Trends & Opportunities, Service Characteristics Affect Marketing Strategy + TB Chapter 1

Question 1

Blips

Answer 1

Impacting you immediately in the short-
term but soon levelling out

Question 2

Shifts

Answer 2

Cultural or wide-scale consumer changes
with lasting effects

Question 3

Factors stimulating transformation of the service economy

Answer 3

Government policies
Social changes
Business trends
Advances in tech
Globalization

Question 4

Service encounter

Answer 4

Any discrete interaction between customer and
service provider relevant to a core service
offering, including the interaction involving
provision of the core service offering itself

eg: hostess greeting you at a restaurant

Question 5

Service experience

Answer 5

Any period during which all service encounters
relevant to a core service offering may occur

eg: restaurant experience (includes all encounters such as hostess greeting, coat check, food service, etc)

Question 6

Conceptual model of service encounters in a service experience

Answer 6

Pre-core service encounters
(communications, info search, initial contact, etc)
Core service encounter
(core interactions, environment)
Post-core service encounter
(Service recovery effects, customer feedback, reviews, etc)

Question 7

Rent in services marketing

Answer 7

Describes payment made for the temporary use of something, or for access to skills and expertise, facilities, or networks

Question 8

Five broad categories in the non-ownership framework of services

Answer 8

Labour, skill, and expertise rentals
Rented goods services
Defined space and facility rentals
Access to shared facilities
Access to and use of networks and systems

Question 9

Labor, skills, and expertise rentals

Answer 9

Other people are hired to perform work that customers either cannot or choose not to do themselves
eg: car repair, medical checkup

Question 10

Rented goods services

Answer 10

These services allow customers to obtain the exclusive temporary right to use a physical object that they prefer not to own
eg: boats, expensive suits for one occasion

Question 11

Defined space and facility rentals

Answer 11

This is when customers obtain the use of a certain portion of a larger facility such as a building, vehicle, or area. They usually share this facility with other customers
eg: a seat in an aircraft, a booth at a club

Question 12

Access to shared facilities

Answer 12

Customers rent the right to share the use of a facility. Such facilities may be a combination of indoors, outdoors, and virtual
eg: theme parks, golf clubs

Question 13

Access to and use of networks and systems

Answer 13

Customers rent the right to participate
in a specified network. Service providers offer a variety of terms for access and use, depending on the needs of customers
eg: telecommunications, banking, video game social networks

Question 14

Services

Answer 14

Economic activities offered by one party to another

Question 15

Four broad categories of services

Answer 15

People processing
Possession processing
Mental stimulus processing
Information processing

Question 16

People processing

Answer 16

Customers must physically enter the service factory and cooperate actively with service operations
eg: visiting the doctor

Question 17

Possession processing

Answer 17

Customers are less involved in possession processing, and in some cases this service can be described as separable. However, customers may prefer to be present during service delivery (supervise removal of a tree, dog getting a shot)
eg: sending a car to a repair shop

Question 18

Mental stimulus processing

Answer 18

Customers are required to invest some time and
mental effort to obtain the full benefit of such services. However, they don’t necessarily have to be physically present in a service factory
eg: education, news and information, professional advice, religious activities

Question 19

Information processing

Answer 19

Information can be processed by information and communications technology (often
referred to as ICT), or by professionals. Most intangible form of service output, but can be transformed into tangibles such as letters, reports, etc
eg: accounting, medical diagnosis, marketing research

Question 20

Differences of services

Answer 20

Most service products can’t be inventoried
Intangible elements dominate value creation
Services often difficult to visualize & understand
Customers may be involved in co-production
Operational inputs & outputs vary widely

Question 21

Implications of services

Answer 21

Harder to evaluate & distinguish services from competitors
Greater risk & uncertainty perceived
Hard to maintain quality, consistency, reliability
Time and availability is very important

Question 22

Marketing-related tasks of services

Answer 22

Emphasize physical clues, employ metaphors & vivid images in ads
Shape customer behaviour
Develop user-friendly equipment, facilities & systems
Redesign for simplicity and failure proofing
Find ways to compete on speed of delivery

Question 23

7 Ps in the extended marketing mix

Answer 23

Product elements
Place and time
Price and other user outlays
Promotion and education
Process
Physical environment/evidence
People

Question 24

Product elements

Answer 24

Offer value to target customers and satisfy their needs better than competing alternatives
(how far can the product be customized?)

Question 25

Place and time

Answer 25

Companies have to determine where and
when they can deliver service elements to
customers and methods and channels to
use
eg: ATMs, telephone, online banking, apps

Question 26

Promotion & Education

Answer 26

Provide the necessary information and advice
Persuade target consumers to purchase the offering
Encourage them to take action at specific times

Question 27

Price

Answer 27

Pricing strategy of firms directly affects income generated

Question 28

Process

Answer 28

Design and implement effective processes for the creation and delivery of services
Customers are often actively involved in processes, especially as co-producers of services

Question 29

Physical environment

Answer 29

Create and maintain appearance of the “servicescape”. Buildings, landscaping, vehicles, interior furnishing, equipment, uniforms, and other visible cues provide tangible evidence of a firm’s service quality

Question 30

People

Answer 30

Service firms need to work closely with their HR departments and devote special care to the selection, training, and motivation of their service employees. Also teach necessary skills

Question 31

The interdependence between business functions

Answer 31

Operations management
HR management
Marketing management

The three functions play central and related roles in meeting the needs of service customers

Question 32

Service profit chain

Answer 32

Conceptual framework that shows how marketing, OM, and HR are integrated in high-performance service organizations

Question 33

Marketing function

Answer 33

Target the right customers and build relationships
Offer solutions that meet their needs
Define quality package with competitive advantage

Question 34

Operations function

Answer 34

Create, deliver specified service to target customers
Adhere to consistent quality standards
Achieve high productivity to ensure acceptable costs

Question 35

HR function

Answer 35

Recruit and retain the best employees for each job
Train and motivate them to work well together
Achieve both productivity & customer satisfaction