Services marketing definitions for ch1-13 – Flashcards
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People processing service
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services that involve tangible actions to people's bodies
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Possession processing service
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tangible actions to goods and other physical possessions belonging to customers
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Mental stimulus processing service
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intangible actions directed at people's minds
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Information processing service
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intangible actions directed at customers' assets
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Evoked set
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a set of products and brands that a consumer considers during the decision-making process - that is derived from past experiences or external sources
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Search attributes
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product characteristics that consumers can readily evaluate prior to purchase
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Experience attributes
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product performance features that customers can evaluate only during service delivery
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Credence attributes
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product characteristics that customers may not be able to evaluate even after purchase and consumption
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Moment of truth
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a point in service delivery where customers interact with service employees or self-service equipment and the outcome may affect perceptions of service quality
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High-contact services
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services that involve significant interaction among customers, service personnel, and equipment and facilities
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Low-contact services
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services that require minimal or no direct contact between customers and the service organization
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Servuction system
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describes that part of the service organization's physical environment that is visible to and experienced by customers
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Theater metaphor
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good metaphor as service delivery is a series of events that customers experience as a performance
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Zone of tolerance
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the range within which customers are willing to accept variations in service delivery
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Focus
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the provision of a relatively narrow product mix for a particular market segment
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Service focus
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the extent to which a firm offers few or many services
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Unfocused
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service providers try to serve broad markets and provide a wide range of services
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Fully focused
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provides a limited range of services (perhaps just a single core product) to a narrow and specific market segment
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Market segment
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composed of a group of buyers who share common characteristics, needs, purchasing behavior, or consumption patterns.
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Target segment
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one that a firm has selected from among those in the broader market and may be defined on the basis of several variables
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Positioning
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establishing a distinctive place in the minds of customers relative to competing products
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Market analysis
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focuses on overall level and trend of demand and geographic locations of demand
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Positioning map
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great tool to visualize competitive positioning and map developments of time. Useful way to represent consumer perceptions of alternative products graphically.
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Core service
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central component that supplies the principal problem-solving benefits customers seek
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Supplementary service
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augments the core product, facilitating its use and enhancing its value and appeal
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Flower of service
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a visual framework for understanding the supplementary service elements that surround and add value to the product core
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Facilitating service
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supplementary services that aid in the use of the core product or are required for service delivery
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Enhancing service
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supplementary services that may add extra value for customers
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Product line
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offer a line of products rather than just a single product
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Branded house
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describes a company, such as the Virgin Group, that applies its brand name to multiple offerings in often unrelated fields.
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House of brands
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each brand is actively promoted under its own brand name
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Franchising
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a popular way to expand delivery of an effective service concept, embracing all of the seven Ps, to multiple sites, without the level of investment capital that would be needed for rapid expansion of company-owned and managed sites.
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Export
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the service concept by establishing a service factory in another country (alone or with foreign partners)
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Import
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customers by attracting customers to visit the firm's home country and use its service there.
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Transport
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customers to new location
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Pricing tripod
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costs to the provider, competitors' pricing, and value to the customer
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Cost-based pricing
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the practice of relating the price charged to the costs associated with producing, delivering, and marketing a product
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Value-based pricing
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the practice of setting prices based on what customers are willing to pay for the value they believe they will receive
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Competition-based pricing
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the practice of setting prices relative to those charged by competitors
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Dynamic pricing
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a technique, employed primarily by e-tailers, to charge different customers different prices for the same products, based on information collected about their purchase history, preferences, and price sensitivity
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Revenue management
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a pricing and product design strategy based on charging different prices to different segments in order to maximize the revenue that can be derived from a firm's available capacity at any specific period of time
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Price elasticity
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the extent to which a change in price leads to a corresponding change in demand in the opposite direction
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Tangible metaphors
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help to communicate benefits of service offerings
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Click-throughs
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measure how many visits to its own website are generated by
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Word of mouth
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positive or negative comments about a service made by one individual to another
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Flowchart
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a visual representation of the steps involved in delivering service to customers
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Blueprint
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a visual map of the sequence of activities required for service delivery that specifies front-stage and back-stage elements and the linkages between them
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Line of visibility
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contact persons (invisible actions)
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Service process redesign
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revitalizes processes that have become outdated. Encompasses reconstitution, rearrangement, or substitution of service processes
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Self-service technologies
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allows consumers to produce a service independently without the help of direct service employee involvement
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Productive capacity
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the extent of the facilities, equipment, labor, infrastructure, and other assets available to a firm to create output for its customers.
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Queuing systems
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can be tailored to market segments. Urgency of job, duration of service transaction, payment of premium price, importance of customer.
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Waiting lines
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known as queues. Occurs whenever the number of arrivals at a facility exceed the capacity of the system to process them.
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Reservations system
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Accommodates preferences. Deflects demand from unavailable first choices to alternative times and locations.
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Stimulus-Response model
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holds that the conscious and unconscious perception and interpretation of the environment influences how people feel.
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Ambient conditions
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those characteristics of the environment that pertain to your five senses.
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Emotional labor
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the act of expressing socially appropriate (but sometimes false) emotions toward customers during service transactions
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Cycle of success
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Longer-term view of financial performance; firm seeks to prosper by investing in people.
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Empowerment
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authorizing employees to find solutions to service problems and make appropriate decisions about responding to customer concerns without having to ask a supervisor's approval
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Customer loyalty
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customer's willingness to continue patronizing a firm over the long-term, preferably exclusively, and recommending the firm's products to others.
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Customer lifetime value
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the net present value of the stream of future contributions or profits or profits expected over each customers' purchases during his or her anticipated lifetime as a customer of the organization
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The wheel of loyalty
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Reduce churn drivers, build a foundation for loyalty, create loyalty bonds
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Social bonds
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based on personal relationships between providers and customers. harder to build and imitate and thus, better chance of retention in the long term
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Customization bonds
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customized service for loyal customers
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Structural bonds
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Align customers' way of doing things with supplier's own processes
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Switching costs
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reduces churn
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Service recovery paradox
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refers to the effect that customers who experience a service failure and then have it resolved are sometimes more satisfied than customers who have had no problem in the first place
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Service guarantees
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a promise that if service delivery fails to meet predefined standards, the customer is entitled to one or more forms of compensation
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Jaycustomers
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a customer who acts in a thoughtless or abusive way, causing problems for the firm, its employees, and other customers
