Chapter 13: Services Marketing The Intangible Product

Core service
The most basic benefit the consumer is buying
Supplementary Service
A group of services that support or embrace the core service.
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 he producer.
Customer Service
Specifically refers to human or mechanical activities firms undertake to help satisfy their customers’ needs and wants.
Intangible
A characteristic of a service; it cannot be touched, tasted, or seen like a pure product can.
Inseparable
A characteristic of a service: it is produced and consumed at same time; that is, service and consumption are inseparable.
Heterogeneity
As it refers to the differences between the marketing of products and services, the delivery of services is more variable.
Perishable
A characteristic of a service; it cannot be stored for use in the future.
Service Gap
Results when a service fails to meet the expectations that customers have about how it should be delivered.
Knowledge Gap
A type of service gap; reflects the difference between customers’ expectations and the firm’s perception those expectations.
Standards Gap
A type of service gap: pertains to the difference between the firm’s perceptions of customers’ expectations and the service standards it sets.
Delivery Gap
A type of service gap; the difference between the firm’s service standards and the actual service it provides to customers.
Communication gap
A type of service gap; refers to the difference between the actual service provided to customers and the service that the firm’s promotion program promises.
Service Quality
Customers’ perceptions of how well a service meets or exceeds their expectations.
Search Quality
Applied to goods more often, assessed before purchase
Experience Quality
Assess after purchase
Credence Quality
Assessed only with appropriate knowledge.
People Processing
Service directed at customer getting hair/nails done, massage, doctor, personal training, counseling.
Possession Processing
Service directed at customer’s physical possessions- car mechanic, dry cleaners, lawn mowers.
Mental stimulus Processing
Service directed at people’s mind *entertainment*
Information Processing
Service that use technology/brainpower directed at the customer’s assets. – Banking, Insurance, Financial planning.
Reliability
The ability to perform the service dependably and accurately
Responsiveness
The willingness to help customers and provide prompt service.
Assurance
The knowledge of and courtesy by employees and their ability to convey trust and confidence.
Empathy
The caring, individualized attention provided to customers.
Tangibles
The appearance of physical facilities, equipments, personnel, and communication materials.
Voice-of-customer Program
An ongoing marketing research system that collects customer inputs and integrates them into managerial decisions.
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.
-The customer will only put up with so much.
Empowerment
In context of service delivery, means allowing employees to make decisions about how service is provided to customers.
Emotional Support
Concern for others’ well-being and support of their decisions in a job setting.
Instrumental Support
Providing the equipment or systems needed to perform a task in a job setting. example burger places with IPads.
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.
Procedural fairness
Refers to the customer’s perception of the fairness of the process used to resolve complaints about service.