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What are services?
Intangible products that are exchanged directly from the producer to the customer.
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What are the 4 ways services differ from products? (I.I.P.V.)
Intangibility, Inseparability, Perishability, Variability.
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Intangibility
means customers cant see, touch, or smell good service.
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Inseperability
means it is impossible to separate the production of a service from the consumption of that service (ex: a haircut is produced when a client arrives.)
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Perishability
makes it impossible to store for later sale or consumption.
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Variability
means even the same service performed by the same individual for the same customer can vary.
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How do consumers judge service quality?
- -Social Elements
- -Physical Elements
- -Servicescape
- -Search Qualities
- -Experience Qualities
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Servicescape
The actual physical facility where the service is performed, delivered, and consumed. Quality cues increase consumer beliefs they are receiving a high-quality service.
Servicespace atmospherics can increase service quality
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Service Encounter
The actual interaction btwn the customer and the service provider.
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Search Qualities
Product characteristics that the consumer can examine prior to purchase.
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What is the Gap Analysis model?
A marketing research method that measures the difference between a customer's expectations of a service quality and what actually occurred.
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What are the 5 service gaps?
- Gap 1 - poor understanding of customer preferences
- Gap 2 - poor management standards
- Gap 3 - current performance is sub-standard
- Gap 4 - unrealistic promises
- Gap 5 - unrealistic consumer expectations
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Experience qualities
product characteristics that customers can only judge during or after consumption. ex: the taste of a latte
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Critical Incident Technique
- A method for measuring service quality where marketers use customer complaints to identify critical incidents and improve their service act.
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SERVQUAL
A multi-item survey that measures customers perceptions of service quality through it's 5 dimensions.
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What are the SERVQUAL 5 dimensions?
- 1 - Tangibles
- 2 - Reliability
- 3 - Responsiveness
- 4 - Assurance
- 5 - Empathy
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Core Service
The basic benefit of having a service performed. ex: basketball game
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Supplementary (Augmented) Service
The core service PLUS additional services provided to enhance value. ex: valet parking at the basketball game.
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Four categories of service processes
- 1 - people
- 2 - possessions
- 3 - mental stimulus
- 4 - information
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Disintermediation
Using self-service technologies (ATM) to eliminate the interaction between customers and salespeople. The goal is to minimize negative service, reduce service variability, and reduce costs.
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Credence Qualities
Product characteristics that are difficult to evaluate even after they have been experienced.
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Capacity Management
The process by which organizations adjust their offerings in an attempt to match demand.
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