Chapter 13 - Services: The Intangible Product

Perishable

A characteristic of a service: it cannot be store for use in the future.

Intangible

A characteristic of a service; it cannot be touched, tasted or seen like a pure product can.

Inseparable

A characteristic of a service; it is produced and consumed at the same time; that is, service and consumption are inseparable.

Standards Gap

A type of service gap; pertains to the difference between the firm's perceptions of customers' expectations and the service standards it sets.

Communication Gap

A type of service gap; refers to the difference between the actual service provided to customers and the service that the firm's promotion program promises.

Knowledge Gap

A type of service gap; reflects the difference between customers' expectations and the firm's percception of those expectations.

Delivery Gap

A type of service gap; the difference between the firm's service standards and the actual service it provides to customers.

Service Quality

Customers' perceptions of how well a service meets or exceeds their expectations.

Voice-of-Customer (VOC) Program

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

Service

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

Heterogeneity

As it refers to the differences between the marketing of products and services, the delivery of services is moer variable.

Emotional Support

Concern for others' well-being and support of their decisions in a job setting.

Empowerment

In context of service delivery, means allowing employees to make decisions about how service is provided to customers.

Distibutive Fairness

Pertains to customer's perception of the benefits he or she received compared with the costs (inconvenience or loss) that resulted from a service failure.

Instrumental Support

Providing the equipment or systems needed to perform a task in a job setting.

Procedural Fairness

Refers to the customer's perception of the fairness of the process used to resolved complaints about service.

Service Gap

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

Customer Service

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

Zone of Tolerance

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.