62 terms

CH 12 marketing

A service
is any intangible offering that involves a deed, performance or effort that cannot be physically possessed.
customer service
specifically refers to human or mechanical activities firms undertake to help satisfy their customers' needs and wants. By providing good ______, firms add value to their products or services.
is viewed as a method to maintain a sustainable competitive advantage
A service
cannot be shown directly to potential customers, which makes it difficult to promote
Product Marketing
Services Marketing Differs from _______
they cannot be touched, tasted or seen like a pure product can.
when you get a physical examination, you see and hear the doctor, but the service itself is ______, which can be highly challenging to marketers.
ii. Makes it difficult to convey the benefits of services, so the images marketers use to promote the product show the benefits or value that a service provides.
Another difference between services and products is that _____ are produced and consumed at the same time; that is, service and consumption are inseparable
Because the service is inseparable from its consumption, customers rarely have the opportunity to try the_____before they purchase it.
After the service has been performed, it can't be _______
many hotels use satisfaction guarantees to overcome the problem of inseparability of ______
The more humans are needed to provide a service, the more likely there is to be_______in the service's quality.
inferior service
In many cases, the problem can even be fixed before the product gets into customers' hands but an______can't be recalled; by the time the firm recognizes a problem, the damage has been done.
a hairstylist may give a bad haircut because they went out the night before but they still offer a better service than the under-trained stylist working in the next station over
Services are__________ in that they cannot be stored for use in the future.
The __________of services provides both challenges and opportunities to marketers in terms of the critical task of matching demand and supply.
the perishablility of a service
iii. As long as the demand for and the supply of the service match closely, there is no problem, but unfortunately this perfect matching rarely occurs.
service gap
Customers have certain expectations about how a service should be delivered. When the delivery of that service fails to meet those expectations, a ____results
The Gaps Model
is designed to encourage the systematic examination of all aspects of the service delivery process and prescribe the steps needed to develop an optimal service strategy.
knowledge, standards, delivery and communication
The four service gaps are:
Knowledge gap:
reflects the difference between customer's expectations and the firm's perceptions of those customer expectations. Firms can close this gap by matching customer expectations with actual service through research.
Customers' expectations are based on their_____and experiences. Expectations vary according to the type of service and situation
occasions of service usage
The service provider needs to not only know and understand the expectations of the customers, but also have some idea of the_________
Evaluating service quality:
to meet or exceed customer's expectations, marketers must determine what those expectations are. Service quality often is difficult to evaluate because of the intangibility of the service
Customers generally use 5 distinct service dimensions to determine overall service quality: reliability, responsiveness, assurance, empathy, and tangibles.
: the ability to perform the service dependably and accurately
the willingness to help customers and provide prompt service
the knowledge of and courtesy by employees and their ability to convey trust and confidence
the caring, individualized attention provided to customers
the appearance of physical facilities, equipment, personnel, and communication materials
Zone of tolerance:
the area between customers' expectations regarding their desired service and the minimum level of acceptable service—the difference between what the customers wants and what he/she will accept before going elsewhere.
Standards Gap:
an example of high service standards needs to be set by some sort of management, which will permeate throughout the organization, and the employees must be thoroughly trained not only to complete their specific tasks but also how to treat guests
standard gap needs to
To deliver consistently high-quality service, firms must set specific, measurable goals based on customers' expectations; to help ensure that quality, the employees should be involved in the goal setting
quality goal should be _____
Commitment to service quality
service providers take their cues from management
Delivery Gap
where the "rubber meets the road", where the customer directly interacts with the service provider
Delivery Gap
. Even if there are no other gaps, a _____ always results in a service failure.
Delivery Gap
_________can be reduced when employees are empowered to act in the customers' and the firms' best interests and supported in their efforts so they can do their jobs effectively as well as technology.
1. Empowering employees
2. Reduce delivery gaps
3. Provide support and incentives
4. Use of technology
Methods to reduce delivery gaps
Empowering service providers:
means allowing employees to make decisions about how service gets provided to customers. When frontline employees are authorized to make decisions to help their customers, service quality generally improves.
Empowering service providers
can also be difficult and costly and becomes more important when the service is more individualized
Providing support and incentives:
a service provider's job can often be difficult, especially when customers are unpleasant or less than reasonable, but the service provider cannot be rude or offensive just because the customer is
Providing support and incentives:
"service with a smile." To ensure that service is delivered properly, management needs to support the service provider in several ways.
Use of technology:
has become an increasingly important facilitator of the delivery of services. Firms have invested heavily in technologies that have enabled customers to buy more quickly, more easily and with more information than in the past.
Some firms are using _______to personalize their service.
Another use of _____in the service delivery process is a retail store assistant (RSA).
Using _____ to facilitate service delivery can provide many benefits, such as access to a wider variety of services, a greater degree of control by the customer over the services, and the ability to obtain information.
Communication Gap
: poor communication between marketers and their customers can result in a mismatch between an ad campaign or a salesperson's promises and the service the firm can actually offer.
communication gap
i. If a firm promises more than it can deliver, customers' expectations will not be met. Dissatisfied customers are also likely to tell others about the underperforming service
The communication gap
can be reduced by managing customer expectations.
The communication gap
Promising only what you can deliver, or possibly even a little less, is an important way to control the _________
Service recovery:
effective service recovery efforts can significantly increase customer satisfaction, purchase intentions, and positive word of mouth, though customers' post-recovery satisfaction levels usually fall lower than their satisfaction prior to the service failure
Service recovery
_____. entails: listening to the customer, providing a fair solution, and resolving the problem quickly.
Listening to customers
firms don't find out about service failures until a customer complains
Finding a fair solution:
most people realize that mistakes happen. But when they happen, customers want to be treated fairly whether than means distributive or procedural fairness.
Distributive fairness
pertains to a customer's perception of the benefits he or she conceived compared with the costs (inconvenience or loss)
Procedural fairness:
with regard to complaints, procedural fairness refers to the perceived fairness of the process used to resolve them
The key to distributive fairness
is listening carefully to the customer. Regardless of how the problem is solved, customers typically want tangible restitution, not just an apology
Resolving problems quickly:
the longer it takes to resolve a service failure, the more irritated the customer will become and the more people he or she is likely to tell about the problem
To resolve service failures quickly,
i. To______ firms need clear policies, adequate training for their employees and empowered employees
1. Calm the customer by actively listening and empathizing.
2. Repeat the problem so that the customer knows he or she was heard or understood.
3. Empathy statements
4. Solve the problem by indicating what action will be taken to resolve the issue.
5. Timely response should be taken in order to ensure that the problem is resolved in a defined span of time that is acceptable to both parties
The CREST Method of Resolving Service Failures: