MKT 3350 CH. 13

service

-any tangible offering that involves a deed, performance or effort that cannot be physically possessed -method to maintain sustainable competitive advantage

SERVICE QUALITY DIMENSIONS tangible

-appearance of physical facilities, equipment, personnel, communication materials

knowledge gap: understanding customer expectations

-can reduce knowledge gap -undertake customer research and increase interaction or communication between managers and employees -customers expectations are based on knowledge and experience -expectations can vary depending on type of service and situation

FACTORS DIFFERENTIATING SERVICE FROM GOODS intangible

-cannot be touched, tasted, or seen like a pure product can -highly challenging for marketers -difficult to convey benefits of services -offer cues to help customers experience and perceive service positively

emotional support

-concern for others well-being and support of their decisions in a job setting

an easy way to manage customer expectations is to..

-coordinate how the expectations is created and the way the service is provided

TYPES OF FAIRNESS distributive fairness

-customers perception of the benefits he/she recieved compared with the costs (inconvenience or loss)

ways to close knowledge gap

-determining what customers really want by doing research using marketing metrics such as service quality and zone of tolerance

SERVICE GAP MODEL communication gap

-difference between actual service provided to customer and service that the firms promotion program promises

SERVICE GAP MODEL delivery gap

-difference between firms service standards and actual service it provides to customers

SERVICE RECOVERY STRATEGIES finding a fair solution (type of fairness)

-distributive -procedural

service recovery

-effective recovery efforts can increase customer satisfaction, purchase intentions, positive word of mouth

standards gap: setting service standards

-employees must be thoroughly trained to complete tasks and how to treat guests -managers need to set an example of high service standards

how to close communication gap

-firm must be realistic about services they can provide -manage customer expectations effectively

how delivery gap can be closed

-getting employees to meet/exceed service in delivery by empowering service providers -provide support and incentives -use of technology

the communication gap: communicating the service promise

-if a firm promises more than it can deliver, customer expectations wont be met -dissatisfied customers are more likely to tell others about bad service

key to distributive fairness

-listening carefully to customer -customer typically wants tangible resolution

SERVICE GAP MODEL standards gap

-pertains to the difference between firms perceptions of customers expectations and the service standards it sets

HOW TO CLOSE DELIVERY GAP use of technology

-provide wider variety of services, greater degree of control by customer over the service, and the ability to obtain information -improves providers efficiency and reduce servicing costs -maintain competitive advantage

SERVICE GAP MODEL knowledge gap

-reflects differences between customer expectations and firms perception of those expectations

service gap

-results when service fails to meet the expectations that customers have about how it should be delivered

FACTORS DIFFERENTIATING SERVICE FROM GOODS inseparable production and consumption

-service is produced and consumed at the same time -customers rarely have opportunity to try service before they purchase it and can't return it

SERVICE RECOVERY STRATEGIES listening to customers and involving them in the service recovery

-service providers should welcome the opportunity to be a sympathetic ear, listen carefully and appear/be eager to rectify the situation to ensure it doesnt happen again -when customer participates in the resolution, the results are more positive

how to close the standards gap

-setting appropriate standards -training employees to meet/exceed standards -measuring service performance

to define the zone of tolerance, firms ask questions about each service quality dimension that relate to:

-the desired and expected level of service for each dimension from low to high -customer perceptions of how well the focal service performs and how well it accomplished service performance from low to high -importance of each service quality dimension

SERVICE RECOVERY STRATEGIES resolving problems quickly

-the longer it takes to resolve, the more irritated the customer will become and more people they will tell about bad service

TYPES OF FAIRNESS procedural fairness

-the perceived fairness of the process used to resolve them -customers want efficient complaint procedures over outcomes they influence -providers empowered with procedural flexibility to solve complaints

HOW TO CLOSE DELIVERY GAP support and incentives for employees

-to ensure service is delivered properly, management needs to support service suppliers in several ways and give them incentives

FACTORS DIFFERENTIATING SERVICE FROM GOODS heterogeneous

-variability in a service quality -marketers can use micromarketing segmentation to customize service -can replace people with machines

ways to support and reward employees

1) emotional support 2) instrumental support 3) support from managers must be consistent and coherent throughout organization 4) provide rewards for excellent customer service

reasons that the dependence of services has grown

1) less expensive to maintain in less developed countries 2) people have high value of convenience and leisure 3) people demand more specialized services

effective service recovery demands:

1) listening to customers and involving them in the service recovery 2) providing a fair solution 3) resolving the problem quickly

percentage that services account for in US GDP

76%

marketing research provides

a means to better understand customer service expectations and their perceptions of service quality -expensive and extensive

SERVICE QUALITY DIMENSIONS reliability

ability to perform the service dependably and accurately

some of the best service providers include

amazon zappos LL Bean nordstrom

economies of developed countries such as the US have...

become increasingly dependent on services

FACTORS DIFFERENTIATING SERVICE FROM GOODS perishable

cannot be stored for use in future, therefore firms must watch demand/supply

voice-of-customer (VOC) program

collects customer input and integrates them into managerial decisions

service quality

customers perceptions of how well a service meets or exceeds their expectations

the service gap model

designed to encourage systematic examination of all aspects of service delivery process and prescribes the steps needed to develop an optimal service strategy

HOW TO CLOSE DELIVERY GAP empowering service providers

empowerment- allowing employees to make decisions about how service is provided to customers -more important when service is individualized

to resolve a problem quickly...

firms need clear policies, adequate training for employees -empowered employees

zone of tolerance

important metric to evaluate how well firms perform on five service quality dimensions -refers to the area between customer expectations regarding desired service and minimum level of acceptable service

a very straight forward and inexpensive method of collecting consumer perceptions of service quality..

is to gather them at the time of the scale -another method--> making effective use of customer complaint behavior

service model gaps

knowledge gap standards gap delivery gap communication gap

SERVICE QUALITY DIMENSIONS assurance

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

expectations are created through:

promotions advertising personal selling

customer service

refers to human or mechanical activities that firms undertake to help satisfy their customer needs and wants

service quality dimensions

reliability responsiveness assurance empathy tangible

factors differentiating services from goods

services are: intangible inseparable heterogeneous perishable

instrumental support

systems and equipment to deliver the service properly ex: store kiosks

SERVICE QUALITY DIMENSIONS empathy

the caring, individualized attention provided to customers

SERVICE QUALITY DIMENSIONS responsiveness

willingness to help customers and provide prompt service