Marketing 409 (Services Marketing) Exam 2

Service quality expectations

Fast food restaurant chikfila (fast, hot, and ready) Fine Dining Restaurant Christophers (want fancy dishes served, waiters to answer questions knowledgeably)

Client publics

direct consumers of a product of a nonprofit organization

Reliability

get it right every single time. Wrong order errors can be reliability is

Client-based relationships

interactions that result in satisfied customers who use a service repeatedly over time Build trust and demonstrate customer commitment.

Target public

interested parties (support)

Service

is the product with an intangible core

Demand-based pricing most closely relates to the ____ of services.

perishability

Mikhail works on developing press releases for a nonprofit organization looking for new ways to encourage recycling among consumers and businesses. Mikhail is engaging in

social marketing

Heifer International

sustainable livelyhood, animals help produce products that lift people out of poverty. they can stand up and give them hope all on their own. A gift that grows, recipe of lasting change. aiming the target public and general public.

Dimensions of service quality

tangibles reliability responsiveness empathy assurance

Sarah sets up her new interior decorating business and advertises her expertise in high-quality draperies and other window treatments. One of her first customers is extremely dissatisfied with Sarah's work, so Sarah redoes the job at her own expense because she knows how powerful ____ is (are) for services and wants to stay in business.

word-of-mouth communication

Service quality

•A customer's perception of how well a service meets or exceeds their expectations.

Importance of services

•Account for nearly 80% of US GDP •More Fortune 500 firms are service firms than product firms •Many goods products have a service component

Principles of recovery

1. Never argue with a customer - you may win. 2. Make it easy to complain 3. Resolve at the point of contact 4. Resolve quickly 5. Find a fair solution 6. Repair the system

Which of the following services falls closest to the middle of the tangibility continuum?

A custom built yacht b. Dinner at the Olive Garden c. A trip to Brazil d. College education e. A new Ford Escape

Non-Profit Marketing Objectives

Change values Spread message Contribute money Donate services (food bank) (imbullyfree.org)

tangibles:

Clean, neat, appropriate. chikfila, store is clean in appearance. safe and secure.

Responsiveness

Dont make me wait! Standing in a long line for check out while you can open a check out lane. Dentist: the video game waiting areas. (ill be with you in a minute makes a big difference)

Keys to recovery (hampton inn)

Empower the employee •Hampton refunds 1% on average •For every $1 refunded, it gets back $7 in business •Ritz Carlton authorizes $2,000 per day Dont assume customers scam Dont overdo

Heterogeneity

Inconsistent quality Automation can reduce inconsistency. problematic: performed by humans. house cleaning services are different. Hair dresser video: service providers reduce concerns on heterogeneity. if licensed they communicate with customers. They can perform the task better than others.

The Ritz Carlton

Known for service quality Attention to detail 2X winner of malcolm baldridge national quality award. but ... giving great service doesn't mean being upscale, exclusive, or expensive. Level of personalization is what makes service quality special and unique.

Separability of production and consumption

Service provider cannot mass-produce service outcomes. Services are difficult to distribute.

Customer contact

Service providers are critical to delivery. Requires high levels of service employee training and motivation. Changing a high-contact service into a low-contact service to achieve. lower costs is difficult to achieve without reducing customer satisfaction.

Heterogeneity

Service quality is difficult to control. Service delivery is difficult to standardize.

Thought question

Services cannot technically be sampled. How can a marketer offer a sample of a hotel room in advance of a stay. a haircut.

Which of the following statements about customer contact in services marketing is false?

a. High-contact services are less expensive to deliver because they are typically equipment based. b. Employee training programs are an effective way to ensure good customer contact and reduce problems. c. Service employees are important in creating satisfied customers. d. The main principle of customer contact is that satisfied employees lead to satisfied customers. e. Service companies can minimize customer dissatisfaction by changing high-contact services into low-contact service

Client-based relationships are least likely to be developed by

a. psychiatrists. b. orthodontists. c. beauticians. d. accountants. e. appliance repairmen.

During periods of high demand, Uber pricing will often go up, a practice it terms "surge pricing." On the other hand, when times are slow, the prices of rides will often go down. This is to encourage passengers to use Uber during periods of slow demand. This pricing strategy is an example of

demand-based pricing

Giving great service

differentiates the business (chikfila, is fast and provide customer service activities, efficiency of the order takers.) Solidifies customer relationships Adds value for the customer is more profitable because of its customer loyalty.

Intangibility

difficult for customer to evaluate Customer does not take physical possession. Difficult to set advertise and display. Difficult to set and justify prices. Service process is usually not protectable by patents.

General public

indirect consumers

Surveys, focus groups, and customer comment cards are all methods used by service companies to

understand customer needs and expectations

Service recovery

Be prepared to do the job right the first time. Be prepared to do it more than right the second time. The second essential component of service

Empathy:

act like you care (asking if you enjoyed your meal or not.

Who judges service quality?

customers

In general, differences between goods and services are determined by the

degree of tangibility

The marketing channels for services are usually

direct from provider to customer

​The four factors that affect a customer's evaluation of a service are the analysis of customer expectations, service quality specifications, management of service expectations, and

employee performance

As the owner of a services business, you are constantly challenged to maintain consistent quality in your services. This heterogeneity is both a challenge and an opportunity. The opportunity arises because __________________.​

it allows you to customize your services to match the specific needs of individual customers

Assurance:

know what you are talking about. show that you are knowledgeable to satisfy the customers.

