Mktg 12

result of applying human or mechanical efforts to people or objects

• Intangability
• Inseparable
• Heterogeneous
• Perishable

inability of services to be touched, seen tasted, heard, or felt in the same manner that goods can be sensed

• characteristic that can be easily assessed before purchase
• EX: color of automobile

• characteristic that can be assessed only after use
• EX: meal in a restaurant

• characteristic that consumers may have difficulty assessing even after purchase becuase they do not have the necessary knowledge or experience
• EX: medical or consulting services

• inability of the production and consumption of a service to be separated; consumers must be present during the production
• EX: haircut

variability of the inputs and outputs of services, which causes services to tend to be less standardized and uniform than goods

inability of services to be stored, warehoused or inventoried

• Reliability
• Responsiveness
• Assurance
• Empathy
• Tangibles

model identifying 5 gaps that can cause problems in service delivery and influence customer evaluations of service quality

• gap b/w what customers want & what mgmt thinks customers want
• results from a lack of understanding or a misinterpretation

• gap b/w what mgmt thinks customers want & the quality specifications that mgmt develops to provide the service
• result of mgmts inability to translate customer needs

• gap b/w service quality specifications & the service that is actually provided
• result of inability of mgmt & employees to do what should be done

• gap b/w what company provides & what customer is told it provides
• result of communication gap

• gap b/w service that customers receive and the service they want
• can be positive or negative (EX doc office visit)

most basic benefit the consumer is buying

group of services that support or enhance the core service

• People processing (health care)
• Possession processing (lawn care)
• Mental Stimulus processing (theatre performances)
• Information processing (insurance)

strategy that uses technology to deliver customized services on a mass basis

• Stressing tangible cues
• Using personal information sources
• Creating a strong organizational image
• Engaging in postpurchase communication

• Revenue-oriented pricing
• Operations-oriented
• Patronage-oriented

• Level 1: pricing incentives to encourage loyalty; least effective
• Level 2: pricing incentives + seeks to build social bonds
• Level 3: above 2 + structural bonds (offering value-added services not available elsewhere)

treating employees as customers and developing systems and benefits that satisfy their needs

an org that exists to achieve some goal other than the usual biz goals of profit, market share or return on investment

effort by nonprofit orgs to bring about mutually satisfying exchanges with target markets