Services Marketing Final

People Processing Service
services that involve tangible actions to people’s bodies
Possession Processing Service
tangible actions to goods and other physical possessions belonging to customers
Mental Stimulus Processing Service
intangible actions directed at people’s minds
Information Processing Service
intangible actions directed at customers’ assets
Evoked Set (also called consideration set)
the set of products or brands a customer may consider in the decision-making process
Search Attributes
product characteristics that consumers can readily evaluate prior to purchase
Experience Attributes
product performance features that customers can evaluate only during service delivery
Credence Attributes
product characteristics that customers may not be able to evaluate even after purchase and consumption
Moments of Truth
a point in service delivery where customers interact with service employees or self-service equipment and the outcome may affect perceptions of service quality
High Contact Service
services that involve significant interaction among customers, service personnel, and equipment and facilities
Low Contact Service
services that require minimal or no direct contact between customers and the service organization
Servuction System (combining the terms service and production)
to describe the part of the service organization’s physical environment that is visible to and experienced by customers
Theater Metaphor
good metaphor as service delivery is a series of events that customers experience as a performance
Zone of Tolerance
the range within which customers are willing to accept variations in service delivery
the provision of a relatively narrow product mix for a particular market segment
Service Focused Strategy
the extent to which a firm offers a narrow range of services to a fairly broad market
Unfocused Strategy
serves broad markets and provides a wide range of services
Fully Focused Strategy
a firm provides a limited range of services to a narrow and specific market segment
Market Segment
group of buyers who share common characteristics, needs, purchasing behavior, or consumption patterns
Target Segment
one that a firm has selected from among those in the broader market and may be defined on the basis of several variables
establishing a distinctive place in the minds of customers relative to competing products
Market Analysis
addresses such factors as the overall level and trend of demand and the geographic location of this demand
Positioning Map
great tool to visualize competitive positioning and map developments of time and; Useful way to represent consumer perceptions of alternative products graphically
Core Service
Central component that supplies the principal, problem-solving benefits customers seek
Supplementary Service
augment the core product, facilitating it use and enhancing its value and appeal
Flower of Service
a visual framework for understanding the supplementary service elements that surround and add value to the product core
Facilitating Service
Supplementary services that aid in the use of the core product or are required for service delivery
Enhancing Service
Supplementary services that may add extra value for customers
Product Line
each service product has a different combination of service attributes and their respective performance levels
Branded House
company applies its brand name to multiple, often unrelated services
House of Brands
individual services are promoted under their own brand name without the corporate brand
a popular way to expand delivery of an effective service concept, embracing all of the seven Ps, to multiple sites, without the level of investment capital that would be needed for rapid expansion of company-owned and managed sites
acting alone or in partnership with local suppliers, the firm establishes a service factory in another country
customers from other countries are invited to come to a service factory with distinctive appeal or competencies in the firm’s home country
crew and equipment can be flown to customer’s site, or the customer’s possessions can be transported to the provider’s location
Pricing Tripod
the foundations underlying pricing strategy with costs to the provider, competitors’ pricing, and value to customer as the 3 legs
Cost-Based Pricing
the practice of relating the price charged to the cost associated with producing, delivering, and marketing a product
Value-Based Pricing
the practice of setting prices based on what customers are willing to pay for the value they believe they will receive
Competition-Based Pricing
the practice of setting prices relative to those charged by competitors
Dynamic Pricing
is also known as customized or personalized pricing; charging different customers different prices for the same product
Revenue Management
price customization that charges different value segments different prices for same product based on price sensitivity
Price Elasticity
refers to the amount of impact price has on sales
Tangible Metaphors
helps communicate the benefits of their service offerings and to emphasize key points of difference relative to competing alternatives
the process of clicking through an online advertisement to the advertiser’s destination
positive or negative comments about a service made by one individual (usually a current or former customer) to another
technique for displaying the nature and sequence of the different steps in delivery service to customers
is a more sophisticated version of flowcharting
Line of Visibility
between front stage (what customers experience) and back stage (the activities of the employees and support processes where customers can’t see them)
Service Process Redesign
encompasses reconstitution, rearrangement, or substitution of service processes
Self-Service Technologies
the ultimate form of customer involvement where customers undertake specific activities using facilities or systems provided by service supplier
Productive Capacity
the extent of the facilities, equipment, labor, infrastructure, and other assets available to a firm to create output for its customers
Queuing Systems
examines components such as waiting in line to be served, including the arrival process, service process, number of servers, number of system places and the number of customers
Waiting Lines
known as “queues” occur whenever the number of arrivals at a facility exceeds the capacity of the system to process them; a line of people, vehicles, other physical objects, or intangible items waiting their turn to be served or processed
Reservations System
in addition to waiting lines, they can be used to inventory demand
Stimulus-Response Model
the conscious and unconscious perception and interpretation of the environment influences how people feel. People’s feelings in turn drive their responses to that environment
Ambient Conditions
characteristics of environment pertaining to our five senses
Emotional Labor
the act of expressing socially appropriate (but sometimes false) emotions toward customers during service transactions
Cycle of Success
longer-term view of financial performance, seeking to prosper by investing in their people
authorizing employees to find solutions to service problems and make appropriate decisions about responding to customer concerns without having to ask a supervisor’s approval
Customer Loyalty
customer’s willingness to continue patronizing a firm over the long term, preferably exclusively, and recommending the firm’s products to others
Customer Lifetime Value (CLV)
the net present value of the stream of future contributions or profits expected over each customer’s purchases during his or her anticipated lifetime as a customer of the organization
Wheel of Loyalty
a systematic and integrated approach to targeting, acquiring, developing, and retaining a valuable customer base
Social Bond
based on personal relationships between providers and customers
Customization Bond
built when the service provider succeeds in providing customized service to its loyal customers
Structural Bond
frequently seen in B2B settings and aim to stimulate loyalty through structural relationships between the provider and the customer
Switching Costs
can be natural or created by instituting contractual penalties for switching
Service Recovery Paradox
customers who experience a service failure that is satisfactorily resolved may be more likely to make future purchases than customers without problems
Service Guarantee
a promise that if service delivery fails to meet predefined standards, the customer is entitled to one or more forms of compensation
a customer who acts in a thoughtless or abusive way, causing problems from the firm, its employees, and other customers
how efficiently service inputs are transformed into outputs that add value for customers
Service Quality
customer’s long-term, cognitive evaluations of a firm’s service delivery