Chapter 1 Services Marketing

Which of the following statements describes a marketing implication that results from the intangibility of services? -All of these are correct. -Services cannot be inventoried. -Services cannot be easily patented. -Services cannot be readily displayed. -The actual costs of a "unit of service" are hard to determine.

-All of these are correct

Which of the following is an example of a tangible component provided by a hotel? -Guest rooms -Express check-out -Room service -Guaranteed reservations -Wake-up call

-Guest rooms

On his way to work today, Terry saw a billboard for a physician's group that specialized in vascular surgery. On his social media feed, there was a display ad for a medical clinic that performed similar surgery. Then in his mail, he got a brochure from yet another medical clinic asking him if he wanted to get rid of ugly varicose veins. Which trend that influenced the development of services marketing concepts and strategies is illustrated here? -Professional firms are placing increased emphasis on providing services -Increased competition in medical and professional services -The increasing importance of service industries to the U.S. and world economies -The increase of government regulation of professional service industries -The growth in database marketing

-Increased competition in medical and professional services

Which of the following statements about services is true? -Marketing and managing services presents issues and challenges not faced in manufacturing and packaged goods companies. -Service economy produces services at the expense of other sectors. -Service jobs are low paying and menial. -Service production is labor intensive and low in productivity. -Service is a necessary evil for manufacturing firms.

-Marketing and managing services presents issues and challenges not faced in manufacturing and packaged goods companies.

An attorney who charges a client for a missed appointment is taking into account the __________ characteristic of services. -Heterogeneity -Perishability -Simultaneous production and consumption -Incomparability -Intangibility

-Perishability

Yesterday, Mike went to the dentist for his 6-month check-up. Two weeks before he went to the dentist, he called the office to make an appointment. The day before his check-up, the office's receptionist called him to confirm his appointment. When Mike arrived at the office, he checked in with the receptionist and then waited in the waiting room for 15 minutes, reading a magazine, before being greeted by the dental hygienist, who escorted him to an examination room. The dentist entered the room, greeted Mike, examined Mike's teeth, took a set of x-rays, and asked the dental hygienist to clean Mike's teeth. When his teeth were cleaned, the hygienist told Mike he should return in 6 months for another check-up. Mike experienced the _____ element of the dental office's services marketing mix. -Process -Product -Personalization -Place -Physical Evidence

-Process

The core offerings of hospitals, hotels, and banks are primarily deeds and performances and therefore are_________________. -Services -Experiences -Attributes -Goods -Benefits

-Services

Two roommates both registered for an introduction to business class. By the middle of the semester, one roommate found his instructor so boring that he was thinking of changing his major to history. The other roommate had a charismatic teacher and looked forward to going to class. This heterogeneity of instruction demonstrates: -That customer service depends on employee actions -The fact services cannot be readily communicated or displayed -How customers affect each other -Why services cannot be inventoried -How difficult it is to synchronize supply and demand with service

-That customer service depends on employee actions

Which of the following trends has directly influenced the development of services marketing concepts and strategies? -The fact that manufacturing firms are placing increased emphasis on providing services -The decreasing importance of service industries to the U.S. and world economies -The growth in information-based technology -Decreased competition in professional services -None of these is correct.

-The fact that manufacturing firms are placing increased emphasis on providing services

Without good mailing lists, businesses cannot engage in effective direct-marketing advertising. On average 20 percent of the U.S. population moves annually. Return Path is a company that provides changes of addresses to businesses. It takes a business's mailing list, compares it to address changes that it gathers daily in its database, and makes any necessary corrections. Return Path is a part of which trend in the services marketing industry? -The increasing importance of service industries to the U.S. and world economies -The fact that direct marketing firms are placing increased emphasis on providing services -Increased competition in the direct-mail industry -The growth in the use of technology-based services -The decrease of human interaction as a result of widespread use of technology-based services

-The growth in the use of technology-based services

Which of the following is an intangible component of a car repair shop? -Barrel for storing recyclable motor oil -The training the mechanic has received -Replacement parts -Employee uniforms -Customer waiting area

-The training the mechanic has received

Services HETEROGENEOUS -delivery and customer satisfaction depend on employee and customer _____ -quality depends on many ________ factors -no sure knowledge that the service delivered matches what was _____ and promoted

-actions -uncontrollable -planned

Heterogeneity: -Because services are performances, frequently produced, consumed, and often co-created by humans, no two services will be precisely _____. -The employees delivering the service frequently are the service in the customer's eyes, and people may differ in their ______ from day to day or hour to hour.