Inseparability: Dental Care

latest dental technology. Give children a better care of dental. Health care needs for a great smile.

Good service means

making sure customers understand the nature of the business and what is being provided and can be by advertising.

The continuum of tangibility goes from ____ on one end to ____ on the other end.

service-dominant products; good-dominant products

Disney: creating magical experiences

strategies for customer loyalty, expand the product to include the entire experience. things that impressed in the world of Disney: friendly, cleanness, The rides are the point of the Disney attractions. The one ride cost Disney one million dollars. If we are going to create and intense loyalty we need to move the task mentality to an experience mentality.

Client-based relationships

success depends on satisfying and keeping customers over the long term. Generating repeat business is challenging. Relationship marketing becomes critical.

Give em' the pickle

take care of them, give them the pickle. make the customers happy, starting a lawn mower, give em the pickle.

Perishability

Cannot be stored Must balance supply and demand. Example: airplane flights (seats of an empty flight is lost forever) hotel rooms, airline tickets. Wide variations of tickets fluctuations pricing in airline tickets or hotel rooms. Delta (perishability): ultimate upgrade for the private jet. offer private jet to customers. Additional money for a private jet trying to increase customer loyalty.

Services as Products

Lifestyle changes have expanded services Growth in business services

Non-profit marketing

Marketing activities conducted to achieve some goal other than ordinary business goals such as profit, market share or return on investment.

are students a product or a customer?

Receiving education from a university. (customer) Students as a product: •Who is the customer? What are they purchasing? •Tangibility (what you are providing is intangible) •Heterogeneity (standing out compared to others) •Perishability (another state wants to interview you ,skype and facetime interview) •Inseparability

Perishability

Services cannot be stored. Balancing supply and demand is very difficult. Unused capacity is lost forever. Demand may be very time sensitive.

What should marketers do to promote the consistency and reliability of their services most effectively?

Train employees and develop standard procedures for dealing with customers

Intagibility

cannot be perceived by the senses Cannot be physically possessed

A university's student body would be considered its ____ public; parents, alumni, and trustees would be included as its ____ public.

client; general

victor ou vistoria restaurante

cockroach was found in the food, managers fear customers will take advantage and start to scam.

Analyzing __________ can help a firm identify patterns that may indicate the need for corrective action or suggest market opportunities that can be exploited.

complaints and reviews

A small private college in Alabama paid a significant sum of money to a marketing firm to study the college's current marketing strategy and help develop new strategies for attracting students. The college is having a difficult time evaluating the effectiveness of the marketing firm's work because this type of service has many

credence qualities

Outcomes and dissatifactions

customer complains and is satisfied with recovery. Customer complains and is not satisfied with recovery. Customer does not complain, remains dissatisfied.

Great Service Quality at Sewell

customer loyalty, divorce finalization, excellent customer services differentiates from the rest companies, and they do it so well that despite economic recession, they kept having business.

The more ____ involved with delivering a service, the greater the degree of heterogeneity.

human labor

Which of the following contributes to the challenges of supply and demand management?

inseparability and level of customer contact

Service marketers make promises to customers, suggesting that the customer place some degree of trust in the service provider. In this way, service marketers are trying to address the challenge of the service characteristic of

intangibility

The YMCA in mid-town Atlanta has recently upgraded its facilities, including building a new Olympic-sized swimming pool and children's playground. All locations of the Atlanta "Y" are open from 6:00 am until 11:00 pm, 360 days a year. The children's playground is accessible for members only and is a fenced and secured area. During the weekdays, children under the age of 12 can engage in supervised activities at the playground, for no extra fee. Additionally, there are swimming classes for children of all ages, which is also covered by the monthly membership fee. The swimming pool has been very popular with the professionals who stop by for a swimming workout before or after work. Many of the YMCA locations are very busy all day; however, the midtown "Y" is busier during the early morning and early evenings. At a recent meeting, Malia Monroe, its manager, shared her concerns about getting more people into the "Y" at other times of the day. She asked for ideas from her staff about how to do this. She also said that the city of Atlanta had reduced the "Y"'s funding for the next year by 20%. This would cause a need for the "Y" to either gain additional members or charge more per member for the annual fee. Refer to Scenario 13.1. Ben, one of the staff members at the YMCA, suggested that the "Y" offer discounted memberships to senior citizens over the age of 65; however, they could only use the facility between the hours of 9:00 am and 4:00 pm. Ben's plan is most likely addressing the issue with ____, and relates to the ____ characteristic of services.

off-peak demand; perishability

Inseparability

production cannot be separated from its consumption customers must be present customers affect the outcome difficult to sample

Tatiana finds evaluating a new pair of jeans much easier than evaluating tennis lessons because she can try on the jeans to see exactly how they feel and fit. In other words, the jeans have many ____ qualities.

search

Service excellence

service quality is how well the whole service product bundle is provided including customer support activities

Which of the following is NOT a service product?

tennis racket

Sonequa is a concert promoter who works for singer Beyoncé. She works very hard to make sure most of Beyoncé's concerts are sold out because she understands the concept of perishability, which means

that if the tickets are not sold, seats will remain empty and they can never be sold to anyone again for that specific concert.

Customer contact

the level of interaction between provider and customer needed to deliver the service

Service

•An intangible product that involves a deed, performance, or effort that cannot be physically possessed