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42 terms

Chapter 12

Services Marketing
STUDY
PLAY
Services
Intangible activities or benefits that an organization provides to satisfy customers' needs in exchange for something of value
Intangibility, Inconsistency, Inseparability, and Inventory
Four unique elements of service
Intangibility
a service that cannot be held, touched, or seen before the purchase decision
Inconsistency
reduced through standardization and training
Inseparability
the deliverer of service from the service itself
Inventory
in services costs are subjective
Inventory carrying cost
depends on the cost of the employees and equipment
idle production capacity
a service provider is available but there is no demand
time
one reason service providers must maintain production capacity
service continuum
market range from the tangible to the intangible or good-dominant to service-dominant offerings
supplementary services
allow service providers to differentiate their offering from competitors , and may add value for the consumer
delivered method, profit or nonprofit,government sponsored
Services can be classified in three ways
authenticity
customers really want; engaging, personable, and memorable offerings
facilitate customization, personal interaction, sharing interests, manage reputation
How do service providers ensure authentic offerings?
search, experience, and credence
used to evaluate services(3)
search properties
tangible services have
experience properties
intangible services have
credence properties, impossible to evaluate
services by specialized professionals have
opinion leaders and reference groups
customers use these during the decision process
gap analysis
difference between customers expectations and experience
word of mouth communications, personal needs, past experiences, and promotional activities
Expectations are influenced by (4)
delivery of service
Experiences are influenced by
customer contact audit
a flowchart of the points of interaction between consumer and service provider ...made by Hertz
reliability, tangibles, responsiveness, assurance, empathy
Five dimensions of service quality
reliability
ability to perform the promised service dependably and accurately
tangibility
appearance of physical facilities, equipment, personnel, and communication materials
responsiveness
willingness to help customers and provide prompt service
assurance
knowledge and courtesy of employees and their ability to convey trust and confidence
empathy
caring, individualized attention provided to customers
relationship customers
terms of loyalty, benefits, and respect for privacy and higher expectation of future use of service
product, price, place, promotion, people, physical environment, process, and productivity
eight Ps of services marketing
service identities
logos create
off-peak pricing
charging different prices during different times of the day or during different days of the week to reflect variations in demand for the service
perceptions of service
prices influence
promotion
showing customers the benefits of purchasing the service
Internal marketing
focusing on its employees before successful programs can be directed at customers
Customer experience management(CEM)
process of managing the entire customer experience with the company
capacity management
the service component of the marketing mix is integrated with efforts to influence customer demand
demand matches capacity and organizations assets maximize ROI
the availability of the offering for service organizations must include these (2)
Return on investment
ROI
technology advances and the expanding global economy
future factors that will chance service
mobility, convergence, personalization, collaboration
future elements of services