Service Marketing ch 13 (test 3)
Homesourcing
A practice whereby customer contact jobs are outsourced into workers' homes
Experience qualities
Attributes that can be assessed only during purchase and consumption of a service
Intangibility example
Characteristic Strategy 1. Intangibility Make it tangible. - provide a physical representation. - logo, trade character, credit card. (Adding Cinderella to a castle.)
Client publics
Direct consumers of a product of a nonprofit organization
Introduction
Physical Product": A problem solving tool". "All Products are in some crucial respects intangibles. If we take intangible items, make them tangible. From totality, tangible and intangibles may not be that different."
Inseparability Example
Service is closely tied to the service provider. - training the provides the same service. Ex: Hair styles
Supplementary service
Supports the core service used to differentiate the service bundle from those of competitors
Search qualities
Tangible attributes that can be judged before the purchase of a product
Core service
The basic service experience or commodity that a customer expects to receive
Off-peak pricing
The practice of reducing prices of services used during slow periods in order to boost demand
•Opportunity cost
The value of the benefit given up by choosing one alternative over another ( the carty you did not donat to)
Heterogeneity example
get the same Service experience from one Exchange to the next. Provide preplanned "packages" so the consumer has the same same experience each purchase time. "blueprint" - the service provider uses. (waiters trained in the same way)
Perishability example
regulation of demand - run specials - pricing to groups - targeting different segments. Seat in a stadium, Can move them to the next game
Target public
•A collective of individuals who have an interest in or a concern about an organization, a product, or a social cause
Goods/Services Continuum
•A service is an intangible product that involves a deed, a performance, or an effort that cannot be physically performed •Services are usually provided through the application of human and/or mechanical efforts that are directed at people or objects •More than one-half of new businesses in the United States are service businesses, and service employment is expected to continue to grow •Long-term economic growth, lifestyle changes, and technology have been major catalysts in the growth of consumer services
How Is Nonprofit Marketing Different?
•Activities benefit clients, members, or public •Greater opportunities for creativity •Goal is not profit-driven •More difficult to judge performance •Sometimes controversial
Credence qualities
•Attributes that customers may be unable to evaluate even after purchasing and consuming a service
•Pricing should consider:
•Consumer price sensitivity (price elastase) •The nature of the transaction •Its costs
Employee Performance
•Customer-contact employees in most service industries are often the least-trained and lowest-paid members of the organization •There is a direct relationship between the satisfaction of a company's contact employees, which is manifested in a positive attitude and a good work ethic, and the satisfaction of its customers •Employee and customer satisfaction levels also have a direct relationship with customer retention and loyalty •The way to ensure that employees perform well is to train them effectively so they understand how to do their jobs •The evaluation and compensation system the organization uses also plays a part in employee performance
Service quality
•Customers' perceptions of how well a service meets or exceeds their expectations •Customers evaluate service quality •It is important for service organizations to determine what customers expect and then develop service products that meet or exceed those expectations
•Customers usually have two levels of expectations:
•Desired •What the customer really wants •Acceptable •What the customer views as adequate
General publics
•Indirect consumers of a product of a nonprofit organization
Characteristics of Services
•Intangibility •Inseparability of production and consumption •Perishability •Heterogeneity •Client-based relationships •Customer contact
Client-based relationships
•Interactions that result in satisfied customers who use a service repeatedly over time •It is important for service providers to maintain customers/clients over the long-term •Build trust •Demonstrate customer commitment •Satisfy customers •Word-of-mouth communication is a key factor in creating and maintaining client-based relationships
Nonprofit marketing
•Marketing activities conducted to achieve some goal other than ordinary business goals such as profit, market share, or return on investment
Developing Nonprofit Marketing Strategies
•Nonprofit organizations develop marketing strategies by defining and analyzing a target market and creating and maintaining a total marketing mix that appeals to that market (Target market are the doners)
Developing Marketing Mixes
•Nonprofit organizations must determine pricing in user and donor markets •May have fixed fees for users •Variable fees change depending on the user's ability to pay
Divided into two categories
•Nonprofit-organization marketing •The use of marketing concepts and techniques by organizations whose goals do not include making profits Source of Public relations and social media Source of a foster image for companies and people •Social Marketing •Promotes social causes
Service Quality Specifications
•Once an organization understands its customers' needs, it must establish goals to help ensure good service delivery •These goals, or service specifications, are typically set in terms of employee or machine performance •The most critical aspect of service quality specifications is managers' commitment to service quality •Service managers who are committed to quality become role models for all employees in the organization
•Prices can be based on the:
•Performance of specific tasks •Time spent on the task •Level of demand (hair dessers)
Delivering Exceptional Service Quality
•Providing high-quality service consistently is very difficult •Four factors that affect service quality: •Analysis of customer expectations •Service quality specifications •Employee performance •Management of service expectations
Management of Service Expectations
•Service companies must set realistic expectations about the services they provide and deliver on promises made •Advertising •Good internal communication •Word-of-mouth communication from other customers shapes expectations •Because service companies cannot manage this "advertising" directly, the best way to ensure positive word-of-mouth communication is to provide exceptional service quality
Nonprofit Marketing Objectives
•The basic aim of nonprofit organizations is to obtain a desired response from a target market •Change in values •Financial contribution •Donation of services •Nonprofit marketing objectives are shaped by the nature of the exchange and goals of the organization
Intangibility
•The characteristic that a service is not physical and cannot be perceived by the senses •Is the major characteristic that distinguishes a service from a good •Services cannot be physically possessed •The level of intangibility of a service increases the overall importance of the brand image when a consumer is deciding which to purchase
Zone of tolerance
•The difference between the two levels of expectations •Because customer-contact employees interact daily with customers, they are in good positions to learn what consumers want from the company
The Growth and Importance of Services (slide 2 of 2)
•The growth in business services can be attributed to the increasingly complex, specialized, and competitive business environment •Services as products should not be confused with the related topic of customer service •Customer service involves any human, mechanical, or electronic activity that adds value to the product •Although customer service is a part of the marketing of goods, service marketers also provide customer services
Perishability
•The inability of unused service capacity to be stored for future use •Service marketers face several hurdles in trying to balance supply and demand •Goods marketers can handle the supply-demand problem through production scheduling and inventory techniques
Promotion of Services
•The intangibility of services results in several promotion-related challenges to service marketers •Promotion of services typically includes tangible cues that symbolize the service •Compared with goods marketers, service providers are more likely to promote: price, guarantees, performance documentation, availability, and training and certification of personnel. •Personal selling can help customers visualize the benefits of a given service •Word-of-mouth communication is important in service promotion
Customer contact
•The level of interaction between provider and customer needed to deliver the service •The physical appearance of the facility is an important component of the customer's overall evaluation of the service
Inseparability
•The quality of being produced and consumed at the same time •Production of a service cannot be separated from its consumption by customers •Customers must be present at the consumption of the service and cannot take the service home •Implies a shared responsibility between the customer and service provider
Heterogeneity
•Variation in quality •Because of the nature of human behavior, it is very difficult for service providers to maintain a consistent quality of service delivery •Although many service problems are one-time events that cannot be predicted or controlled ahead of time, employee training and the establishment of standard procedures can help increase consistency and reliability •Heterogeneity usually increases as the degree of labor intensiveness increases •Equipment-based services have greater homogeneity than people-based services
•Demand-based pricing
•When demand for a service is high, the price is also high •When demand for a service is low, so is the price
