CH 12 Services Marketing – Flashcards
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Services
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Intangible activities or benefits that an organization provides to satisfy consumer needs in exchange for money or something else of value Important in the US economy
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The 4 I's
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For unique elements to services Intangibility Inconsistency Inseparability Inventory
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Intangibility
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Services that are intangible; they can't be held, touched, or seen before the purchase decision
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Inconsistency
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Services depends on the people who provide them, their quality battles with each person's capabilities and day to day performance
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Inseparability
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The consumer cannot and does not separate the deliverer of the service from the service itself The amount of interaction between the consumer and the service provider depends on the extent to which the consumer must be physically present to receive the service Disadvantages of done self service technologies such as ATMs, grocery store scanning stations, and self service gad pumps is that the are perceived as being less personal
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Inventory
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With services, inventory carrying costs are more subjective and are related to idle production capacity Which is when the service provider is available but there is no demand for the service. The inventory cost of a service is the cost of paying the person to provide the service along with any needed equipment The inventory carrying costs of airlines are high because of high salaried pilots and expensive equipment
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Service Continuum
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The range of product dominant to service dominant offerings
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Classifying Services
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Services classified by... Delivered by ppl or equipment Profit or nonprofit Government sponsored
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Delivered by People or Equipment
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Skilled labor is required by people Equipment based services do not have the marketing concerns of inconsistency because people are removed from the provision of the service
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Profit or Non-Profit Organizations
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Companies also distinguish themselves by their tax status as profit or nonprofit organizations Nonprofit organizations excesses in revenue over expenses are not taxed or distributed to shareholders When excess revenue exists the money goes back into the organization's treasury to allow continuation of the service
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The Purchase Process
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Tangible goods such as clothing, jewelry, and furniture have search properties such as color, size, and style, which can be determined before purchase
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Experience Properties
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Services such as restaurants and child care which can be discerned only after purchase or during consumption
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Credence Properties
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Services provided by specialized professionals such as medical diagnosis and legal services that have characteristics that the consumer may find impossible to evaluate even after purchase and consumption
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Government Sponsored
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Government provides services too like the post office
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Assessing Service Quality
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Comparing expectations of a service offering to the actual experience a consumer has the service
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Gap Analysis
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This type of analysis asks consumers to assess their expectations and experiences on dimensions of service quality
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Word of Mouth
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How expectations are influenced rather than how the organization delivers its services
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Customer Contact Audit
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A flowchart of the points of interaction between consumer and service provider Basis for developing relationships with customers
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Relationship Marketing
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The contact between a customer and service provider represents a service encounter that is likely to influence the customers assessment of the purchase Relationship may also be developed through loyalty incentives
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7 Ps of Service Marketing
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Product Price Place Promotion People Physical Environment Process
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Price
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Charges, rates, fees, fares, and tuition
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Off Peak Pricing
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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
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Place
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The distribution site and the service deliverer are the tangible components of the service
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Promotion
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Value of promotion is to show consumers the benefits of purchases Publicity is important
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People
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The nature of the interaction between employees and customers strongly influences perceptions of the service experience
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Internal Marketing
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Based on the notion that a service organization must focus on its employees or internal market before successful programs can be directed at customers
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Customer Experience Management
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The process of managing the entire customer experience with the company
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Physical Environment
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Service firms need to manage physical evidence carefully and systematically to convey the proper impression of the service to the customer
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Process
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Refers to the actual procedures, my mechanisms, and flow of activities by which the service is created and delivered
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Product
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Brand name or identifying the logo of the service organization is particularly important when a consumer makes a purchase decision Strong brand names and symbols are important for service marketers as a means of differentiation and image of quality
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Capacity Management
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The service component of the marketing mix must be integrated with efforts to influence consumer demand Service organizations must manage the availability of the offering so that demand matches capacity over the duration of the demand cycle and the organization's assets are used in ways that will maximize the return on investment (ROI)
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Services in the Future
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Technological advances and the social imperative for sustainability
