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Services MKT Chapters 8-15
Terms in this set (208)
The process by which an individual adapts to the values, norms, and required behavior patterns of an organization
The use of physical evidence to create service environments and its influence on the perceptions and behaviors of individuals.
stimulus organism response (SOR) model
A model developed by environmental psychologists to help explain the effects of the service environment on consumer behavior, describes environmental stimuli, emotional states, and responses to those states.
The various elements of the firm's physical evidence
The recipients of the set of stimuli in the service encounter, includes employees and customers.
consumers' reaction or behavior in response to stimuli
The emotional state that reflects the degree to which consumers and employees feel satisfied with the service experience
The emotional state that reflects the degree to which consumers and employees feel excited and stimulated
The emotional state that reflects the degree to which consumers and employees feel in control and able to act freely within the service environment.
Consumer responses to the set of environmental stimuli that are characterized by a desire to stay or leave an establishment, explore/interact with the service environment or ignore it, or feel satisfaction or disappointment with the service experience.
The use of physical evidence to design service environments
Services in which employees are physically present while customer involvement in the service production process is at arm's length
-require very little of the customer's physical presence to complete the service (mail order, telephone and utility services)
Service environments that are dominated by the customer's physical presence, such as ATMs or postal kiosks.
service environments in which customers and providers interact
The distinctive atmosphere of the service setting that includes lighting, air quality, noise, music, and so on.
Environmental dimensions that include layout of the facility, the equipment, and the firms furnishings.
Signs, symbols, and artifacts
Environmental physical evidence that includes signage to direct the flow of the service process, personal artifacts to personalize the facility, and the style of decor
Overall perceptions of the servicescape formed by employees and customers based on the physical environmental dimensions
a composite of mental images of the service firm's physical facilities
Consumers who make purchase decisions based primarily on price
Consumers who wish to be pampered and attended to and who are much less price sensitive
Consumers who seek convenience over price and personal attention
Consumers who support smaller or local firms as opposed to larger or national service providers
Internal response moderators
The three basic emotional states of the SOR model that mediate the reaction between the perceived servicescape and customers' and employees' responses to the service environment.
Consumers opinions about the provider's ability to perform the service
The process of categorizing servicescapes based on previous experiences
Meaning inferred from the firm's use of physical evidence
Feelings that are a result of the servicescape
Responses to the firm's physical environment based on pain or comfort
Responses to the servicescape that are typically described as approach and avoidance behaviors
The three primary visual stimuli that appeal to consumers on a basic level
Visual agreement associated with quieter, plusher, and more formal business settings
visual effects associated with exciting, cheerful, and informal business settings
The actual color such as red, blue, yellow, or green
The lightness and darkness of the colors
The brightness or dullness of the colors
The logic that demonstrates the relationship between satisfied service employees and the economic performance of the firm
The various "parts" played by contact personnel who perform dual functions of interacting with the firm's external environment and internal organization.
subordinate service roles
The low-status jobs within service organizations where the employee feels subordinate not only within the organization but also subordinate to the consumer
A bad fit between a person's self- perception and the specific role the person must play in an organization.
Disagreements that arise when a customer requests services from the service provider that violate the rules of the organization
Disagreements between clients that arise because of the number of clients who influence one another's experience; these have to be resolved by the service provider.
Willful and malicious acts by service providers designed to ruin the service
Climate for service
The shared perception of the service practices, procedures, and kind of behaviors that get rewarded
The provision of the basic infrastructure and technology to enable service providers to deliver the desired service.
The support provided by other departments in the service organization that allow service providers to do their job.
The service HR wheel
The HR functions that together support the creation of a climate for service.
The brand that is created in the market for staff that is analogous to the brand in the customer market
Training focused on teaching service providers their operational role in delivering the service
Training focused on teaching service providers how to deal with customers
Categorizing customers to enable providers to more easily process them and remove stress
Extrinsic rewards such as pay are only part of the reason that people work
Intrinsic rewards, such as enjoying the job itself, receiving recognition from coworkers and supervisors, or eve the satisfaction of meeting goals are often just as powerful motivators
Giving discretion to front-line personnel to meet the needs of consumers creatively
Empowerment coupled with a performance-based compensation method
Low-level empowerment that allows employees to recommend suggestions for improving the firms operations.
