Marketing Chapter 10

What are market strategies for Variability?

Institute total quality management programs Offer service guarantees Conduct gap analysis to identify gaps in quality

Equipment or Facility-Based Services

Some products include a mixture of tangible and intangible elements.

What are 4 characteristics that will shape the "Future of Services"?

1) Changing Demographics - service industries that meet the needs of older consumers will see dramatic growth 2) Globalization - increase the need for logistics and distribution services to move goods around the world and for accounting and legal services that facilitate these global exchanges. 3) Technological Advances - provides opportunities for growth and innovation in global service industries such as telecommunications, health care, banking, and Internet services. 4) Proliferation of Information - provide greater opportunities for database services, artificial intelligence systems, communications systems, and other services that facilitate the storage and transfer of knowledge

What are 5 examples of major "Gaps"?

1) Gap between consumers' expectations and management's perceptions 2) Gap between management's perception and quality standards the firm sets 3) Gap between established quality standards and service delivery 4) Gap between service quality standards and consumers' expectations 5) Gap between expected service and actual service

What are the 4 characteristics of services?

1) Intangibility 2) Perishability 3) Variability 4) Inseparability

What are 3 factors of Equipment- or Facility-Based Services?

1) Operational Factors 2) Locational Factors 3) Environmental Factors

What are the 3 strategies to sell a celebrity?

1) Pure Selling Approach 2) Product Improvement Approach 3) Market Fulfillment Approach

What are 3 types of service quality attributes?

1) Search Qualities 2) Experience Qualities 3) Credence Qualities

What are 2 dimensions of the Service Encounter?

1) Social contact dimension—one person interacting with another person. 2) Physical dimension—customers often pay close attention to the environment where they receive the service.

Gap Analysis

A marketing research method that measures the difference between a customer's expectation of a service quality and what actually occurred. *Figure 10.2, pg 284

Critical Incident Technique

A method for measuring service quality in which marketers use customer complaints to identify critical incidents—specific face-to-face contacts between consumer and service providers that cause problems and lead to dissatisfaction.

SERVQUAL

A multiple-item scale used to measure service quality across dimensions of tangibles, reliability, responsiveness, assurance, and empathy.

New Dominant Logic for Marketing

A reconceptualization of traditional marketing to redefine service as the central (core) deliverable and the actual physical products purveyed as comparatively incidental to the value proposition.

Disintermediation

A service that requires the customer to obtain an outcome without the intervention of a human provider.

Search Engine Optimization (SEO)

A systematic process of ensuring that your firm comes up at or near the top of lists of typical search phrases related to your business.

What are market strategies for Perishability?

Adjust pricing to influence demand Adjust services to match demand (capacity management)

Pure Selling Approach

An agent presents a client's qualifications to potential "buyers" until she finds one who is willing to act as an intermediary.

Market Fulfillment Approach

An agent scans the market to identify unmet needs. After identifying a need, the agent then finds a person or a group that meets a set of minimum qualifications and develops a new "product."

Product Improvement Approach

An agent works with the client to modify certain characteristics that will increase her market value.

Goods-Dominated Products

Companies that primarily sell tangible products still must provide support services

Intangibles

Experience-based products.

People Based Services

Individual service providers—even for the same firm— are inherently unique and different.

Services

Intangible products that are exchanged directly from the producer to the customer.

Place Marketing

Marketing activities that seek to attract new businesses, residents, or visitors to a town, state, country, or some other site.

Idea Marketing

Marketing activities that seek to gain market share for a concept, philosophy, belief, or issue by using elements of the marketing mix to create or change a target market's attitude or behavior.

Credence Qualities

Product characteristics that are difficult to evaluate even after they have been experienced (doctor's diagnosis correct? - include tangible clues o professionalism, like diploma, lab coat, etc...)

Experience Qualities

Product characteristics that customers can determine during or after consumption (we can't really predict how good a vacation will be until we have it, so marketers need to reassure customers before the fact that they are in for a positive experience).

Search Qualities

Product characteristics that the consumer can examine prior to purchase (i.e. color, style, price, fit, smell, and texture - flight attendants' uniforms or the decor of a hotel room).

What are market strategies for Intangibility?

Provide tangibility through physical appearance of the facility Furnishings Employee uniforms Logo Web sites Advertising

Reliability

The ability to provide dependably and accurately what was promised.

Service Encounter

The actual interaction between the customer and the service provider.

Servicescape

The actual physical facility where the service is performed, delivered, and consumed.

Core Service

The basic benefit of having a service performed.

Perishability

The characteristic of a service that makes it impossible to store for later sale or consumption.

Intangibility

The characteristic of a service that means customers can't see, touch, or smell good service.

Variability

The characteristic of a service that means that even the same service performed by the same individual for the same customer can vary.

Inseparability

The characteristic of a service that means that it is impossible to separate the production of a service from the consumption of that service.

Augmented Services

The core service plus additional services provided to enhance value.

Empathy

The degree of caring and individual attention customers receive.

Assurance

The knowledge and courtesy of employees, and the ability to convey trust and confidence.

Tangibles

The physical facilities and equipment and the professional appearance of personnel.

Capacity Management

The process by which organizations adjust their offerings in an attempt to match demand.

Responsiveness

The willingness to help customers and provide prompt service.

What are market strategies for Inseparability?

Train employees about successful service encounters Explore means for disintermediation