WEEK 5 Flashcards
Characteristics of Services
-intangibility
-inseperability
-variability
-perishability
which cannot be seen, tasted, felt, heard, or smelled before they are bought. The strategy for making the service offering more tangible is to try to draw the buyer’s attention to tangible features like place, people, price, equipment or communications that they see.
Intangibility
which are produced and consumed at the same time and cannot be separated from their providers, whether the providers are people or machines. Both the provider and the consumer affect the service outcome.
Inseparability
whose quality may vary greatly depending on who provides them and when, where, and how.
Variability
which cannot be stored for later sale or use. Service perishability is not a problem when demand is steady. It is, however, when demand fluctuates.
Perishability
Since the customer and the service provider ______ to provide the service, the interaction must be ___________. Successful service companies focus their attention on both their _________.
interact; controlled and constantly improved; customer and their employees.
Service profit chain
Chain
1. Internal service quality
2. Satisfied and productive service employees
3. Greater service value
4. Satisfied and loyal customer
5. Healthy and service profit growth
It is a marketing by a service firm to train and effectively motivate its customer-contact employees and all the supporting service people to work as a team to provide customer satisfaction.
Internal marketing
- For the firm to deliver consistently high service quality, marketers must get everyone in the organization to practice a ________.
- Internal marketing must precede ______.
customer orientation; external marketing
It is marketing by a service firm that recognizes that perceived service quality depends heavily on the quality of buyer-seller interaction. The marketer cannot assume that they will satisfy the customer simply by providing good technical service.
Interactive Marketing
3 major marketing tasks
- Competitive differentiation
- Service quality
- Service productivity
This can occur by differentiating the offer, the delivery, and their images.
Competitive differentiation
By consistently delivering higher quality than the competition, the firm can make progress in customer retention.
Service quality
Increase productivity by training employees better. Work on quality as well as quantity of service. Use technology to help. Firms must watch pushing productivity at the expense of service quality.
Service productivity
To have a good service system, the organization must:
a. empower front-line employees
b. be customer obsessed
c. set high service quality standards
d. watch service performance closely