Empowerment involving small groups of employees from various departments in the firm who use brainstorming sessions to generate additional improvement suggestions.
allows employees to examine the content of their own jobs and to define their own roles within the organization
Allows employees to eventually learn to manage themselves, utilizing extensive training and employee control of the reward allocation decisions.
Customer Relationship Management (CRM)
An approach to managing a company's interactions with current and future customers. It often involves using technology to organize, automate, and synchronize sales, marketing, customer service, and technical support (where appropriate)
Individuals participation in the production of their own service
Novice and Expert Performance
The spectrum of performance ability. Not all consumers are equally proficient. The novice does not know what to do and how to perform. An expert knows how to be part of the production process.
individuals who have expertise in the purchase process for a particular good or service
Expert performers are expert in the service production process.
buffering the technical core
The operations management concept of ensuring that the core of the production process is able to run as efficiently as process. For manufacturing plants, this is executed by creating buffers (stocks) of raw material input and buffers (stocks) of the outputs to ensure that the factory itself can run uninterrupted (ch 5).
Service production processes are arranged on a spectrum according to how much the consumer is a part of the process. In low contact-systems, the consumer plays only a small roll.
The consumer is an integral part of the service production process.
The script a consumer carries into the service setting; what the consumer expects to happen and the benchmark against which he or she will evaluate the experience.
The allocation of responsibility to self and other people or even chance. In the sense of satisfaction or dissatisfaction, consumers will allocate the cause of the satisfaction or dissatisfaction, and only in some cases blame the service organization.
Auditing consumer performance expertise
Measuring the current extent to which the consumer understands the script that the service system has been designed to deliver.
The operations management approach to consumer performance, in which consumers are viewed as employees (albeit only partial ones) and the same people logic is applied to them as is applied to employees.
From a HR management perspective, employees have to "on-board" successfully into the organization. They have to be taught their role, the places, and procedures, and most importantly "how we do things around here." Consumers too need to be "on-boarded."
The management of a diverse group of customers with different needs within the same service setting.
expectancy disconfirmation model
model proposing that comparing customer expectations to their perceptions leads customers to have their expectations confirmed or disconfirmed
Customer expectations that match customer perception, resulting in customer satisfaction
customer expectations that do not match customer perceptions
customer perceptions that are lower than customer expectations, resulting in customer dissatisfaction
customer perceptions that exceed customer expectations, resulting in delighting customers
measures of customer satisfaction including tracking and monitoring sales records, profits, and customer complaints
measures of satisfaction generally obtained directly from customers using customer satisfaction surveys
A bias in survey results because of responses being received from only a limited group among the total survey participants
the way a question is phrased, i.e., positively or negatively
The placement and tone of a question relative to the other questions ask
the length of time after the date of purchase that questions are asked
social desirability bias
A bias in survey results because of respondents tendencies to provide information they believe is socially appropriate
setting standards against which to compare future data collected
the level of service quality a consumer believes is likely to occur
The level of service quality a customer actually wants from a service encounter
perceived service superiority
a measure of service quality derived by comparing desired service expectations and perceived service received
the level of service quality a customer is willing to accept
perceived service adequacy
a measure of service quality derived by comparing adequate service and perceived service
zone of tolerance
Level of quality ranging from high to low and reflecting the difference between desired service and adequate service; expands and contracts across customers and within the same customer, depending on the service and the conditions under which it is provided
enduring service intensifiers
Personal factors that are stable over time and increase a customer's sensitivity to how a service should be best provided
expectations appropriated from and based on the expectations of others
personal service philosophies
a customer's own internal views of the meaning of service and the manner in which service providers should conduct themselves
a customer's physical, social, and psychological needs
explicit service promises
Obligations to which the firm commits itself through its advertising, personal selling, contracts, and other forms of communication
implicit service promises
Obligations to which the firm commits itself by means of the tangibles surrounding the service and the price of the service
Unbiased information from someone who has been through the service experience, such as friends, family, or consultants.
The previous service encounters a consumer has had with a service provider.
