STCO 426 Week 2

Perishability

A distinguishing characteristic of services in that they cannot be saved, their unused capacity cannot be reserved, and they cannot be inventoried.

intangibility

A distinguishing characteristic of services that makes them unable to be touched or sensed in the same manner as physical goods.

inseparability

A distinguishing characteristic of services that reflects the interconnections among the service provider, the customer involved in receiving the service, and other customers sharing the service experience.

heterogeneity

A distinguishing characteristic of services that reflects the variation in consistency from one service transaction to the next.

perceived control perspective

A model in which consumers evaluate services by the amount of control they have over the perceived situation.

physical cue

A motivation, such as thirst, hunger, or another biological cue that provides a stimulus to the consumer.

internal search

A passive approach to gathering information in which the consumer's own memory is the main source of information about a product.

external search

A proactive approach to gathering information in which the consumer collects new information from sources outside the consumer's own experience.

critical incident

A specific interaction between a customer and a service provider.

nonpeak demand development

A strategy in which service providers use their downtime to prepare in advance for peak periods or to market to different target markets that follow different demand patterns than the firm's traditional market segment.

customer management

A strategy service personnel can implement that minimizes the impact of other customers on each individual customer's service experience (e.g., separating smokers from nonsmokers in a restaurant).

reservation system

A strategy to help smooth demand fluctuations in which consumers ultimately request a portion of the firm's services for a particular time slot.

third parties

A supply strategy in which a service firm uses an outside party to service customers and thereby save on costs, personnel, etc.

customer participation

A supply strategy that increases the supply of service by having the customer perform part of the service, such as providing a salad bar or dessert bar in a restaurant.

linear compensatory approach

A systematic model that proposes that the consumer creates a global score for each brand by multiplying the rating of the brand on each attribute by the importance attached to the attribute and adding the scores together.

lexicographic approach

A systematic model that proposes that the consumer make a decision by examining each attribute, starting with the most important, to rule out alternatives.

multisite locations

A way service firms that mass-produce combat inseparability, involving multiple locations to limit the distance the consumers have to travel and staffing each location differently to serve a local market.

evoked set

Alternatives that the consumer actually remembers at the time of decision making.

commercial cue

An event or motivation that provides a stimulus to the consumer and is a promotional effort on the part of the company.

commercial cues

An event or motivation that provides a stimulus to the consumer and is a promotional effort on the part of the company.

social cue

An event or motivation that provides a stimulus to the consumer, obtained from the individual's peer group or from significant others.

social cues

An event or motivation that provides a stimulus to the consumer, obtained from the individual's peer group or from significant others.

factories in the field

Another name for multisite locations

script perspective

Argues that rules, mostly determined by social and cultural variables, exist to facilitate interactions in daily repetitive events, including a variety of service experiences.

systematic evaluation

Choosing among alternatives by using a set of formalized steps to arrive at a decision.

nonsystematic evaluation

Choosing among alternatives in a random fashion or by a "gut-level feeling" approach.

activity based costing

Costing method that breaks down the organization into a set of activities, and activities into tasks, which convert materials, labor, and technology into outputs.

switching costs

Costs that can accrue when changing one service provider to another.

cognitive dissonance

Doubt in the consumer's mind regarding the correctness of the purchase decision.

script congruence

Occurs when the actual scripts performed by customers and staff are consistent with the expected scripts.

consideration set

Of the brands in the evoked set, those considered unfit (e.g., too expensive, too far away, etc.) are eliminated right away. The remaining alternatives are termed the consideration set.

service dominant logic

Philosophical viewpoint that the primary role of marketers is to deliver service. Consequently, goods are simply a means of rendering a service to the customer.

expansion preparation

Planning for future expansion in advance and taking a long-term orientation to physical facilities and growth.

creative pricing

Pricing strategies often used by service firms to help smooth demand fluctuations, such as offering "matinee" prices or "early bird specials" to shift demand from peak to non-peak periods.

search attributes

Product attributes that can be determined prior to purchase.

experience attributes

Product attributes that can be evaluated only during and after the production process.

credence attributes

Product attributes that cannot be evaluated confidently even immediately after receipt of the good or the service.

complimentary services

Services provided for consumers to minimize their perceived waiting time, such as driving ranges at golf courses, arcades at movie theaters, or reading materials in doctors' offices.

Personal sources of information

Sources such as friends, family, and other opinion leaders that consumers use to gather information about a service.

capacity sharing

Strategy to increase the supply of service by forming a type of co-op among service providers that permits co-op members to expand their supply or service as a whole.

customization

Taking advantage of the variation inherent in each service encounter by developing services that meet each customer's exact specifications.

consumption process

The activities of buying, using, and disposing of a product.

standardization

The goal of standardization is to produce a consistent service product from one transaction to the next.

shortage

The need for a product or service due to the consumer's not having that particular product or service.

information search

The phase in the prepurchase stage in which the consumer collects information pertaining to possible alternatives.

evaluation of alternatives

The phase of the prepurchase stage in which the consumer places a value or "rank" on each alternative.

Tangible clues

The physical characteristics that surround a service to assist consumers in making service evaluations, such as the quality of furnishings, the appearance of personnel, or the quality of paper stock used to produce the firm's brochure.

physical evidence

The physical characteristics that surround a service to assist consumers in making service evaluations, such as the quality of furnishings, the appearance of personnel, or the quality of paper stock used to produce the firm's brochure.

physical evidence/tangible clues

The physical characteristics that surround a service to assist consumers in making service evaluations, such as the quality of furnishings, the appearance of personnel, or the quality of paper stock used to produce the firm's brochure.

social risk

The possibility of a loss in personal social status associated with a particular purchase.

financial risk

The possibility of a monetary loss if the purchase goes wrong or fails to operate correctly.

psychological risk

The possibility that a purchase will affect an individual's self-esteem.

physical risk

The possibility that if something does go wrong, injury could be inflicted on the purchaser.

performance risk

The possibility that the item or service purchased will not perform the task for which it was purchased.

problem awareness

The second phase of the prepurchase stage, in which the consumer determines whether a need exists for the product.

unfulfilled desire

The second phase of the prepurchase stage, in which the consumer determines whether a need exists for the product.

awareness act

The set of alternatives of which a consumer is aware.

other customers

The term used to describe customers who share a service experience.

expectancy/disconfirmation theory

The theory proposing that consumers evaluate services by comparing expectations with perceptions.

stimulus

The thought, action, or motivation that incites a person to consider a purchase.

Consumer Decision Process

The three-step process consumers use to make purchase decisions; includes the pre purchase stage, the consumption stage, and the post purchase evaluation stage.