-alike -performance

Trends in Service Marketing: -Increased ______ in professional services -________ firms are placing increased emphasis on providing services. -Service and __________ (tech increases)

-competition -Manufacturing -technology

________ qualities: characteristics that the consumer may find impossible to evaluate even after purchase and consumption (appendix operations, brake relinings on a car, and computer software updates) (few consumers possess medical, mechanical, or technical skills sufficient to evaluate whether these services are necessary or are performed properly, even after they have been prescribed and produced by the provider)

-credence

Customer Focus: A Critical Theme: -All strategies should be developed with an eye on the _______. -All implementations should be carried out with an understanding of their ____ on the customer. -All decisions regarding new services, communications, operations, and human resources should ___ the customer'

-customer -impact -integrate

Why service Marketing? -Services dominate United States and worldwide _______. -Service as a business imperative in ______ -focused businesses -Deregulated industries and _______ service needs -Service _____ is different -Service leads to ______

-economies -goods -professional -marketing -profits

__________ qualities: attributes that can be discerned only after purchase or during consumption. (vacations and restaurant meals are high in these qualities because their attributes cannot be fully known or assessed until they have been purchased and are being consumed)

-experience

Service and Technology: Technology... -is the ________ of many service offerings -provides new ways to ________ service -enables both ______ and ______ -extends the _____ reach of services -provides approaches for delivering ____ services in more accessible, convenient, productive ways -facilitates basic customer service functions -facilitates ______ by offering a direct vehicle for making purchases -provides an easy way for customers to learn and do research about products and companies examples: ordering pizza with app, uber, streaming a movie

-foundation -deliver -customers; employees -global -existing -transactions

Simultaneous Production and Consumption: -While most _____ are produced first then sold and consumed, many services are sold first and then produced and consumed simultaneously.

-goods

Service Industries: -______ Care: hospital, medical practice, dentistry, eye care -______ Services: accounting, legal, architectural -_____ Services: banking, investment advising, insurance -________: restaurant, hotel or motel, bed and breakfast, ski resort, rafting -________: airline, travel agency, theme park -________: hair styling, pest control, plumbing, lawn care, counseling, health club, interior design

-health -professional -financial -hospitality -travel -others

The first time Barry brought his car to Auto Lube to have the oil changed he was very satisfied with the service. The service manager consulted him several times while his car was being serviced, asked him if there were any problems with the car, recommended when additional services should be performed and answered questions directly and politely. However, when Barry went back to Auto Lube after three months to have his oil changed again, he was not satisfied with the service. The manager spoke to him only when he arrived and when he paid his bill. In addition, the manager was impatient and unfriendly during the interaction. Barry's experience at Auto Lube illustrates the ______________ of services. -Heterogeneity -Intangibility -Simultaneous production and consumption -Perishability -Divisibility

-heterogeneity

The most distinguishing characteristic of services is: -Intangibility -Heterogeneity -None of these is correct. -Comparability -Divisibility

-intangibility

Characteristics of Services Compared to Goods: -_________ -_________ -________ production and consumption -__________

-intangibility -heterogeneity -simultaneous -perishability

Very few products are purely ______ or totally ______. -services tend to be more intangible than manufactured products (training of hair stylist) -products tend to be more tangible than services (a guest room in a hotel; car)

-intangible -tangible

The _________ is a service! -The customer perception that service quality is declining is that the increasing use of technology is perceived by many as LESS service because there is no ________ _______. -Some negative outcomes include: security fraud, employee reluctant to use technology at work.