Transitory Service Intensifiers
personal, short-term factors that heighten a customer's sensitivity to service
Perceived Service Alternatives
comparable services customers believe they can obtain elsewhere and/or produce themselves
self-perceived service role
the input a customer believes he or she is required to present in order to produce a satisfactory service encounter
circumstances that lower the service quality but that are beyond the control of the service provider
An attitude formed by a long-term, overall evaluation of a firm's performance
The distance between a customer's expectation of a service and perception of the service actually delivered
The difference between what consumers expect of a service and what management perceives the consumers to expect
the difference between what management perceives consumers to expect and the quality specifications set for service delivery
the difference between the quality standards set for service delivery and the actual quality of service delivery
the difference between the actual quality of service delivered and the quality of service described in the firm's external communications
A firm's attitude toward conducting consumer research
The flow of information from front-line personnel to upper levels of the organization
levels of management
the complexity of the organizational hierarchy and the number of levels between top management and the customers
willingness to perform
an employee's desire to perform to his or her full potential in a service encounter
the degree to which employees are able to perform a service to specifications
an inconsistency in service providers minds between what the service manager expects them to provide and the service they think their customers actually want.
uncertainty of employees' roles in their jobs and poor understanding of the purpose of their jobs
dispersion of control
The situation in which control over the nature of the service being provided is removed from employees' hands
the condition of employees who, through repeated dispersion of control, feel themselves unable to perform a service adequately.
a management failure to give employees personal training and/or technological and other resources necessary for them to perform their jobs in the best possible manner
A firm's promise of more than it can deliver
the flow of internal communication between a firm's headquarters and its service firms in the field.
the SERVQUAL assessment of a firm's ability to manage its tangibles
The SERVQUAL assessment of a firm's consistency and dependability in service performance
the SERVQUAL assessment of a firm's commitment to providing its services in a timely manner
the SERVQUAL assessment of a firm's competence, courtesy to its customers, and security of its operations
The SERVQUAL assessment of a firm's ability to put itself in its customers' place
service quality information system
An ongoing research process that provides relevant data on a timely basis to managers, who use the data in decision making
Research that examines the customer's perspective of a firm's strengths and weaknesses
Research that examines how competitors perform on service and how employees view the firm's strengths and weaknesses
A type of satisfaction survey that addresses customer satisfaction while the service encounter is still fresh in the customer's mind
focus group interviews
Informal discussions with 8 to 12 customers that are usually guided by a trained moderator: used to identify areas of information to be collected in subsequent survey research.
A form of non customer research that consists of trained personnel who pose as customers, shop at the firm unannounced, and evaluate employees.
Internal measures of service quality concerning employee morale, attitudes, and perceived obstacles to the provision of quality services
Total Market Service Quality Surveys
Surveys that measure the service quality of the firm sponsoring the survey and the service quality of the firm's competitors
Breakdowns in the delivery of service; service that does not meet customer expectations.
A firm's reaction to a complaint that results in customer satisfaction and goodwill
complaints expressed for the purpose of altering an undesirable state of affairs
Complaints expressed without expectation that an undesirable state will be altered.
Complaints directed at someone or something outside the realm of the complainer.
Complaints directed at some inner aspect of the complainer
A complaining outcome in which the consumer verbally communicates dissatisfaction with the store or the product.
A complaining outcome in which the consumer stops patronizing the store or using the product.
A complaining outcome in which the consumer takes action deliberately designed to damage the physical operation or hurt future business.
Formalized step-by-step processes that are developed to facilitate the firm's failure analysis and service recovery efforts.
Informal sets of values and beliefs that comprise the firm's service recovery culture
service recovery culture
an informal set of beliefs, behaviors, and practices that set the tone for how the firm wishes to address customer complaints
Core service failures
Failures in the core service offering of the firm including unavailable service, unreasonably slow service, and other core service failures.
failures relating to customer needs and requests
Service failures relating to the implicit and explicit needs of customers, including special needs, customer preferences, customer errors, and disruptive others.
failures relating to unprompted/unsolicited employee actions
Failures relating to level of attention, unusual employee actions, violations of cultural norms, gestalt, and responses to adverse conditions.
Failures Relating to Problematic Customers
Failures relating to the customer's own misbehavior, including drunkenness, verbal and physical abuse, violations of company policies, and uncooperative customers.
A service failure attribution pertaining to the possible source of the failure including the service provider, the firm, the customer, or external forces.
A service failure attribution pertaining to the likelihood the service failure will recur.
A service failure attribution pertaining to whether or not the firm had control over the cause of the failure.
