Characteristics of Services

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inseparability of production and consumption

both the service provider and the customer must work together to provide and receive the service's full potential

customer contact

can minimize customer dissatisfaction by changing high contact service to low contact

inseparability of production and consumption

centralized mass production is difficult

perishability

challenges: balancing supply and demand, and planning for peak and off-peak times

client-based relations

customers= clients= lawyers

customer contact

employee training programs

customer contact

employees of high contact service providers are a crucial ingredient in creating satisfied customers

inseparability of production and consumption

hard to market service because the customer must be involved in production

perishability

services cannot be inventoried and sold at a later date

heterogeneity

standardization and quality are difficult to control

intangibility

suggesting that the customer place some degree of trust in the service provider

intangibility

the characteristics that a service is not physical and cannot be perceived by the senses

heterogeneity

the first message given each day is better than the last

perishability

the inability of unused service capacity to be stored for future use

inseparability of production and consumption

the quality of being produced and consumed at the same time

heterogeneity

usually increases as the degree of labor intensiveness increases

heterogeneity

variation in quality

perishability

wish some of the empty slots from earlier in the week were available on this Saturday afternoon

client-based relations

word of mouth is a key factor

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

What are the characteristics of services?

client-based relations

accountants, beauticians, lawyers, and doctors

customer contact

installing ATMs have increased production capacity and reduced the number of personnel

client-based relations

interactions that result in satisfied customers who use a service repeatedly over time

intangibility

judge overall appearance, cleanliness of the physical organization (clean, sharp looking employees)

heterogeneity

machinery such as ATMs and online customer service can reduce it

customer contact

main principle: satisfied employees= satisfied customers

intangibility

may have a problem evaluating service offerings

customer contact

refers to the level of interaction between the service provider and the customer necessary to deliver the service


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