-internet -human interaction

Services INTANGIBLE: (key determinant of whether an offering is a service) -cannot be _____ -cannot be easily ________ -cannot be readily _______ or _________ -______ is difficult

-inventoried -patented -displayed; communicated -pricing

Expanded mix for services: the 7 P's -___________: all human actors who play a part in service delivery and thus influence the buyer's perceptions: namely, the firm's personnel, the customer, and other customers in the service environment. •Uniforms; Name tags; Training •Example - Airline Company Service Marketing "people" = customers, pilots, flight attendants, baggage handlers

-people

Expanded mix for services: the 7 P's: ______ ______: The environment in which the service is delivered and where the firm and customer interact, and any tangible components that facilitate performance or communication of the service. •Clean restrooms in restaurants; Marathon Medal; Diploma; Rotary Swag

-physical evidence

When Alicia and Jordan dined at Formia Ristorante, a contemporary Italian restaurant in New Jersey, they both enjoyed Formia's coy, smart and embracing atmosphere. Formia creates this atmosphere with a single large dining room that measures 20 by 60 feet and contains 14 roomy tables. Ceiling fans slowly swirl as candlelight dances across the tables that are attentively cared for by servers. Vertical pink and white florid patterns emerge from old wainscoting. Finally, Formia's two-page menu offers guests a range of pasta, chicken, veal, and seafood entrees, in addition to nightly specials that are handwritten and presented on large index cards. Alicia and Jordan experienced the _____ element of Formia Ristorante's services marketing mix. -Place -Product -Production -Process -Physical evidence

-physical evidence

Expanded Mix for Services: 7 P's -_______: the actual procedures, mechanisms, and flow of activities by which the service is delivered—the service delivery and operating systems. •Example: •Appointment reminder •Check in •Procedure •Check out •Follow up •Use of technology/apps to improve service

-process

Challenges and Questions for Service Marketers: -Defining and improving ______ -Designing and _______ new services -Communicating and maintaining a ___ image -Accommodating fluctuating _______ -Motivating and sustaining employee _______ -Setting _______ -Organizing to facilitate strategic and tactical ______ making -Finding a balance between standardization and _______ -Protecting new service ______ from competitors -Communicating quality and ______ to customers -Ensuring the delivery of consistent quality _______

-quality -testing -consistent -demand -commitment -prices -decision -personalization -concepts -value -service

Perishability: -refers to the fact that services cannot be ____, stored, resold, or returned. -in contrast to goods that can be stored in inventory or resold another day, or even returned if the consumer is unhappy.

-saved

________ qualities: attributes that a customer can determine before purchasing a product. (include color, style, price, fit, feel, hardness, smell) (cars, clothing, furniture and jewelry are high in these qualities because their attributes can almost completely be determined and evaluated before purchase)

-search

Classification of Properties of Services: -______ qualities -_____ qualities -______ qualities

-search -experience -credence

In the simplest terms, _____ are deeds, processes, and performances. -Services -Attributes -Goods -Benefits -Experiences

-services

When they go away on vacation, some dog owners choose to leave their dogs in posh pet resorts that offer a variety of activities for the dogs, such as swimming pool frolics, nature walks, and hayrides. The dog owners pay around $17 per night for basic boarding at the pet resorts and up to an additional $20 for the other activities, which would be collectively classified as: -Goods -Attributes -Satisficers -Services -Values

-services

________: are deeds, processes, and performances provided, coproduced or cocreated by one entity or person for and/or with another entity or person.

-services

Which of the following statements describes a marketing implication that results from the intangibility of services? -Services cannot be inventoried -Customers participate in and affect the transaction -Service quality depends on many uncontrollable factors -Services can be readily communicated -There is no sure knowledge that the service delivered matches what was planned and promoted

-services cannot be inventoried

Services PERISHABLE: -difficult to synchronize ______ and ______ with services -cannot be ______ or ________ -services for any given time-period cannot be sold or delivered at a _______ _______

-supply; demand -returned; resold -later date

________ marketing mix: elements an organization controls that can be used to satisfy or communicate with customers (4 P's) -product, price, place, promotion

-traditional

Services SIMULTANEOUS PRODUCTION AND CONSUMPTION: -customers participate in and affect the ________ -customers affect _______ _______ -employees affect the service _______ -decentralization may be _______ -mass production is _________

-transaction -each other -outcome -essential -difficult

Which of the following products is LEAST high in experience qualities? -Wedding dress -A homecoming party DJ -Catered banquet -Pet grooming

-wedding dress