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Why is healthcare service marketing different ?

answer

1. Face serious competition 2. Multipurpose service delivery entities 3. Charitable orientation 4. Large amount of government support 5. Referral relationships drive revenue 6. Third party payers exhibit strong influence over HCO

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Why are the healthcare professionals different?

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1. Clinicians drive demand and are directly or indirectly responsible for expenditures 2. May not share the same goals or incentives 3. Behaviors may be driven by medical ethics Provider and administrator goals are often incongruent

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Why are healthcare products different?

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1. Products require and intermediary prescription before being consumed 2. Service bundling 3. Difficult to measure services and products 4. Lack of substitution for product/service

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Why are healthcare consumers different?

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1. Eventually everyone will need healthcare 2. Healthy people are potential consumers for us too 3. Paying customers are not always those in immediate need 4. May not need services may want them 5. Consumers are often insulated from actual price 6. Resource limitations are often not utilized, cost is often not a consideration, price is ineffective at enticing a consumer 7. Few consumers know how the system operates 8. No objective way to measure quality of service 9. Emotional component of the service

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4 Characteristics of services verses goods

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1. Intangibility 2. Heterogeneity 3. Perishability 4. Simultaneous production and consumption

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Intangible

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Services cannot be: 1. Inventoried 2. Patented 3. Displayed or communicated 4. Pricing is difficult

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Heterogeneous

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1. Service delivery and customer satisfaction depend on employee and customer actions. 2.Service quality depends on many uncontrollable factors 3. NO sure sign that serve delivered is what was planned and promoted

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Simultaneous production and consumption

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1. Customers participate in and affect the transaction 2. Customers affect each other 3. Employees affect the outcome 4. Decentralization may be essential 5. Mass production is difficult

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Perishable

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1. Difficult to synchronize supply and demand 2. Services cannot be returned or resold

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Traditional Marketing Mix (4 Ps)

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Price, Product, Promotion, Place The elements an organization controls that can be used to satisfy or communicate with customers

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Expanded Mix (7ps)

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People, Physical Evidence, and Process

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Expanded Mix # 1: People

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Any human actor who plays a part in service delivery and thus influence the buyers perceptions; firm personnel, customers, surrounding customers

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Expanded Mix # 2: Physical Evidence

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Environment in which service is being delivered and where the firm and customer interact and any tangible components that facilitate performance or communication of service

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Expanded Mix # 3: Process

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The actual procedure, mechanisms, and flow of activities, by which the service is delivered - the service delivery and operating systems

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Gap Model Of Service Quality

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The Customer Gap 1. Provider Gap One: The Listening Gap 2. Provider Gap Two: Services Design and Standards Gap 3. Provider Gap 3: Service Performance Gap 4. Provider Gap 4: Communication Gap

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Customer Gap

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Differences between customer expectations and perceptions

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Provider Gap 1: Listening Gap

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not knowing what the customer expects

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Provider Gap 2: Service Design and Standards Gap

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not having the right service designs and standards

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Provider Gap 3: Service Performance Gap

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not delivering to service standards

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Provider Gap 4: Communication Gap

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not matching performance to promises

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Key Factors Leading to Provider GAP 1

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1. Inadequate customer research orientation 2. Lack of upward communication 3. Insufficient relationship focus 4. Inadequate service recovery

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Key Factors Leading to Providers Gap 2

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1., Poor service design 2. Absence of customer driven standards 3. Inappropriate physical evidence and servicescape

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Key Factors Leading to Providers Gap 3

answer

1. Deficiencies in HR policies 2. Failure to match Supply and demand 3. Customers not fulfilling roles 4. Problems with service intermediaries

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Key Factors Leading to Providers Gap 4

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1. Lack of integrated marketing service communication 2. Ineffective management of customers expectations 3.Overpromising 4. Inadequate horizontal communicating 5. Inappropriate pricing

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Desired Service

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the level of service the customer hopes to receive ; "wished for" or what " can be" or "should be" - more stable

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adequate service

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the minimal level of service the customer will accept - more dynamic

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The zone of tolerance

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the extent to which customers recognize (and are willing to accept) such variance in service delivery. Seen as the gap between the desired and adequate service; varies by individual and product or service type

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Factors influencing desired service

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1. Personal needs 2. Personal Service Philosophy 3. Derived Service Expectations

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Personal Needs

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-States/conditions essentials to the physical or psychological well-being of the customer -pivotal factors that shape what customers desire in service - "maslows hierarchy of needs"

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Personal Service Philosophy

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-underlying generic attitude about the meaning of service and the proper conduct pf service providers -Leineck's wife as a waitress and how she treats servers who are terrible servers now

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Desired Service Expectations

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Influence desired service expectations when customers expectations are driven by another person or group by another person or group of people (outside influence or bias.)

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Factors influencing adequate service

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-perceived service alternative -Situational Factors -Predicted Service

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perceived service alternative

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-Other service providers -"evoked set" of alternatives

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Situational Factors

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Uncontrollable situational factors -performance conditions out of the providers control as perceived by the customer (storms) Personal Situational Factors -Short term, individual factors that make a customer more aware of the need for the service

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Predicted Service

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-Level of service the customer believe they are likely to get

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Sources of desired and predicted expectations

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1. Explicit service promises: Personal/non-personal statements about the service made by the organization to customer 2. Implicit Promises: Service-related cues, other than explicit promises, that lead to inferences about what the services should and will be like...word of mouth 3. Past Experiences

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external customers

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outside organizations, business customers, suppliers, partners, end customers

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internal customers

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inside org, other departments, fellow employees

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transaction perception

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what happened in present service encounter

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cumulative perception

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often drives overall loyalty - deals with loyalty

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Factors influencing customer satisfaction

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-products and service features -consumer emotions attributions for services success/failure -perceptions of equity/fairness -other customer, family members or coworkers

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Outcomes of customer satisfactions

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-increased customer retention (loyalty) -increased revenues -Positive word of mouth

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5 dimensions of service quality

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Reliability Assurance Tangibles Responsiveness Empathy

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Reliability

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ability to perform the promised service dependably and accurately

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assurance

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knowledge and courtesy of employees and their ability to inspire trust and confidence

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tangibles

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physical facilities, equipment and appearance of personnel

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Empathy

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Caring, individualized attention the firm provides its customers

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Responsiveness

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Willingness to help customers and provide prompt service

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Common themes in critical service research

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Recovery, adaptability, spontaneity, coping

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Recovery

answer

employee response to service delivery system failure

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coping

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employee response to problem customers

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spontaneity

answer

unprompted and unsolicited employee actions and attitudes

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adaptability

answer

employee response to customer needs and requests

Marketing Midterm (Services Marketing 6th Edition) ch 1-4 Terms – Flashcards

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