Marketing Exam 2 – Services Marketing Class Notes

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intangible item that an organization provies to consumers in exchange for money
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service
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4 elements that differentiate services from goods
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intangiblity, inconsistency, inseperability, inventory
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industrialize service
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mcdonalds and t-bell do this to try to make these services as uniform as possible
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co-creation
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allows customers to be actively involed in the production of the service
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benefits from the interaction between customer and service provider
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participative benefits
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Brand Value =
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functional benefits+emotional benefits+participative benefits/price
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service continuum
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some services more intangible than others
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yield management techniques
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used by comapneis to match supply with demand. groupon, living social
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American Consumer Satisfaction Institute
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measures customer satisfaction. services lower than goods. people dont recomend disastisfying places
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3 levels of services
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core, expected, augmented, potential
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core service
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having the right product at the right place at the right time at the right price
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potential sercie
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pool of ideas for providing better service that have not been implemented yet
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How does consumers asses service quality
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RATER. Reliability, Assurance, Tangibles, Empathy, Responsiveness
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Most important aspect of service quality
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reliability
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What is used to increase assurance
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trade characters and slogans, frontline employee lack of knowledge decreases it
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Low company responsibility, low problem severity
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empathy
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low company responsiblity, high severity
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hero
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high company responsibility, low severity
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fix it
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high company responsiblity, high severity
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red carpet
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how are expectations gaines
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word of mouth, past experiences, promotional activites, personal needs
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exists when customer perceptions fall short of customer expectations
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quality gap
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4 components of a quality gap
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knowledge gap, standards gap, delivery gap, communications gap
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difference between what customers expect and what management thinks they expect
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knowledge gap
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exists when management accurately perceives expectations but sets up a service inappropriately
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standards gap
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managers know what they want to do but do not deliver it correctly, most commonly because of employees. largest gap
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delivery gap
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internal marketing
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treating employees like they want employees to treat customers
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difference between what company really does and what it tells customers it is going to do, promises more than delivery
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communications gap
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customer retention
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having a customer come back, increasingly important especially in service industries
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relational approach v transactional approach
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views customer value as more than one time purchase
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Ways to earn profits from repeat customers
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larger/more purchases, reduced operation costs, more referrals, price premium
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WHy is CLV over-simplified and over-estimated
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considers revenue, not profits, fails to account for continuous defection (stop buying product), fail to account for time value of moeny
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effort by a company to develop a long-term, cost-effective link with individual customers for the mutual benefit of the customer and the organization
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relationship marketing
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frequency marketing (loyalty programs)
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attempts to reward people for their business. gain a greater share of their wallet, and “lock in” so they become dependent on company
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database marketing
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involves using large collections of data to make marketing decisions
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two types of relationship marketing
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frequency marketing and database marketing
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Customer relationship Managment
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CRM. uses software to manage relations by calculating RFM. recently, frequently, monetary value of purchases
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Customer pyramid
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Platinum, Gold, Iron, Lead. focus on higher ups, give benefits to platinum and gold, nothing to iron, and get lead out or to iron

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