Service marketing

Increasing use of technology is perceived by many customers as less service because there is no human interaction.

Which of the following statements has been suggested as a plausible explanation for the customer perception that service quality is declining?

Temporary service intensifiers

_____ consists of short-term, individual factors that make a consumer more aware of the need for service.

Perishability

_____ refers to the fact that services cannot be saved, stored, resold, or returned.

production

Which of the following is NOT an element of the traditional marketing mix?

Mass production of services is difficult.

Which of the following is a marketing implication that results from the heterogeneity of services?

Effective service guarantees

1. Unconditional 2. meaningful 3.East to Understand and communicate 4. East to consume and collect

What are the customer goals of relationship marketing?

Arrow start from bottom' Strangers-> Acquiring Acquaintances->Satisfying Friends-> Retaining Partners->Enhancing

What is customer delight?

Customer delight is surprising a customer by exceeding his or her expectations and thus creating a positive emotional reaction.

Satisfaction

Customer's evaluation of a product or service in terms of whether that product or service has met the customer's needs and expectations."

What is the service recovery paradox?

Customers that receive a great service recovery are more satisfied than if the firm had not messed up

Customer Gab

Difference between customer expectations and perceptions Expected Service->Perceived Service

What is the zone of tolerance?

Difference between desired and adequate service

What are the core dimensions of e-service quality?

Efficiency- ease and speed of accessing website Fulfillment - promise about order delivery System availability - correct technical functioning Privacy- safe and protects customer information

Service recovery strategies to fix the problem

Encourage and track Complaints Learn from recovery experiences Learn from lost customers Fail-safe the service

What are factors that influence predicted services?

LISTING -Implicit service Service-related cues Price, tangible attributes Word-of -mouth___ Parties other than firm "unbiased" Past __experience__ Compare across industries

What are factors that influence desired services?

LISTING Explicit service promises - by organizations Personal - firm's salesperson, service personnel No personal- web pages, ads, brochures Careful: overpromising!

Four characteristics of services

LISTING Intangibility Can't be "touched"; an act or performance Heterogeneity No service is delivered exactly the Same Way Simultaneous____ Production and Consumption -Customer must be present when employee delivers the service Perishability _Cannot be stored; exists at a certain time

What are factors that influence adequate service expectations?

LISTING Perceived service- From other providers Increases adequate service level Situational factors Uncontrollable (weather) Personal -(personal emergency) Predicted service_ Individual transaction

Dimensions of service quality

LISTING Reliability Customer's evaluation of a product or service if it met the customer's expectations." Assurance _Knowledge of employees and their ability to inspire trust and confidence Tangibles physical facilities and equipment Empathy -Caring -Relationship Marketing Responsiveness -Willingness to help

What are the 7 P's of services marketing?

LISTING People Physical Evidence Process Product Price Place Promotion

What are the benefits for firms in relationship marketing?

Listing -Economic Benefits(increase revenues, reduced marketing and administrative costs) -Customer Behavior Benefits (word of mouth, mentors to other customers) -Human resource Management benefits(easier jobs for employee)

What are the levels of relationship bonds?

Listing Level 1: Financial Bonds Easy to initiate Short-term rather than long-term gains Level 2: Social Bonds Brand Communities Level 3: Customization Bonds Customer intimacy - Example - Pandora Level 4: Structural Bonds Provider services designed into service delivery system Example - just-in-time distribution program

What are the 4 different types of complainers?

Listing Passives: Least likely to take action Vociers: actively complain to provider, Positive consequences Irates: Negative WOM Activists: COMPLAIN ON ALL LEVELS

What narrows or increases the zone?

Narrows- High importance, reliability Wide- Tangibles, low importance

How has technology influenced the development of services?

New Service Offerings- Self-driving car New Delivery Methods Bill paying, transactions, information seeking Enabling Customers and Employees Immediate access to information, Responsiveness Dark Side_" of Technology Privacy, confidentiality, loss of human contact

predicted service

One factor that influences adequate service is _____, the level of service that customers believe they are likely to get.

What are the different types of fairness?

Outcome fairness -match level of dissatisfaction -Customers expect equity Procedural Fairness -Fair policies, rules, and timeliness as part of complaint process Interactional fairness -Treat customers politely, with care, and honesty

relationship

Sam Goody, a tape, compact disc, and video store, has a frequent buyer program called Replay that rewards members a $15 gift certificate for every $150 in purchases made at Sam Goody. In addition, Replay members receive a coupon each month for a 20-25 percent discount on the purchase of an unlimited number of CDs and/or cassettes from a specific music category. By having a frequent buyer program, Sam Goody is using _____ marketing.

Properties of a service - 3 qualities

SearchQualities determine prior to purchase of a product Ex)Color, style, price, fit, feel, hardness Experience Qualities determine after purchase (or during consumption) of a product Ex)Taste, wear ability,comfort Credence Characteristics that may be impossible to evaluate even after purchase and consumption EX) Computer software updates, surgeries

improving communications between sales and operations departments

Service companies can close provider gap 4 by:

What are services?

Services are Deeds_, processes, and Performances provided or coproduced by one entity or person for another entity or person.

Gab 4

The Communication Gap -No strong internal marketing -Lack of educating customers -Over promising -Inappropriate pricing

Relationship challenges - the customer is not always right

The Customer is Not Always Right -Wrong segment people - Bad credit not crediable -Difficult customers -Dysfunctional customers Ending Business Relationship endings Firing customers

Gab 1

The Listening Gap -Lack of customer expectation, no focus on service quality -Lack of communication between Frontline employees -> managers - Lack of Relationship marketing, market segmentation

Gab 2

The Service Design and Standards Gap -Unrealistic customer expectations? -Design doesn't meet customer and employee needs

Gab 3

The Service Performance Gap -Deficiencies in human resource policies -Failure to match supply and demand -Problems with service _intermediaries_Franchises, retailer, agents

personal service philosophy

The _____ is the customer's underlying generic attitude about the meaning of service and the proper conduct of service providers.

ideal

The highest possible level of customer expectations is _____ expectations.

interactive

The marketing that goes on between an insurance agent and a current customer that is buying car insurance for a new teenage driver is an example of _____ marketing.

sales promises

The sources of customer expectations are market-controlled factors such as: