Shared Flashcard Set

Details

Services Marketing
Notes for first Exam
84
Marketing
Undergraduate 4
03/31/2011

Additional Marketing Flashcards


 

 


 

Cards

Term

______% of services are a part of the GDP

Definition
80%
Term
Primary Industry
Definition
agriculture, mining, forestry, fishing
Term
Secondary Industry
Definition
manufacturing
Term
Tertiary industry
Definition
servicing
Term

·         Agriculture is getting _______ in terms of labor

Definition
smaller
Term

·         Why Services Matter? (5)

Definition

o   Services dominate U.S. and worldwide economies

o   Services are growing dramatically

o   Service leads to customer retention and loyalty

o   Service leads to profits

o   Services help manufacturing companies differentiate themselves

Term

·         Zero-sum game

Definition

o   Add up profits and losses and the net sum is zero

§  Example is Poker

Term

·         Eight Central Paradoxes of Technology

Definition

Control/Chaos

Freedom/enslavement

New/Obsolete

Competence/ Incompetence

Efficiency/ Inefficiency

Fulfills/Creates Needs

Assimilation/Isolation

Engaging/ Disengaging

Term

·         Why do firms focus on services? (3)

Definition

o   Services can provide higher profit margins and growth potential than products

o   Customer satisfaction and loyalty are driven by service excellence

o   Services can be used as a differentiation strategy in competitive markets

Term
Old View of Service
Definition

§  Service is a technical, after-sale function that is provided by the service department

Term
New View of Service
Definition

§  Service includes every interaction between any customer and anyone representing the company

Term

·         Service Can Mean all of These (4)

Definition

o   Service as a product

Customer service

o   Services as value added for goods

o   Service embedded in a tangible product

Term

·         10 Practices of Exceptional Service

Definition

o   Eliminate irritants

o   Perform as promised

o   Manage the customer’s experience

o   Make customers insiders

o   Create ownership

o   Have fun

o   Recover remarkably

o   Involve everyone in improvement

o   Make teamwork work

o   Do everything better

 

Term

·         Characteristics of services compared to goods

Definition

o   Intangibility

o   Heterogeneity

o   Simultaneous production and consumption

o   Perishability

Term

·         Challenges for Services

Definition

o   Defining and improving quality

o   Ensuring the delivery of consistent quality

o   Designing and testing new services

o   Communicating and maintaining a consistent image

o   Accommodating fluctuating demand

o   Motivating and sustaining employee commitment

o   Coordinating marketing, operations, and human resource efforts

o   Setting prices

o   Finding a balance between standardization versus customization

Term

·         Implications of intangibility (4)

Definition

o   Services cannot be inventoried

o   Services cannot be easily patented

o   Services cannot be readily displayed or communicated

o   Pricing is difficult

Term

·         Implications of Heterogeneity (3)

Definition

o   Service delivery and customer satisfaction depend on employee and customer actions

o   Service quality depends on many uncontrollable factors

o   No sure knowledge that the service delivered matches what was planned and promoted

Term

·         Implications of Simultaneous Production and Consumption (5)

Definition

o   Customers participate in and affect the transaction

o   Customers affect each other

o   Employees affect the service outcome

o   Decentralization may be essential

o   Mass production is difficult

Term

·         Implications of Perishability (2)

Definition

o   Difficult to synchronize supply and demand

o   Services cannot be returned or resold

Term
7 P's
Definition
  • Price
  • Product
  • Place
  • Promotion
  • People
  • Physical Evidence
  • Process
Term

§  Servicescape

Definition

·         What physical evidence is available that provides a physical determination of the service

o   Example: how the bathrooms are

Term

·         Wal-Mart sees itself as a _______

Definition

pipeline

o   They don’t want merchandise sitting around

o   They check production every 15 minutes

 

Term
Customer Gap
Definition

o   Difference between customer expectations and perceptions of service received

§  Expected Service <-Service Gap-> Perceived Service

Term
Services don't measure up because of......
Definition
customer gap
Term
Customer Gap is Caused by (5)
Definition

§  Not knowing what customers expect

§  Not having the right service designs and standards

§  Not delivering to service standards

§  Not matching performance to promises

Term
Provider Gap 1
Definition
(Knowledge/Listening Gap)
Term
Provider Gap 2
Definition
(Service Design and Standards Gap)
Term
Provider Gap 3
Definition
(Service Performance Gap)
Term
Provider Gap 4
Definition
(Communication Gap)
Term

·         Key Factors Leading to Provider Gap 1 (Knowledge/Listening Gap)

Definition

o   Inadequate marketing research orientation

o   Lack of upward communication

o   Insufficient relationship focus

Inadequate service recovery

Term

·         Key Factors Leading to Provider Gap 2 (Design & Standards Gap)

Definition

o   Poor Service Design

o   Absence of Customer- driven Standards

o   Inappropriate Physics Evidence and Servicescape

Term

·         Semiotics

Definition

o   Any and every object sends out messages

o   Everything has to have to same thing/ consistent

§  Integrated marketing communication

Term

·         Key Factors Leading to Provider Gap 3 (Performance Gap)

Definition

Deficiencies in Human Resource Policies

o   Failure to match supply and demand

o   Customers not Fulfilling Roles

o   Problems with intermediaries

Term
• Key Factors Leading to Provider Gap 4 (Communications Gap)
Definition

o   Lack of Integrated Service Marketing Communications

o   Inefficient Management of Customer Expectations

Overpromising

 

o   Inadequate Horizontal Communications

o   Inappropriate Pricing

Term

·         Ways to use Gap Analysis

Definition

o   Overall Strategic Assessment

o   Specific Service Implementation

Term

·         Search Qualities

Definition

o   Attributes a consumer can determine prior to purchase of a product

Term

·         Experience Qualities

Definition

o   Attributes a consumer can determine after purchase (or during consumption) of a product

Term

·         Credence Qualities

Definition

o   Characteristics that may be impossible to evaluate even after purchase and consumption. Relying on other people’s opinions becomes important

Term

·         Stages in Consumer Decision Making and Evaluation of Service (6)

Definition

o   Need recognition

o   Information search

o   Evaluation of alternatives

o   Purchase

o   Consumer experience

o   Post experience evaluation

Term

Issues to Consider in Examining the Consumer’s Service Experience (6)

Definition

·         Services as processes

·         Service provision as drama

·         Service roles and script

·         The compatibility of service customers

·         Customer coproduction

Emotion and mood

Term

·         The Five Dimensions of Service Quality

Definition

reliability

assurance

tangibles

empathy

responsiveness

 

Term

o   Reliability

Definition

§  Providing service as promised

§  Dependability in handling customers’ service problems

§  Performing services right the first time

§  Providing services at the promised time

§  Maintaining error-free records

Term

o   Assurance

Definition

§  Employees who instill confidence in customers

§  Making customers feel safe in their transactions

§  Employees are consistently courteous

§  Employees have the knowledge to answer customer questions

Term

o   Tangibles

Definition

§  Modern equipment

§  Visually appealing facilities

§  Employees who have a neat, professional appearance

§  Visually appealing materials associated with the service

Term

o   Empathy

Definition

§  Giving customers individual attention

§  Employees deal with customers in a caring fashion

§  Having the customer’s best interest at heart

§  Employees understand the needs of their customers

§  Convenient business hours

Term

o   Responsiveness

Definition

§  Keeping customers informed as to when services will be performed

§  Prompt service to customers

§  Willingness to help customers

§  Readiness to respond to customers’ requests

Term
Top Box =
Definition
Very Satisfied
Term
Second Box=
Definition
Satisfied
Term
Bottom 3 Boxes=
Definition
Neutral is very dissatisfied
Term
The service encounter is an opportunity to
Definition

§  Built trust

§  Reinforce quality

§  Build brand identity

§  Increase loyalty

Term

·         Common Themes in Critical Service Encounters Research

Definition

o   Recovery: employee response to service delivery system failure

o   Adaptability: employee response to customer needs and requests

o   Coping: employee response to problem customers

o   Spontaneity: unprompted and unsolicited employee actions and attitudes

Term
Possible Levels of Customer Expectations (5)
Definition
  • Ideal expectations/Desires
  • Normative (“should”) expectations
  • Experience-based expectations
  • Acceptable expectations
  • Minimum tolerable expectations
Term
Zone of Tolerance
Definition

 

-- can be wide or narrow
-- can change over time
-- can vary among individuals
-- may vary with the type of service/service dimensions
Term
A customer is....
Definition

 

Anyone who receives the company’s services, including:

external customers (business customers, suppliers, partners, end consumers)
internal customers (other departments, fellow employees)
Term
Service Quality
Definition

