MKT Chapter 13 Concepts- Marketing Services

One of the most important factors for adequate service recovery is for the provider to ______.

respond to the customer and resolve the problem quickly

Service Gaps Model: Knowledge Gap

Reflects the difference between customers' expectations and the firm's perception of those customer expectations. Firms can close this gap by determining what customers really want by doing research using marketing metrics such as service quality and the zone of tolerance

Economic Importance of Service

- production is cheaper in other countries - high value placed on convenience and leisure - household maintenance more specialized (developed economies are increasingly service economies)

Which of the following is most likely to lead to high levels of customer loyalty?

High customer satisfaction ratings

Which of the following are benefits that a service provider receives from engaging in effective service recovery? (Check all that apply.)

Increased purchase intention Improved word of mouth

The Service Gaps Model can be very useful to improve the delivery of services. Match each of the following gaps with an example of that gap.

Knowledge Diners at a restaurant think the portions are too small, but the manager is unaware of this complaint. Standards Management believes that customers in a restaurant think the service is very slow, however, management allows servers to stand around and chat. Delivery A restaurant usually serves fresh bread made on the premises, but at the end of the day the ovens are shut down early and only cold loaves are available. Communication A restaurant advertises they are open for breakfast, but when guests arrive on Sunday morning, there is a sign on the door indicating they only open for brunch at 11:00.

Service Recovery: Provide a Fair Solution

Most people realize that mistakes happen. But when they happen, customers want to be treated fairly, whether that means distributive or procedural fairness. distributive fairness Pertains to a customer's perception of the benefits he or she received compared with the costs (inconvenience or loss) that resulted from a service failure. procedural fairness Refers to the customer's perception of the fairness of the process used to resolve complaints about service.

One of the most effective methods to assess how well a firm is delivering adequate service to consumers is to employ the ______ Model to evaluate their service provision.

Service Gaps

McDonald's has a policy that, in addition to ketchup, mustard, and onions, all burgers must have two pickles. This contributes to efforts to reduce the ______ gap and provide measurable service quality based on expectations.

Standards (By setting appropriate service standards and measuring service performance, firms can attempt to close the standards gap.)

Service Recovery: Resolve Problems Quickly

The longer it takes to resolve a service failure, the more irritated the customer will become and the more people he or she is likely to tell about the problem. To resolve service failures quickly, firms need clear policies, adequate training for their employees, and empowered employees.

Core Differences between Services and Goods: Heterogeneous

The more humans are needed to provide a service, the more likely there is to be heterogeneity, or variability, in the service's quality. - Technology- KING - Training - Automation

Core Differences between Services and Goods: Inseparable

Unlike energy bars that may have been made six months prior to their purchase, services are produced and consumed at the same time; that is, service and consumption - Production and consumption are simultaneous - Little opportunity to test a service before use

Service Gaps Model

designed to encourage the systematic examination of all aspects of the service delivery process and prescribes the steps needed to develop an optimal service strategy

In addition to providing service employees with emotional and instrumental support, management should offer the staff ______ that reward them for providing customers with good service.

incentives

Services are __________________ , which means that they cannot be touched, tasted, or seen.

intangible

The most fundamental difference between services and goods is that services are ______.

intangible

Service Recovery

listen to the customer, resolve problems quickly, provide a fair solution

For the marketing manager to be able to deliver consistent quality service, it is imperative to set ______.

measurable goals that are based on customer expectations

A customer with a complaint about the way in which a washing machine repair was made will become increasingly more annoyed with the service provider ______.

the longer it takes to get an answer from the firm

Core Differences between Services and Goods

intangible inseparable heterogeneous perishable

Which of the following products or services is considered perishable in the sense that it cannot be stockpiled?

A dental exam

Service

Any intangible offering that involves a deed, performance, or effort that cannot be physically possessed; intangible customer benefits that are produced by people or machines and cannot be separated from the producer.

If the Americana Hotel has successfully closed the standards gap, the knowledge gap, and the delivery gap in providing customers with service, it is still necessary to close the ________________ gap.

Communication

Which of the following are characteristics that make marketing services different from product marketing? (Choose every correct answer.)

Intangibility Perishability Heterogeneity

Match each of the five dimensions of service quality (on the left) with its definition (on the right).

Reliability Ability to perform the service dependably and accurately Responsiveness Willingness to help customers and provide prompt service Assurance Knowledge and courtesy by employees and their ability to convey trust and confidence Empathy Caring, individualized attention provided to customers Tangibles Appearance of physical facilities, equipment, personnel, and communication materials

Service Gap

Results when a service fails to meet the expectations that customers have about how it should be delivered.

Customer _____________ refers to human or mechanical activities undertaken by firms to help satisfy their customers' needs and wants.

