Marketing 400 – Flashcards

Intangible activities or benefits that an organization provides to satisfy consumers' needs in exchange for money or something else of value. are intangible activities or benefits (such as airline trips, financial advice, or automobile repair) that an organization provides to satisfy consumers' needs in exchange for money or something else of value.

Services are intangible; that is, they can't be held, touched, or seen before the purchase decision

Occurs when the service provider is available but there is no demand., which is when the service provider is available but there is no demand.

What companies bring to the market ranges from the tangible to the intangible or good-dominant to service-dominant offerings

they are delivered by people or equipment, (2) they are profit or nonprofit, or (3) they are government sponsored.

intangibility, inconsistency, inseparability, and inventory

A type of analysis that compares the differences between the consumer's expectations about and experiences with a service based on dimensions of service quality..

A flowchart of the points of interaction between consumers and a service provider.

roduct, price, place, and promotion

An expanded marketing mix for services that includes the four Ps (product, price, promotion, and place or distribution) as well as people, physical environment, process, and productivity

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Charging different prices during different times of the day or days of the week to reflect variations in demand for the service., which consists of charging different prices during different times of the day or during different days of the week to reflect variations in demand for the service

Place or distribution is a major factor in developing a service marketing strategy because of the inseparability of services from the producer.

The value of promotion, especially advertising, for many services is to show consumers the benefits of purchasing the service.

public information about a company, product, service, or issue appearing in the mass media as a news item

a message created to educate people about an issue

The notion that a service organization must focus on its employees, or internal market, before successful programs can be directed at customers. is based on the notion that a service organization must focus on its employees, or internal market, before successful programs can be directed at customers.

The process of managing the entire customer experience within the firm. is the process of managing the entire customer experience with the company. CEM experts suggest that the process should be intentional and planned, consistent so that every experience is similar, differentiated from other service offerings, and relevant and valuable to the target market.

The appearance of the environment in which the service is delivered and where the firm and customer interact can influence the customer's perception of the service.

Process refers to the actual procedures, mechanisms, and flow of activities by which the service is created and delivered.

Integrating the service component of the marketing mix with efforts to influence consumer demand..

The four unique elements of services—the four I's—are intangibility, inconsistency, inseparability, and inventory. Intangibility refers to the tendency of services to be a performance that cannot be held or touched, rather than an object. Inconsistency is a characteristic of services because they depend on people to deliver them, and people vary in their capabilities and in their day-to-day performance. Inseparability refers to the difficulty of separating the deliverer of the service (hair stylist) from the service itself (hair salon). Inventory refers to the need to have service production capability when there is service demand.

Services differ in terms of the balance of the part of the offering that is based on goods and the part of the offering that is based on service. Services can be delivered by people or equipment, they can be provided by profit or nonprofit organizations, and they can be government sponsored.

Because services are intangible, prepurchase evaluation is difficult for consumers. To choose a service, consumers use search, experience, and credence qualities to evaluate the good and service elements of an offering. Once a consumer tries a service, it is evaluated by comparing expectations with the actual experience on five dimensions of quality—reliability, tangibles, responsiveness, assurance, and empathy. Differences between expectations and experience are identified through gap analysis.

A customer contact audit is a flowchart of the points of interaction between a consumer and a service provider. The interactions identified in a customer contact audit often serve as the basis for developing relationships with customers.

The services marketing mix includes eight Ps. An important aspect of the product element is branding—the use of a brand name or logo to help consumers identify a service. Pricing is reflected in charges, fees, fares, and rates and can be used to influence perceptions of the quality of a service and to balance demand for services. Place (or distribution) is used to provide access and convenience. Promotional tools such as advertising and publicity are a means of communicating the benefits of a service. People are responsible for the creation and delivery of the service. Internal marketing and customer experience management are concepts that result from a focus on people within the service organization and their interactions with customers. Physical environment refers to the appearance of the place where the services are delivered. Process refers to the actual procedures, mechanisms, and activities by which a service is created and delivered. Productivity is related to the inseparability of the service from the service provider and is influenced by capacity management.

Because the employee plays a central role in creating the service experience, and in building and maintaining relationships with customers, services have adopted a concept called internal marketing. This concept suggests that services need to ensure that employees (the internal market) have the attitude, skills, and commitment needed to meet customer expectations. Customer experience management is the process of managing the entire customer experience with the company to ensure customer loyalty.