Marketing Chapter 13: Services
services vs goods
- Intangible - Inseparable Production and Consumption - Heterogeneous - Perishable
Increase Service Recovery
- Listen to the customer - Resolve problems quickly - Provide a fair solution
5 dimensions of quality
- Reliability - Responsiveness - Assurance - Empathy - Tangibles
Perishable
A characteristic of a service: it cannot be stored for use in the future • Services can not be produced ahead of time and stored. • If not consumed, revenue potential is lost • Must carefully manage supply and demand
Inseparable
A characteristic of a service: it is produced and consumed at the same time; that is, service and consumption are inseparable. • Cannot inspect out defects ahead of time • Consumer is part of service • Lower risk by offering guarantees or warranties
Intangible
A characteristic of a service; it cannot be touched, tasted, or seen like a pure product can. Requires using cues to make more tangible • Atmosphere • Images
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. • Establish policies, performance standards • Based upon consumer needs • Educate employees
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. • Commercials, comments from sales people • Must reflect actual service
Knowledge gap
A type of service gap; reflects the difference between customers' expectations and the firm's perception of those expectations. • Use research to understand consumers' needs • Do not assume customers are happy
Delivery gap
A type of service gap; the difference between the firm's service standards and the actual service it provides to customers. • Employees do not perform correctly • Hire well, train, monitor, and reward
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.
Heterogeneity
As it refers to the differences between the marketing of products and services, the delivery of services is more variable. -Technology/automation -Training and scripts
Emotional support
Concern for others' well-being and support of their decisions in a job setting.
Service quality
Customers' perceptions of how well a service meets or exceeds their expectations.
Empowerment
In context of service delivery, means allowing employees to make decisions about how service is provided to customers.
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.
Products
Physical good, idea, or service
Instrumental support
Providing the equipment or systems needed to perform a task in a job setting.
Service gap
Results when a service fails to meet the expectations that customers have about hot it should be delivered
Customer service
Specifically refers to human or mechanical activities firms undertake to help satisfy their customers' needs and wants.
Reliability
The ability to perform the service dependably and accurately
Tangibles
The appearance of physical facilities, equipment, personnel, and communication materials
Empathy
The caring, individualized attention provided to customers
Assurance
The knowledge of and courtesy by employees and their ability to convey trust and confidence
Responsiveness
The willingness to help customers and provide prompt service
Voice-of-customer program
VOC An ongoing marketing research system that collects customer inputs and integrates them into managerial decisions.
procedural fairness
refers to the customer's perception of the fairness of the process used to resolve complaints about service.
Product
• Emphasize the service process • Build brand image
People
• Employees • the customer • and other customers all influence quality of experience
Core service
• Focus on "core" service - Key service being purchased - British airways • Use a logo that reflects service (interactive imagery)
Promotion
• Focus on making services seem tangible - "Like a Good Neighbor, State Farm is There®," - prudential - university of phoenix • Share good performance ratings
Place
• Generally no intermediaries • Convenience is important
Price
• Prices are harder to set and justify to customers for many services • Use price to adjust demand to supply
expanded 4P's
• Strategies/applications differ in each of the 4 P's as compared to applications for physical goods -Process -People -Physical evidence
Processes
• activities which lead up to and are a part of the service
Physical evidence
• the tangible part of the service • the "servicescape"