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52 Cards in this Set
- Front
- Back
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The selected parts of the US service sector
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generated over $6 TRILLION in 2006, and accounted for 68% of the US GDP!
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The United States is both the world’s premier services exporter and
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– with over $200 billion in annual imports – its premier export destination as well.
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Conceptual Definition of a Service Product
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A service is a change in the condition of a person, or a good belonging to some economic entity, brought about as the result of the activity of some other economic entity, with the approval of the first person or economic entity.
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Simple Service
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A standard service whose real output can often be measured in physical units or counts; e.g. a traditional haircut or basic phone service
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Composite service
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A product that embodies several distinct services that are produced together (by virtue of regulations, production process, safety or hygiene requirements, or industry practice). The customer is not free to pick and choose among the several services in the compost – the consumer buys all or none: e.g. a conventional hotel room rental includes maid service, salon haircuts include shampooing etc.
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Service Bundle
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A product containing a collection of services negotiated between the service provider and the customer and whose composition may vary by customer, e.g. traditional phone service plus call waiting and/or called ID etc., a bundle of information services that can be transmitted through a common medium (cable, satellite) and that may include voice, data, and/or visual services
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Intangibility
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The characteristics of a service that means customers can’t see, touch, or smell the good service.
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Perishability
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The characteristic of a service that makes it impossible to store for later sale or consumption.
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Capacity Management
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The process by which orgs adjust their offering in attempts to manage demand
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Inseparability
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Production and consumption of services cannot be separated, therefore, it is not possible to store services in inventory.
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Variability
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From the perspective of the customer, the characteristic of a service that means that even the same service performed by the same individual for the same customer can vary.
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Heterogeneity
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From the perspective of the service provider, the characteristic of a service that means that it is difficult for humans to replicate service quality.
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Disintermediation can be effective for services because:
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-It is sometimes useful to eliminate people from the service encounter
-Technology can sometimes provide better service than people -Of service heterogeneity |
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Augmented Services
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The core service plus additional services provided to enhance value (e.g., offering a warranty for the work, or the ability to pay with a credit card).
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The core service product is
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risk reduction!
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Service Counter
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occurs when the customer comes into contact with the organization
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"Moment of Truth"
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occurs next and is that moment of time within the service encounter when the customer will decide to come away with either a positive or negative impression of the service encounter.
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Service encounter has both
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a social contact dimension and a physical dimension (the physical evidence portion of the experience, termed the servicescape).
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Servicescape
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the actual physical facility where the service is performed, delivered, a nd consumed.
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Service quality is about
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“excellence” in meeting people’s needs via social interaction
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Exceeding people’s service quality expectations
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is the path to satisfaction
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Exaggerated (i.e., unrealistic) customer expectations account for
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about 75% of the complaints reported by service businesses
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Effective services recovery concerns
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how to effectively deal with customer complaints.
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Service quality and customer satisfaction
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are different things
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Customer Satisfaction
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refers to a consumer’s judgment as to how fulfilling an exchange is both cognitively and emotionally.
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Quality
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involves a comparison to excellence by the customers.
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** Service quality does NOT involve
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emotions (among other differences)!**
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Order of customer satisfaction
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Quality --> Satisfaction --> Purchase Intention
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• Search Qualities
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Product characteristics that consumers can examine prior to purchase
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o Experience Qualities
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Product characteristics that consumers can determine during or after consumption.
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Credence Qualities
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Product characteristics that are difficult to evaluate even after they have been experienced.
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**Note that both of these would apply to dental services!
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Experience and Credence Qualities
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o **Note that service blueprint makes
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visual the service delivery product.
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• The 5 Service Quality Gaps Include:
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1. The gap between consumer expectations and mgt perceptions of consumer expectations.
2. The gap between mgt perceptions of consumer expectations and the quality standards set by the firm. 3. The gap between established quality standards and service delivery 4. The gap between service quality standard and consumer expectations 5. The gap between expected service and perceived service. |
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**Note that there is no gap in the model for the difference between
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employee perceptions of satisfaction and consumers’ expectations
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Critical Incident Technique:
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A method for measuring service quality in which marketers use customer complaints to identify critical incidents – specific face-to-face contacts between customers and service providers that cause problems and lead to dissatisfaction
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Tangibles: Physical evidence of the service --
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makes services difficult to evaluate
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Responsiveness:
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Willingness or readiness of employees to provide the service
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Assurance
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Knowledge/competence of employees and ability to convey trust and confidence
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Empathy:
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Caring and individual attention provided by employees
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These require a certain amount of emotional intelligence:
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Responsiveness, assurance, and empathy
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The key to effective service recovery
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is an acceptable apology
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The 3 characteristics of a “good” apology are:
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Acknowledgement
Regret Commitment to reform |
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Intangibility marketing challenges
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service process is usually not protectable by patents
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3 New Marketing Mix Elements
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People, physical evidence, process
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Uh-Avatar
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It’s a graphic representation of you inside the world. In Second Life, avatars typically look more or less like humans, though they can be modified in such detail – different hair, eyes, body type, even clothes – that each on is unique sometimes bizarre. You see the game from the perspective of your avatar viewing whatever is in your avatar’s line of sight and seeing or hearing only the conversations of others nearby.
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***Note that all these are forms of service marketing, including retailing!
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People, place, idea marketing
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Techniques to figure out if customers are worth “pampering” or not:
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Coding
Routing Targeting Sharing **Resolving is NOT one of these! |
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Coding
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Some companies grade customers based on how profitable their business is. They give each account a code with instructions to service staff on how to handle each category.
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Routing
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Based on the customer’s code, call centers route customers to different queues. Big spenders are whisked to high-level problem solvers. Others may never speak to a live person at all.
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Targeting
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Choice customers have fees waived and get other hidden discounts based on the value of their business. Less valuable customers may never even know the promotions exist.
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Sharing
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Companies sell data about your transaction history to outsiders. You can be slotted before you even walk in the door, since your buying potential has already been measured.
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