Marketing Chapter 13 Services

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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

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