 

Perceived overall excellence of the service provided relative to the expected quality.
Term

 

Service quality assessments are formed on judgments of:
Definition

 

process quality
interaction quality  
outcome quality  
physical environment quality
Term
Types of service encounters (3)
Definition
emote encounters, telephone encounters, face-to-face encounters
Term

o   The encounter is an opportunity to (4)

Definition

§  Built trust

§  Reinforce quality

§  Build brand identity

§  Increase loyalty

Term

·         Common Themes in Critical Service Encounters Research (4)

Definition
  • Recovery
  • Adaptability
  • Coping
  • Spontaneity
Term

·         Gadgeteer

Definition

o   Geared toward teens and twenty-something’s. Emphasize cell phones, music, and movies, home theater, gaming, and mobile audio

Term

·         Relationship Marketing

Definition

o   A philosophy of doing business, a strategic orientation: focus on keeping current customers and improving relationships with them

Term

In Relationship Marketing the focus is less on attraction

Definition
more on retention and enhancement of customer relationships
Term
• The Bucket Theory of Marketing
Definition

o   As you get more customers, you might still lose customers

o   Decreased purchases by some customers and also increased purchases from some customers

Term

·         Customer Goals of Relationship Marketing

Definition

o   Acquiring, satisfying, retaining, enhancing

§  The goal of relationship marketing is to move customers up the ladder

Term

Releationship Marketing Benefits for Customers (4)

Definition

§  Receipt of greater value

§  Confidence benefits

§  Social benefits

§  Special treatment benefits

Term

Relationship Marketing Benefits for Firms (3)

Definition

§  Economic benefits

§  Customer behavior benefits

   §  Human resource management benefits

Term

·         The customer pyramid

Definition

o   Goes from most profitable customer to the least profitable

Term

·         Strategies for Building Relationships, Leading to Customer Loyalty (3)

Definition

o   Core Service Provision

o   Switching Barriers

o   Relationship Bonds

Term
Stages in Marketing Research Process
Definition
  1. Define Problems and Research Objectives
  2. Develop Measurement Strategy
  3. Implement Research Program
  4. Collect and Tabulate Data
  5. Analyze and Interpret Findings
  6. Report Findings
Term
Common Means for Answering Questions
Definition

 

Ask customers directly
Observing customers
Get information from employees and front line service providers
Database marketing research
Term

 

Customer complaint

 solicitation

Definition

 

Identify dissatisfied customers; identify most

common categories of service failures

Term

 

“Relationship”

  Surveys

Definition

 

Assess company’s performance compared to

competitors; identify service improvement

priorities; track service improvement over time

Term

 

Post-Transaction

 Surveys

Definition

 

Obtain customer feedback while service

experience is fresh; act on feedback quickly if

negative patterns develop

Term

 

Customer Focus

 Groups

Definition

 

Use as input for quantitative surveys; provide a

forum for customers to suggest service

improvement ideas

Term

 

“Mystery Shopping”

 of  Service

 Providers  

Definition

 

Measure individual employee service behaviors for

use in coaching, training, performance evaluation,

recognition and rewards; identify systemic strengths

and weaknesses in service

Term

 

Employee Surveys

Definition

 

Measure internal service quality; identify employee

perceived obstacles to improve service; track

employee morale and attitudes

Term

 

Lost Customer

Research

Definition

 

Determine the reasons why customers defect

Term

 

Future Expectations

Research

Definition

 

Forecast future expectations of customers; develop

and test new service ideas

Term

 

Platinum Tier

Definition

 

most profitable customers, heavy users, not overly price sensitive, willing to invest in and try new offerings, and committed customers of the firm

Term

 

Gold Tier

Definition

 

Lower profitability, want price discounts, not as loyal. May be heavy users who minimize risk by working with multiple vendors.

Term

 

Iron Tier

Definition

 

essential customers that provide the volume needed to utilize the firm’s capacity. Spending levels, loyalty, and profitability are not substantial enough for special treatment

Term

 

Lead Tier

Definition

 

cost the firm money.  Demand more attention than their spending and profitability merits. sometimes problem customers—complaining about the firm to others and tying up firm resources.

Term
Not all customers are good relationship customers
Definition

 

Wrong segment
Not profitable in the long term
Difficult customers
Term
Core Service Provision
Definition

 

service foundations built upon delivery of excellent service:
satisfaction, perceived service quality, perceived value
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