Chapter 13: Services Marketing The Intangible Product

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Core service
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The most basic benefit the consumer is buying
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Supplementary Service
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A group of services that support or embrace the core service.
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Service
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Any intangible offering that involves a deed, performance, or effort that cannot be physically possessed; intangible customer benefits that are produced by people or machines and cannot be separated from he producer.
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Customer Service
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Specifically refers to human or mechanical activities firms undertake to help satisfy their customers’ needs and wants.
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Intangible
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A characteristic of a service; it cannot be touched, tasted, or seen like a pure product can.
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Inseparable
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A characteristic of a service: it is produced and consumed at same time; that is, service and consumption are inseparable.
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Heterogeneity
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As it refers to the differences between the marketing of products and services, the delivery of services is more variable.
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Perishable
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A characteristic of a service; it cannot be stored for use in the future.
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Service Gap
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Results when a service fails to meet the expectations that customers have about how it should be delivered.
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Knowledge Gap
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A type of service gap; reflects the difference between customers’ expectations and the firm’s perception those expectations.
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Standards Gap
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A type of service gap: pertains to the difference between the firm’s perceptions of customers’ expectations and the service standards it sets.
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Delivery Gap
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A type of service gap; the difference between the firm’s service standards and the actual service it provides to customers.
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Communication gap
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A type of service gap; refers to the difference between the actual service provided to customers and the service that the firm’s promotion program promises.
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Service Quality
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Customers’ perceptions of how well a service meets or exceeds their expectations.
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Search Quality
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Applied to goods more often, assessed before purchase
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Experience Quality
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Assess after purchase
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Credence Quality
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Assessed only with appropriate knowledge.
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People Processing
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Service directed at customer getting hair/nails done, massage, doctor, personal training, counseling.
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Possession Processing
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Service directed at customer’s physical possessions- car mechanic, dry cleaners, lawn mowers.
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Mental stimulus Processing
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Service directed at people’s mind *entertainment*
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Information Processing
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Service that use technology/brainpower directed at the customer’s assets. – Banking, Insurance, Financial planning.
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Reliability
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The ability to perform the service dependably and accurately
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Responsiveness
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The willingness to help customers and provide prompt service.
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Assurance
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The knowledge of and courtesy by employees and their ability to convey trust and confidence.
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Empathy
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The caring, individualized attention provided to customers.
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Tangibles
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The appearance of physical facilities, equipments, personnel, and communication materials.
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Voice-of-customer Program
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An ongoing marketing research system that collects customer inputs and integrates them into managerial decisions.
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Zone of Tolerance
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The area between customers’ expectations regarding their desired service and the minimum level of acceptable service– that is , the difference between what the customer really wants and what he or she will accept before going elsewhere. -The customer will only put up with so much.
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Empowerment
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In context of service delivery, means allowing employees to make decisions about how service is provided to customers.
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Emotional Support
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Concern for others’ well-being and support of their decisions in a job setting.
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Instrumental Support
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Providing the equipment or systems needed to perform a task in a job setting. example burger places with IPads.
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Distributive fairness
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Pertains to a customer’s perception of the benefits he or she received compared with the costs (Inconvenience or loss) that resulted from a service failure.
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Procedural fairness
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Refers to the customer’s perception of the fairness of the process used to resolve complaints about service.

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