Marketing Exam 3 Chapter 12

distributive fairness

- pertains to a customers perception of the benefits he or she received compared with the cost (inconvenience or loss) that resulted form a service failure - example: a person arrives to the airport to find her flight is overbooked, she may believe that taking the next flight out that day and receiving a travel voucher is adequate compensation for this inconvenience

standards gap

- pertains to the difference between the firm's perceptions of customers expectations and the service standards it sets - by setting appropriate service standards and measuring service performance, firms can attempt to close this gap

zone of tolerance

- refers to the area between customers expectations regarding their desired service and the minimum level of acceptable service - the difference between what the customer really wants and what he or she will accept before going elsewhere -firms ask a series of questions about each service quality dimension that relates to

service

is any intangible offering that involves a deed, performance, or effort that can not be physically possessed

perishability of service

- can not be stored for use in the future - provides both challenges and opportunities to marketers in terms of the critical task of matching demand and supply

empowering service providers

- means allowing employees to make decisions about how service gets provided - when frontline employees are authorized to make decisions to help customers, service quality generally goes up - example: a Nordstrom shoe sales associate decided to break up two pairs of shoes, one a size 10 and another a size 10 1/2, to sell to a hard to fit customer. Although the other two shoes were unsalable and therefore make for an unprofitable sale, the customer purchased 5 other pairs that day and became a loyal customer (Nordstrom says "use your best judgement"

communication gap

- refers to the difference between the actual service provided to the customer and the service that the firms promotion manager promises - if firms were more realistic about their services they can provide and at the same time manage customer expectations they generally can close this gap

knowledge gap

- reflects the difference between customers expectations and the firms perception of those customers expectations - firms can close this gap by matching customer expectations with actual service through research (increase communication between customer and employee) - example: Mary is going to a hotel where she is expecting her room to be ready, a heated pool, and a good singer. the resort did not understand her expectations so they were not met

customer service

- specifically refers to human or mechanical activities firms undertake to help satisfy their customers needs and wants - this adds value to a firms product

service quality

- the customers perceptions of how well a service meets or exceeds their expectations - customers use 5 distinct service dimensions to determine this: reliability, responsiveness, assurance, empathy, and tangibles

delivery gap

- the difference between the firms service standards and the actual service it provides to customers - this gap can be closed by getting employees to meet or exceed service standards - where "rubber meets the road" - customer directly interacts with the service provider - Mary is not satisfied with her unclean room, the managers attitude, the unheated pool, the bad singer, or the stale food. (while some of these issues may have been avoided some possibly could not. The motel might have had a power surge resulting in unheated pool, the singer might have been sick, and the food may have been delivered late making it stale)

variable nature

- the quality may vary because it is provided by a human - example: a hair stylist might give bad haircuts in the morning because she went out the night before. Yet she may offer a better service than the under trained stylist working in the next station over - although sometimes negative companies can use this to their advantage

intangible

- things that can not be touched, tasted, or seen like a pure product can

inseparable service

- this is produced and consumed at the same time (service and consumption) - example: getting a hair cut - customers rarely have the opportunity to try the service before they purchase it, because of this risk some firms provide extended warranties or 100% satisfaction guarantees

gaps model

is designed to highlight those areas where customers believe they are getting less or poorer service than they should

voice-of-customer

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

procedural fairness

refers to the customers perception of the fairness of the process used to resolve complaints

reliability

the ability to perform the service dependably and accurately

tangibles

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

empathy

the caring, individualized attention provided to a customer

assurance

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

instrumental support

the systems and equipment used to deliver the service properly

responsiveness

the willingness to help customers and provide prompt service

service gap

this results when a service fails to meet expectations that customers have

1. What is the desired and expected level of service for each dimension? 2. What are the customers perception of how well the focal service performs and how well a competitive service performs? 3. What is the importance of each service quality dimension?

what are the 3 questions asked when using the zone of tolerance

1. intangible 2. inseparable 3. variable 4. perishable

what are the 4 fundamental characteristics of service

1. knowledge gap 2. standards gap 3. delivery gap 4. communication gap

what are the 4 types of service gaps