Service

The Service-Product Continuum

These photos illustrate the continuum from a pure service to a pure good. Most offerings lie somewhere in the middle and include some service and some good. (i.e., a hybrid of the two)

Which of the following characteristics is NOT one that distinguishes services from products?

Volatility

Customer service is best represented by which of the following statements? Customer service ______.

adds to marketing efforts by helping to meet the customers' needs and wants

Ryanair advertised the lowest rates in Europe with fares of $12 between Paris and Munich. However, when Bill arrived at the airport, he had to pay $28 in taxes, $25 for one small carry-on bag, $6 for a non-alcoholic beverage, and $2.50 to use the restroom on the plane. Between Ryanair and the customer there is a ______ gap.

communication

When a hotel has a service delivery problem such as a broken air conditioning system on a very hot weekend, one critical element of service recovery is to ______.

find a solution that seems fair to all customers

Jane has realized that she does not enjoy taking a taxi to work because there is substantial ______ in the delivery of the service depending on who is driving her cab that day.

heterogeneity

When many students are complaining about a problem at an online university, one of the best things the university can do to better serve its students is to ______.

honestly listen to students' complaints and use their messages to build a committed relationship

The primary reason there is greater heterogeneity in services than in products is because ______.

human inputs generate differences

Core Differences between Services and Goods: Perishable

in that they cannot be stored for use in the future. You can't stockpile your membership at Planet Fitness like you could a six-pack of V8 juice, for instance. The perishability of services provides both challenges and opportunities to marketers in terms of the critical task of matching demand and supply. - Airplanes- flight delayed - Restaurants - Hotels

One of the basic ways in which services differ from products is that production and consumption are ______ from each other. Consequently, service providers often include options for the customer to become more involved in the production of the service, which usually results in greater customer satisfaction.

inseparable

One of the first steps in service recovery is that the firm needs to allow the customer to air his grievance and for the firm to ______ him.

listen to

Empowerment

means allowing employees to make decisions about how service is provided to customers.

Service Gaps Model: Standard Gap

pertains to the difference between the firm's perceptions of customers' expectations and the service standards it sets. By setting appropriate service standards, training employees to meet and exceed those standards, and measuring service performance, firms can attempt to close this gap.

Despite having to deal with difficult guests, the service provider can be motivated to provide "service with a smile" when the firm ______.

provides support and incentives to motivate quality service

Poor service delivery can be converted into a positive interaction through service ______, an effort that resolves the problem fairly and shows the buyer that the firm is listening to the complaint.

recovery

Core Differences between Services and Goods: Intangible

they cannot be touched, tasted, or seen like a pure product can. When you get a physical examination, you see and hear the doctor, but the service itself is intangible. This intangibility can prove highly challenging to marketers, especially if they are more accustomed to selling. - Requires using cues to aid customers - Atmosphere is important

A restaurant is facing a problem in service delivery on a night when there are twice as many customers dining as usual. An integral part of recovery of the service dilemma is to provide both distributive and procedural _______________ in resolving the delays in getting all customers served.

Fairness

True or False: Service providers that have high customer satisfaction ratings this year are unlikely to achieve the same level of satisfaction next year.

False (A service provider that does a good job one year is likely to keep customers satisfied the next year too.)

Service Recovery: Listen to the Customer

Firms often don't find out about service failures until a customer complains. Whether the firm has a formal complaint department or the complaint is offered directly to the service provider, the customer must have the opportunity to air the complaint completely, and the firm must listen carefully to what he or she is saying.

Customer Service

Specifically refers to human or mechanical activities firms undertake to help satisfy their customers' needs and wants.

One difference between products and services is demonstrated by a hair salon, where the stylist delivers the service at the same time the customer receives it. This is called ______.

inseparability

Service Gaps Model: Delivery Gap

is the difference between the firm's service standards and the actual service it provides to customers. This gap can be closed by getting employees to meet or exceed service standards when the service is being delivered by empowering service providers, providing support and incentives, and using technology where appropriate.

Service providers cannot inventory or stockpile things like haircuts during slow times to "sell" later when the facility is busy. This characteristic of services is called ______.

perishability

Zone Of Tolerance

refers to the area between customers' expectations regarding their desired service and the minimum level of acceptable service—that is, the difference between what the customer really wants and what he or she will accept before going elsewhere. To define the zone of tolerance, firms ask a series of questions about each service quality dimension that relate to: - The desired and expected level of service for each dimension, from low to high. - Customers' perceptions of how well the focal service performs and how well a competitive service performs, from low to high. - The importance of each service quality dimension.

Service Gaps Model: Communication Gap

refers to the difference between the actual service provided to customers and the service that the firm's promotion program promises. If 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.