Chapter 13 Study Guide

define 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.

Knowledge Gap

conduct research to better understand what customers want Example: diners at a restaurant think the portions are too small, but the manager is unaware of this complaint

GAPS Model

customer expectations for service quality → Knowledge gap → management perceptions of customer expectations → Standards gap → standard specifying service to be delivered → Delivery gap → actual service delivered → Communication gap → retailer communications about service quality

Standards Gap

set appropriate service goals and measure service performance Example: management believes that customers in a restaurant think the service is very slow, however, management allows servers to stand around and chat

define emotional support

Concern for others' well-being and support of their decisions in a job setting.

Developing a Customer service strategy

Corporate culture Hire well Train well Develop systems and processes Set high standards Measure and manage

5. Tangibles

the appearance of physical facilities, equipment, personnel, and communication material

the zone of tolerance refers to

the area between customers' expectations regarding their desired service and the minimum level of acceptable service—that is, the difference between what the customer really wants and what he or she will accept before going elsewhere.

4. Empathy

the caring, individualized attention provided to customers

Since humans' work output cannot be standardized to the same degree as the output of a machine, one substantial between the marketing of services and products is

the heterogeneity of service delivery

3. Assurance

the knowledge and courtesy by employees and their ability to convey trust and confidence

One of the most important factors for adequate service recovery is for

the provider to respond to the customer and resolve the problem quickly

Training employees in customer service as well as job tasks can be very helpful in helping a firm reduce

the standards gap as it increased their knowledge of company service policy and practices

Intangible

-Can't touch, feel, see, smell, taste. -Trying to make the intangible tangible -it is difficult for the salon to convey the benefits of a new hand cleaning technique. they cannot be touched, tasted, or seen

Perishable

-Cannot be inventoried (stored for the future) -there is a waiting line on Friday and Saturday afternoons, but those time slots cannot be inventoried for when there is no demand. they cannot be stored for later use

define knowledge gap

A type of service gap; the difference between customers' expectations and the firm's perception of those expectations.

define the service quality

Customers' perceptions of how well a service meets or exceeds their expectations.

define instrumental support

Providing the equipment or systems needed to perform a task in a job setting.

define procedural

Refers to the customer's perception of the fairness of the process used to resolve complaints about service.

define service gap

Results when a service fails to meet the expectations that customers have about how it should be delivered.

define customer service

Specifically refers to human or mechanical activities firms undertake to help satisfy their customers' needs and wants.

In which one of the following examples has the service provider worked to fairly successfully close the communication gap?

Target store advertises no more than three people waiting in line or additional registers will be opened immediately

Marissa works for a local restaurant. Each time a customer reports a compliment to a manager about an employee, the employee receives a star pin to wear. What is the advantage of the "star pin" to the restaurant and Marissa?

The star pin is a reward that reinforces the provision of excellent customer service and makes the employee feel recognized

Which of the following is not a method to reduce delivery gaps?

Threaten to terminate employees

Heterogeneity in service delivery at a restaurant can result from all of the following except

a manager who designs a specific way for all hostesses to accept reservations over the phone

define empowerment

allowing employees to make decisions about how service is provided to customers.

Ryanair advertised the lowest rates in Europe with fares of $12 between Paris and Munich. However, when Bill arrives at the airport, he had to pay $28 in taxes, $25 for one small carry on bag, $6 for a non alcoholic beverage, and $2.50 to use the restroom on the plane. Between Ryanair and the customer there is a

communication gap.

One of the best ways for managers to reduce the knowledge gap is to

conduct ongoing research and regularly talk with customers to determine what they expect to get from the brand and the firm

One of the distinct advantages of heterogeneity of services is that it enables the provider to

customize the service and not deliver a standardized, cookie cutter approach uniformly to every buyer

Replacing people with machines in the delivery of services has

decreased the rate of service heterogeneity through the use of in store kiosks

1. Reliability

the ability to perform the service dependably and accurately

A tool that is increasingly used by service providers to minimize the heterogeneity between those who deliver the service is to

employ machines, such as ATMs and service kiosks

The primary reason there is greater heterogeneity in services than in products is because

human inputs generate differences

Customer service refers to

human or mechanical activities undertaken by firms to help satisfy their customers needs and wants

Delivery Gap

improve employee performance through support, incentives, and the use of technology Example: a restaurant usually serves fresh bread made on the premises, but at the end of the day the ovens are shut down early and only cold loaves are available

define perishability

it cannot be stored for use in the future.

define intangible

it cannot be touched, tasted, or seen like a pure product can.

define inseparable

it is produced and consumed at the same time

Training employees in customer service as well as job tasks can be very helpful in helping a firm

reduce the standards gap as it increased their knowledge of company service policy and practices

Effective service recovery for an airline when facing a problem, such as a huge snowstorm that shut downs all flights for three days, includes

resolving the dilemmas quickly, responding fairly, and listening to customers and their complaints

2. Responsiveness

the willingness to help customers and provide prompt service

Training employees in customer service as well as job tasks can be __?__ in helping a firm reduce __?__

very helpful the standards gap as it increased their knowledge of company service policy and practices

Inseparable

-Produced and consumed at the same time -customers tend to get upset when their favorite manicurist is not working. -Usually can't "try it out" -Can't return a service.

Which of the following are potential sources of heterogeneity of service quality at a hair salon?

-The same hair stylist working at different times of the day, week, or month -Two different hair stylist working at the same location

Heterogeneous

-Variability: Quality of the service depends on the person performing the service. -Challenge: How do you improve consistency? -on fridays and saturdays, the staff is different and the normal process is shortened from 55 to 45 minutes per customer. Due to the human element it tends to deviate from use to use

types of gaps

1. Knowledge Gap 2. Standards Gap 3. Delivery Gap 4. Communication Gap

Five Service Quality dimensions

1. Reliability 2. Responsiveness 3. Assurance 4. Empathy 5. Tangibles

Characteristics of services

1. inseparable 2. intangible 3. perishable 4. heterogeneous

The good - service continuum

100% physical good emphasis <------blend of both------> 100% service emphasis

define communication gap

A type of service gap; the difference between the actual service provided to customers and the service that the firm's promotion program promises.

define standards gap

A type of service gap; the difference between the firm's perceptions of customers' expectations and the service standards it sets.

define delivery gap

A type of service gap; the difference between the firm's service standards and the actual service it provides to customers.

define voice-of-customer (VOC) program

An ongoing marketing research system that collects customer inputs and integrates them into managerial decisions.

define 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.

define heterogeneity

As it refers to the differences between the marketing of products and services, the delivery of services is more variable.

Mary went to the local supermarket, where she shopped regularly, to purchase her groceries for the week. Which of the following was a delivery gap that resulted in a service failure by the grocery store?

Mary had to wait a long time in the checkout line because the clerk kept making errors using the cash register

define zone of tolerance

The area between customers' expectations regarding their desired service and the minimum level of acceptable service—that is, the difference between what the customer really wants and what he or she will accept before going elsewhere

Service recovery

The importance of customer service Why customers quit The perfect transaction and the circle of service The "Be Nice" and "Be Right" side of customer service Tracking service deviations Dealing with angry customers

An effective method to assess customer service expectations is to __?__ in which management is __?__

analyze customer complaint behavior told by buyers what dissatisfies them

Communications gap

be realistic in telling potential buyers about the services that can be provided and manage those customer expectations effectively A restaurant advertises they are open for breakfast, but when guests arrive on Sunday morning, there is a sign on the door indicating they only open for brunch at 11:00

For the marketing manager to be able to deliver consistent quality service, it is imperative to

set measurable goals that are based on customer expectations