Chapter 13– Marketing Final

service
any intangible offering that involves a deed, performance or effort that cannot be physically possessed
customer service
specifically refers to human or mechanical activities firms undertake to help satisfy their customer’s needs and wants (adds value to products)
Service-product continuum
most offering lie somewhere in the middle and provide some service and some good (hybrid of the two)
Factors that distinguish services from goods
intangible, inseparable, heterogeneous, perishable
intangible
cannot be touch, tasted, or seen like a normal product would be. requires using cues to make more tangible: (atmosphere, pictures)
inseparable
produced and consumed at the same time, cannot inspect out defects ahead of time, consumer is part of service, lower risk by offering warranties and guarantees
heterogenous
different from time to time, technology/automation helps along with training and scripts
perishable
they cannot be stored for use in the future, if not consumed revenue is lost, and supply and demand must be managed carefully
5 dimensions of service quality
reliability, responsiveness, assurance, empathy, and tangibles
reliability
perform the service dependably and accurately
responsiveness
willingness to help customers and provide prompt service
assurance
knowledge and courtesy by employees and their ability to convey trust and confidence
empathy
caring, individualized attention provided to customers
tangibles
appearance of physical facilities, equipment personnel, and communication materials
Service Gaps Model
encourage systematic examination of all aspects of the service delivery process and prescribe the steps needed to develop an optimal service strategy
knowledge gap
reflects the difference between customers expectations and the firm’s perception of those customer expectations; do not assume customers are happy
standards gap
pertains to the difference between the firm’s perceptions of customer’s expectations and the service standards set; establish policies or performance standards based on consumer needs, educate employees
delivery gap
difference between the firm’s service standards and the actual service it provides to customers. hire well, train, monitor and perform
communication gap
refers to the difference between the actual service provided to customers and the service that the firm’s promotion program promises. commercials must reflect actual service
expanded 4 P’s
Price, Product, Promotion, Place, Processes, Physical Evidence, People
People
employees, customer, and other customers influencing the quality of the experience
Physical Evidence
tangible part of the service, servicescape
Processes
activities which lead up to and are a part of the service
Product
emphasize the service process, build brand image
Place
generally no intermediaries, convenience is important
Price
Prices are harder to set and justify to consumers for many services, use price to adjust supply and demand
promotion
focuses on making services seem more tangible, share good performance ratings. (ex: like a good neighbor, state farm is there)
Emphasizing the core service
focus on the key service, create a logo that highlights that service (interactive imagery) (state farm logo)
service recovery
listen to customer, resolve problems quickly, provide a fair solution
distributive fairness
pertains to a customers perception of the benefits he or she received compared with the costs
procedural fairness
customers perception of the fairness of the process used to resolve complaints about service