MKTG Final CH10

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MKTG Final CH10
2010-04-29 22:54:11

Services Terms
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  1. What are services?
    Intangible products that are exchanged directly from the producer to the customer.
  2. What are the 4 ways services differ from products? (I.I.P.V.)
    Intangibility, Inseparability, Perishability, Variability.
  3. Intangibility
    means customers cant see, touch, or smell good service.
  4. Inseperability
    means it is impossible to separate the production of a service from the consumption of that service (ex: a haircut is produced when a client arrives.)
  5. Perishability
    makes it impossible to store for later sale or consumption.
  6. Variability
    means even the same service performed by the same individual for the same customer can vary.
  7. How do consumers judge service quality?
    • -Social Elements
    • -Physical Elements
    • -Servicescape
    • -Search Qualities
    • -Experience Qualities
  8. Servicescape
    The actual physical facility where the service is performed, delivered, and consumed. Quality cues increase consumer beliefs they are receiving a high-quality service.

    Servicespace atmospherics can increase service quality
  9. Service Encounter

    The actual interaction btwn the customer and the service provider.
  10. Search Qualities
    Product characteristics that the consumer can examine prior to purchase.
  11. What is the Gap Analysis model?
    A marketing research method that measures the difference between a customer's expectations of a service quality and what actually occurred.
  12. What are the 5 service gaps?
    • Gap 1 - poor understanding of customer preferences
    • Gap 2 - poor management standards
    • Gap 3 - current performance is sub-standard
    • Gap 4 - unrealistic promises
    • Gap 5 - unrealistic consumer expectations
  13. Experience qualities
    product characteristics that customers can only judge during or after consumption. ex: the taste of a latte
  14. Critical Incident Technique
    • A method for measuring service quality where marketers use customer complaints to identify critical incidents and improve their service act.
    • (ex: specific face-to-face contact btwn consumer and service provider that lead to dissatisfaction)
    A multi-item survey that measures customers perceptions of service quality through it's 5 dimensions.
  16. What are the SERVQUAL 5 dimensions?
    • 1 - Tangibles
    • 2 - Reliability
    • 3 - Responsiveness
    • 4 - Assurance
    • 5 - Empathy
  17. Core Service
    The basic benefit of having a service performed. ex: basketball game
  18. Supplementary (Augmented) Service
    The core service PLUS additional services provided to enhance value. ex: valet parking at the basketball game.
  19. Four categories of service processes
    • 1 - people
    • 2 - possessions
    • 3 - mental stimulus
    • 4 - information
  20. Disintermediation
    Using self-service technologies (ATM) to eliminate the interaction between customers and salespeople. The goal is to minimize negative service, reduce service variability, and reduce costs.
  21. Credence Qualities
    Product characteristics that are difficult to evaluate even after they have been experienced.
  22. Capacity Management
    The process by which organizations adjust their offerings in an attempt to match demand.