6

Mental map, slide 48

1. service quality
2. customer satisfaction
3. customer loyalty
4. Economic Performance

External Moderators
1. Variant customer expectations, dynamic and complexity in the market

2. Vareity-seeking-motives, Image, Alternatives, comfort-seeking
3. Value of the customer, willingness to pay, customer expectations

Internal Moderators
1. service customization, service complexity, diverse service offerings.

2. Barriers to change, Contracts, Tie In
3. Customer Database, staff turnover, pricing restrictions, width of services offered

Question 7

Service Profit Chain (Heskett et al. 1994)

Answer 7

Mental map, slide 47

operating strategy and service delivery system

1. Internal service Quality: Workplace design, job design, employee awards and recognition, employee selection and development
   - > 2. employee satisfaction: -:> employee retention and employee productivity
   - > 3. external service value: service concept: results for customers
   - >4. customer satisfaction: services design and delivered to meet targeted customer needs
   - >5 customer loyalty: retention, repeat business and referral
   
   • > 5.1 Revenue Growth —–> 1. internatl service Quality
   • > 5.2 Profitability

Question 8

What is the main idea of Service Dominant Logic?

Answer 8

S-D-L argues that:

1. Services and products are linked with each other
2. Economic developments can be explained better by a service-focusing perspective.

Question 9

Explain the (8) Service Dominant Logic Terms

Answer 9

1. Service: an act of doing something for someone else‘s benefit
2. Product: Products help to distribute the service
3. Operand ressources: Tangible ressources, static, must combined with operant ressources to create value
4. Operant ressources: Intagible ressources, dynamic, create value, can be combined with other operant or operand ressources

Value-in-exchange vs. Value-in-use:
5. Value-in-exchange is the economic/financial value OF AN exchanged product or service

        6. Value-in-use is the created value for the customer USING a product or service

Coproduction & cocreation:

     7. Coproduction means the customer *produces* a service or product, it is optional.
     8. Cocreation means the customer *creates value* using a service or a product, it is mandatory

Question 10

What is the difference between Co-creation and Co-production?

Answer 10

Coproduction means the customer produces a service or product, it is relatively optional. (e.g., making the ikea shelve)

Cocreation means the customer creates value using a service or a product, it is mandatory. (e.g, shelves with my books) -> Value is always cocreated

Question 11

What are the (4) Implications for Services Marketing of the SDL?

Answer 11

1. IDENTIFYING OPPORTUNITIES to coproduce and cocreate (e.g., IKEA)
   - Which competencies has our customer, how can they be used to coproduce or how can we develop them?
   - How strongly motivated is our customer to coproduce?
   - Can we integrate other partners in coproduction?
   - What is the «value-in-use» for our customers?
2. Dialogue with customers (e.g., tripadvisor ratings and reviews)
   - Conversation with all parties integrated in our service delivery processes
   - In the service network communication should not be dominated by one actor
3. VALUE CREATION is a customer-specific process
   - Value creation can not be defined only based on prices or margins
   - Value creation means understanding the situation of an individual customer, which defines the contex of value creation
4. INTEGRATING LEARNIG as a step in value creation processes (e.g., Airbnb)
   - Our achievements show how good we have learned from our customers and cooperation in the market.