CHAPTER 13 SERVICE MARKETING

Target public

-a collective of individuals who have an interest in or concern about an organization, product, or social cause

Empathy of Employees

-caring and individual attention provided by employees -listening to customer needs -caring about customers interest - providing personalized attention

Reliability

-consistency and dependability in preforming a service -Accuracy of billing or record-keeping -performing services on time

Client Public

-direct consumers of a produce of a nonprofit organization -most typical distribution channel used in nonprofit organizations

6 Characteristics of Services

1. intangibility 2. inseparability of production and consumption 3. perishability 4. client based relationships 5. customer contact 6. heterogeneity

Who judges quality?

Customers

What should marketers do to promote the consistency and reliability of their services most effectively?

Train employees and develop standard procedures for dealing with customers

Country was the worlds first service economy?

United States

Word of mouth

a large customer base although they do very little advertising

Service offered by an organization:

a package or bundle of services consisting of a core service and one or more supplementary services

Experience quality

attributes that can be assessed only during purchase and consumption of a product

Credence qualities

attributes that customers may be unable to evaluate even after purchasing and consuming a service -whether or not the product offered is beneficial

Core Service

basic service experience or commodity that a customer expects to receive -example tutoring may be the core but outlines would be supplementary

Importance of Services

can be challenging because services are intangible products, as opposed to goods which are tangible physical products

Service quality

customers perception of how well a service meets or exceeds their expectations

Differences between goods and services are determined by the:

degree of tangibility

Symbols

help overcome intangibility

Services are usually provided through the application of:

human or mechanical efforts directed at people or objects

Demand based pricing

increasing service price based on the level of demand for the service -perishability

Services providers are more likely to promote

performance documentation, availability, guarantees and price

Supplementary Service

supports the core service and is used to differentiate the service bundle from those of competitors

Search quality

tangible attributes that can be judged before the purchase of a product -trying on a pair of jeans, seeing a picture online

General Publics

-indirect consumers of a produce of a nonprofit organization

Assurance

-knowledge and skills of employees -ability to convey trust and confidence -company name and reputation -personal characteristics of employees

Tangibles

-physical evidence of the service -Attributes which are assessed only during the consumption of a service -appearance of physical facilitates, service personnel, tools and equipment used to provide the service

Continuum of tangibility

-service dominated products on one end; and good- dominated products -sugar- house- automobile- custom made clothing- restaurant dinning experience- air travel- health care- ad agency services- education

Heterogeneity

-variation in quality -higher human labor higher heterogeneity -employees being inconsistent -example: The fact that the first massage Gretchen gives each day is better than the last massage -Machinery such as ATMs and online customer services can reduce heterogeneity -service characteristics results in variability of service quality yet provides the opportunity for customizing services to match the specific needs of individual customers

Responsiveness

-willingness or readiness of employees to provide the service -returning customers phone calls -providing prompt service -handling urgent request

2 levels of expectations that consumers generally have about services

1. Acceptable 2. Desired

3 evaluation attributes

1. Search 2. Experience 3. Credence

5 Dimensions of service quality

1. appearance of tangibles 2. reliability 3. responsiveness 4. assurance 5. employee empathy

3 primary ways that marketers deliver services

1.Service facilities, 2. customer's home 3. from a distance

Marketing channels are usually:

Direct

Client based Relationships

Interactions that result in satisfied customers who use a service repeatedly over time -building a group of satisfied customers who use their services on a regular basis over long periods of time -customers are satisfied to the point that they use a service repeatedly over a period of time -

Peak Demand

Service activities are time-dependent, meaning that the service must be provided at a point in time when customers want to use it. this point in time is -time-sensitive services receives most of its revenue during this time

Perishability

The inability of unused service capacity to be stored for future use -The fact the services cannot be inventoried and then sold at a later date -challenges of balancing supply and demand and planning for peak and off-peak times -time

View services as:

a performance targeted at an audience

Homesourcing

a practice whereby customer contact jobs are outsourced into workers home

Customer service

any human or mechanical effort that adds value to a product

Non-profit marketing

includes activities conducted by individuals and organizations to achieve some goal other than ordinary business goals such as profit. -Major nonprofit marketers in the United States are social causes and charitable organizations. -Segmentation techniques used to identify target markets in for-profit businesses are also applicable to reaching nonprofit target markets. -the direct consumers of the product are the client public

Factor that has contributed the least to the growth of services in the U.S. economy:

increased number of high-tech goods

The growth of business services is largely attributed to

increases in the complexity and competitiveness of business environments

Customer contact employees

lowest paid and least trained

Service industries account for what percent of GDP?

nearly 3 quarters

Because practically all marketers provide some services

pure goods typically do not exist in todays business environment

Off Peak Demand

reduced prices for times when people don't generally demand a service

encourage word-of-mouth communication

reward received for a recommendation

Intangibilty

the characteristic that a service is not physical and cannot be perceived by the senses - means that consumers may have a problem evaluating service offerings -promises to customers, suggesting that the customer place some degree of trust in the service provider

Customer contact

the level of interaction between provider and customer needed to deliver the service -interaction between service provider and customer that allows a service to be delivered -level of interaction necessary between a customer and service provider in order to complete a service -Service companies can minimize customer dissatisfaction by changing high-contact services into low-contact services. -service providers are critical to delivery

Inseperabilty

the quality of being produced and consumed at the same time -an airline flight is characterized as inseparability because production and consumption occur simultaneously -example: Hair stylists find it challenging to market their service because the customer must be involved in production -consumers are involved in production. -centralized mass production is difficult -many services cannot be performed without the customer being present -attendance

When service companies change high-contact services into low-contact services:

the service becomes less personalized

Opportunity Cost

the value of the benefit given up by choosing one alternative over another

Zone of tolerance

tolerance of unexplainable delays

Distribution for nonprofit organizations:

typically characterized by short channels.