A set of recovery strategies that compensate the customers to offset the costs of the service failure
A set of recovery strategies offered to offset the current failure situation by providing an identical offering, corrections to the original offering, or by offering a substitute
A set of verbal recovery strategies involving apologies from front-line providers and/or upper-level management.
A set of recovery strategies that provide the customer with a refund or store credit.
A recovery strategy in which the firm purposely decides not to respond to customer complaints
The process in which customers weigh their inputs against their outputs when forming recovery evaluations
A component of perceived justice that refers tot he outcomes (compensation) associated with the service recovery process.
A component of perceived justice that refers to the process (time) the customer endured during the service recovering process.
A component of perceived justice that refers to human content (empathy, friendliness) that is demonstrated by service personnel during the service recovery process.
A situation in which the employee is caught between the opposing wishes of the firm's customers and the firm's management.
A situation in which the employee does not know how to perform his or her job.
service recovery paradox
A situation in which the customer rates performance higher if a failure occurs and the contact personnel successfully recover from it than if the service had been delivered correctly the first time.
Reflects an emotional attachment as well as a business attachment to the service firm.
Focusing the firm's marketing efforts toward the existing customer base.
a marketing strategy for constantly seeking new customers by offering discounts and markdowns and developing promotions that encourage new business
lifetime value (LTV) of a customer
The average dollar amount per sale multiplied by the average number of times customers reorder (discounted to the present)
Lifetime profit (LTP) of a customer
The average profit per sale multiplied by the average number of times customers reorder (discounted to the present)
customer acquisition cost
the monetary amount spent on marketing and other activities to acquire a new customer
Marketing technique that strives to make existing customers purchase more often from the same provider.
Marketing technique based on developing long-term relationships with customers.
marketing technique that emphasizes marketing after the initial sale has been made
a guarantee that promises complete customer satisfaction and, at a minimum, a full refund or complete, no-cost problem resolution
specific result guarantee
a guarantee that applies only to specific steps or outputs in the service delivery process
an unwritten, unspoken guarantee that establishes an understanding between the firm and its customers
a systematic process that actively attempts to retain customers before they defect
zero defects model
a model used in manufacturing that strives for no defects in goods produced
a model used by service providers that strives for no customer defections to competitors
Customers who switch to competitors for lower-priced goods and services.
Customers who switch to competitors who offer superior goods and services.
Customers who defect due to poor customer service.
Customers who exit the market due to relocation or business failure.
customers who switch to products outside the industry
Customers who leave due to political considerations inside the firm, such as reciprocal buying arrangements.
services that occur without interruption, confusion, or hassle to the customer.
the belief that the function of something rather than the experience it creates should determine its design.
The act of dividing an organization into departments that focus on their own set of activities.
implicit and explicit principles of individual departments that drive organizational performance
the reasoning that stresses cost containment/reduction through mass production.
the reasoning that stresses providing customers with options that better enable the service offering to meet individual needs.
human resources logic
the reasoning that stresses recruiting personnel and developing training to enhance the performance of existing personnel.
Promotes seamlessness by balancing the internal logics of marketing, operations, and human resources
Industrial management model
an approach to organizing a firm that focuses on revenues and operating costs and ignores the roles personnel play in generating customer satisfaction and sustainable profits.
Market-focused management model
A new organizational model that focuses on the components of the firm that facilitate the firm's service delivery system.
The shared values and beliefs that drive an organization's overall service philosophy.
A series of questions that force the firm to think about what drives its profits and suggests strategies for competitive differentiation and long-term probablility.
The formal reporting hierarchy normally represented in an organizational chart
people-management systems of control, evaluation, promotion, and recognition.
interfunctional task force
Problem-solving group in which individuals with diverse viewpoints work together and develop a better understanding of one another's perspectives.
Moving, via promotion or transfer, an employee from one organizational department to another to foster informal networks among departments.
Putting the Customer First
The element of the culture-change initiative that teaches personnel to put the customer first.
The element of the culture-change initiative that teaches "families" of personnel to reinforce one another on the job.
change the way you work
The element of the culture-change initiative that allows personnel to break the rules in the context of serving their customers.
Change the way we work
The element of the culture-change initiative that teaches personnel to flowchart their activities and to re-engineer the process to better serve their customers.
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