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any intangible offering that involves a deed, performance, or effort that cannot be physically possessed.

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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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Customer service

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by providing good customer service, firms add

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value to their products

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The marketing of services differs from product marketing because of the four fundamental differences involved in services:

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intangible, inseparable, heterogeneous, and perishable.

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The most fundamental difference between a product and a service.

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Intangible

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the factor that makes services different from product marketing because they cannot be touched tasted or seen

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intangible

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The factor that makes services different from product marketing because Services are produced and consumed at the same time

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inseperable production and consumption

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the factor that makes services different from product marketing because the delivery of services is more variable

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Heterogeneous

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the factor that makes servics different from product marketing because services cannot be stored for the future

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perishable

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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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service gap

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The four types of service gaps

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1) Knowledge gap 2) Standards Gap 3) Delivery Gap 4) Communication Gap

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reflects the differences between customers' expectations and the firms perception of those customer expectations.

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knowledge gap

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Firms can close the knowledge GAP by

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determining what customers really want by doing research using marketing metrics such as service quality and the zone of tolerance.

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pertains to the differences between the firm's perceptions of customers expectations and the service standards it sets.

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Standards GAP

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You can close the Standards GAP by

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setting appropriate service standards, measuring service performance.

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The difference between the firm's service standards and the actual service it provides to its customers.

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Delivery GAP

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Delivery GAP can be closed by

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by empowering service providers, providing support and incentives, and using technology where appropriate.

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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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communication GAP

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How do firms close the communication GAP?

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firms are more realistic about the services they can provide and at the same time manage customer expectations effectively, they generally can close this gap.

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To reduce the knowledge gap firms must understand

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customer expectations

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to understand the customer expectatios needed to close the knowledge gap firms must

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undertake customer research and increase the interaction and communication between managers and employees.

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Customers Perceptions of how well a service meets or exceeds their expectations

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Service Quality

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What are the builduing blocks of service quality?

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1) Reliability 2) Responsiveness 3) Assurance 4) Empathy 5) Tangibles

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the ability to perform the service dependably and accurately

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reliability

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: The willingness to help customers and provide prompt service

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responsiveness

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the Knowledge of and courtesy by employees and their ability to convey trust and confidence

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assurance

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The caring, individualized attention provided to customers

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Empathy

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The appearance of physical facilities, equipment, personnel, and communication materials

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tangibles

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An ongoing marketing research system that collects customer inputs and integrates them into managerial decisions.

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voice of customer program

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When a service failure does occur, the firm has a unique opportunity to demonstrate its

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customer commitment

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Effective Service Recovery Demands

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1) listening to customers and involving them in the service recovery 2) Providing a fair solution 3) Resolving the problem quickly

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Firms often don't find out about service failures until

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a customer complains

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Pertains to a customer's perception of the benefits he or she received compared with the costs that resulted from a service failure

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Distributive Fairness

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refers to the perceived fairness of the process used to resolve service failures

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procedural fairness

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To resolve service failures quickly: firms needs

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1) clear policies 2) adequate training for their employees 3) empowered employees

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physical good, idea, or service

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product

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Doctors are an example of a _____ dominant good

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service

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Grocery stores are an example of a _____ dominant good

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product

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Most offerings lie __________ of the service and product dominant continuam

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service or product

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What factor that differentiates services from goods requires using ques like atmosphere and images to make it more tangible?

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Intangibles

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What factor that differentiaties services from goods requires that supply and demand must be carefully managed

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perishable

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What factor that differentiaties services from goods means that production and consumption are simulataneous?

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Inseparable

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the 3 aspects of the inseprable quality of services

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1) Cannot inspect out defects ahead of time 2) Consumer is part of service 3) Lower Risk by offering Guarantees or warranties

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The 3 aspects of the perishable quality of services

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1) Cannot be produced ahead of time 2) If not consumed, revenue is lost 3) Must carefully manage supply and demand

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The 2 aspects of the intangible quality of servcies

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1) Cannot be seen, touched, tasted, felt, or stored 2) Requires using cues to make more tangible

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The 3 aspects of the heterogenous quality of services

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1) Different from time to time 2) Technology/Automation 3) Training/Scripts

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performed correctly

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Reliability

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Performed on time

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Responsiveness

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Performed "like you know what you are doing"

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Assurance

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Performed with caring

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empathy

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Performed in a nice environment

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Tangibles

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Do you ever assume that customers are happy?

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no

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What gap is based upon consumer needs?

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Standards gap

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In what gap do you educate employees to close it?

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Standards Gap

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In What gap do you need to hire well, train, monitor, and reward to close it?

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delivery gap

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in what Gap must it reflect actual service?

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Communication GAP

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in what quality of services do you lower the risk for the consumer by offering guarantees or warranties?

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Inseperable production and consumption

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the aspect of services that means they vary from time to time in their quality

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heteregoneous

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The five Steps of the GAPS Model

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1) Customer Expectations for service quality 2) Management perception of customer expectations 3) Standards Specifying service to be delivered 4) Actual service delivered 5) Service Provider communicates about service quality

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What two steps of the GAPS model go into the knowledge GAP

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1) Customer expectations for service quality 2) Management perception of customers expectation

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What two steps of the GAPS model go into the standards GAP

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1) Management perception of customer expectations 2) Standards specifying service to be delivered

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What two steps in the GAPS model go into the Delivery Gap?

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1) Standards Specifying Service to be delivered 2) Actual Service Delivered

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What two steps in the GAPS model go into the communication gap?

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1) Actual Service Delivered 2) Service Provider communicates about service quality

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in the marketing of services the basic marketing mix is

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expanded

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product and price relate to

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processes

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place relates to

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physical evidence

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promotion and price relates to

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people

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in the expanded 4p's of service people includes

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1) Employees 2) Customers

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In the expanded 4p's of service physical evidence includes

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1) The tangible part of the service 2) Servicescape

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In the expanded 4[s of service processes refers to

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activities which lead up to and are apart of the service

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activities which lead up to and are apart of the service

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processes

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in the expanded 4ps of service product refers to

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1) emphasizing the service process 2) builduing the brand image

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in the expanded 4ps of service place refers to

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1) Generally no intermediaries 2) convienance is important

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in the expanded 4ps of service price refers to

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1) prices are harder to set and justify to customers for many services 2) use the price to adjust demand to supply

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in the expanded 4ps of service promotion refers to

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1) Focusing on making services seem tangible 2) Sharing good performance ratings

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key service being purchased

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core service

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using a logo that reflects the service

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emphasizing the core service

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The expanded P's of marketing for services

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1) Price 2) Place 3) Promotion 4) Product 5) Physical Evidence 6) Processes 7) People

Marketing Chapter 13 Services – Flashcards

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