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20 Cards in this Set
- Front
- Back
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Most goods are ______ to evaluate and most services are _____ to evaluate for consumers
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easy; hard
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Goods are high in ____ attributes, services are high in ____ attributes...and both are moderate in ____ attributes
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search; credence; experience
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Four distinctive characteristics of services
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1. intangible (cannot be seen)
2. cannot be inventoried or perishable (cannot have stock..like haircut) 3. Often produced and consumed simultaneously-inseparable (haircut example) 4. Difficult to standardize (high in variability in services..not like buying same brand of something) |
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2 ways increase tangibility of services
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maid leaves name
Allstate and Flo |
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Inability to inventory (services)
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1. Perishability a problem when demand fluctuates--imagine restaurant has 20 tables and open for 5 hours
2. Service providers generally want to smooth demand shift to other periods (happy hours), increasing acceptable waiting time (sit at bar), cultivating nonpeak demand (breakfast time!) |
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Services difficult to standardize so ____ and ___essential
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hiring and training..McDonalds and Disney
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But we shouldn't standardize everything
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like different Hooters
Standardize backstage and customize front office |
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Satisfaction generally seen as economically beneficial, but debate over how much
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we should delight customers
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People made more mistakes in Operation game
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when anti-mimic condition of service...lack of mimicry can be psychologically taxing
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American Customer Satisfaction Index (ACSI)
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The definitive benchmark for how consumers feel about the products they buy
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Should we aim to exceed expectations (3 things)
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1. Exceeding expectations can subsequently cause expectations to increase--setting bar too high
2. If we then fail to meet those raised expectations, we may lose customers, revenue and profit (but sets bar high for competitors too..raise expectations only if can deliver) 3. wIf we devote more resources to raised expectation, may lose profit |
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Managing expectations examples
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Dominoes and Home Depot-Guaranteed but made it not so more...:Listerine and Airborne
Southwest promises are easier to keep |
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Prescription: ______ never make a promise you cannot keep
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Almost never
Bold promises might favorably bias perceived quality when the consumption/service experience is ambiguous (placebo effects)...this class will change your life! Bold promises dangerous when easy to evaluate (deliver promises 30 minutes) |
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______ before _____
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consistency before brilliance
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Managing memories
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Memories are malleable (don't think of lines)..can be influenced by advertising viewed post experience (amusement park commercials will show the rides, not the lines)...but remind them of lots of positives!
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Availability Heuristic
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Tendency to treat the ease with which we can recall examples of an event as indicative of the frequency of that event (english words and k)...we can improve evaluates by soliciting negative feedback..if give 20 blanks and can only give 5, they will think it wasn't so bad
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Retrospective evaluations of experience follow a _______/____ rule
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peak/end
Average of peak and final level of pleasure/pain Colonoscopy study as example |
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Managing customer dissatisfaction
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Want to retain mildly dissatisfied customers
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When to apologize
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Generally, quick apologies best
but for some serious, don't snap apologize..let the offended person vent first |
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Service recovery paradox
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There are situations in which post-recovery satisfaction is greater than satisfaction prior to the service failure (can be very nice after dripping water..bring extra drink at restaurant..opp for satisfaction)..expectations following service failure tend to be low, so from this point of view, mild serivce failures can actually be opp to increase satisfaction
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