Services Marketing

Card Set Information

Author:
LeahT
ID:
238457
Filename:
Services Marketing
Updated:
2013-10-02 22:25:44
Tags:
Marketing
Folders:

Description:
Studying for a services marketing test at GBC.
Show Answers:

Home > Flashcards > Print Preview

The flashcards below were created by user LeahT on FreezingBlue Flashcards. What would you like to do?


  1. What is a service?
    An act or performance offered by one party to another. Intangible, but may involve use of physical goods. Economic activity that does not result in ownership.
  2. What are the 8P's of service marketing?
    • 1. Product elements
    • 2. Place, cyberspace, and time
    • 3. Process
    • 4. Productivity and quality
    • 5. People
    • 6. Promotion
    • 7. Physical evidence
    • 8. Price and other outlays (delivery etc.)
  3. Factors stimulating competition and innovation in the service economy.
    • - Government policies
    • - Social changes
    • - Business trends
    • - Advances in IT
    • - Internationalization
  4. Ways of classifying services.
    • 1. Degree of tangibility/intangibility of service process
    • 2. Who/what is the direct recipient of service process
    • 3. Place and time of service delivery
    • 4. Customization vs. standardization
    • 5. Nature of relationship
    • 6. Extent to which demand and supply are in balance
    • 7. Facilities, equipment, and people as part of the service
  5. 4 Types of services processes.
    • 1. People processing (airlines, hospitals, hotels)
    • 2. Possession processing (freight, cleaners, landscaping)
    • 3. Mental stimulus processing (broadcasting, consulting, psychotherapy)
    • 4. Info processing (accounting, banking, legal, research)
  6. High contact services:
    • - Customer visits service facility and remains throughout service delivery
    • - Active contact with the customer and service personnel
    • - Includes most people processing services
  7. Low contact services:
    • - Little/no physical contact with service personnel
    • - Contact usually at arms length through electronic or physical distribution channels
  8. High contact services ex:
    • Spa
    • Nail Salon
    • Bank
    • Bar
    • Taxi
    • Travel Agent
  9. Medium contact services ex:
    • Tech Support
    • Telephone Banking
    • Phone Agent
  10. Low contact services ex:
    • Facebook
    • Google
    • Online Banking
    • Taxi Apps
    • Online Travel Agent
  11. Service enounter
    A period of time during which customers interact directly with a service.
  12. Moments of truth
    Defining points in service delivery where customers interact with employee or equipment.
  13. Critical incidents
    Specific encounters that result in especially satisfying/dissatisfying outcomes for either the customers or the service employees
  14. 3 overlapping subsystems within the service system
    • 1. Service operations (front + backstage)
    • 2. Service delivery (front-stage)
    • 3. Services marketing (front-stage)
  15. 1. Service ops
    Where inputs are processed and service elements are created (facilities, equipment, personnel).
  16. 2. Service delivery
    Where final assembly of service elements takes place, and service is delivered to customer (includes customer interactions with operations and other customers).
  17. 3. Services marketing
    Includes service delivery (as above) and all other contact between the firm and the customers.
  18. Components of customer expectations.
    • 1. Desired service level
    • - wished for level of service that you believe should be delivered

    • 2. Adequate service level
    • - minimum acceptable level of service

    • 3. Predicted service level
    • - service level customers believes firm will deliver
  19. Zone of tolerance
    Range within which customers are willing to accept variation in service delivery.
  20. Customer delight
    Going beyond satisfaction
  21. Delight is a function of 3 components:
    • 1. Unexpected high levels of performance
    • 2. Arousal (e.g. surprises, excitement) 
    • 3. Positive affect (e.g. pleasure, joy, or happiness)
  22. Types of product attributes:
    • 1. Search attributes
    • 2. Experience attributes
    • 3. Creedence attributes
  23. 1. Search attributes
    Features that customers can readily evaluate prior to purchases (Chair, Car)
  24. 2. Experience attributes
    Features that customers can evaluate only during use (Restaurant Meals)
  25. 3. Creedence attributes
    Features that customers may not be able to evaluate even after use (Medical)
  26. Purchase process for services:
    • 1. Pre-purchase stage (awareness of need, info search, evaluation of alternative service suppliers)
    • 2. Service enounter stage (request service from chosen supplier, service delivery)
    • 3. Post-purchase stage (evaluation of performance, future intentions)
  27. Perceived risk in purchasing and using services:
    • 1. Functional risk (skydiving, going to hairschool for hair cut)
    • 2. Financial risk (investments)
    • 3. Temporal risk (using up time, service ontario)
    • 4. Physical risk (skydiving)
    • 5. Psychological risk (fucks you up)
    • 6. Social risk (facebook)
    • 7. Sensory risk (concert)
  28. Relevant segment variables for services:
    • 1. Timing of service use
    • 2. Level of skill and experience as co-producer/self-server
    • 3. Preferred language in face-to-face contact
    • 4. Access to electronic delivery systems
    • 5. Attitudes towards use of new service technologies
  29. Classifying relationships with customers:
    • 1. Continuous/membership (gym, lessons, internet)
    • 2. Continuous/no formal relationship (ambulance, hospitals)
    • 3. Discrete/membership (Costco, pay as you go, clubs)
    • 4. Discrete/no formal relationship (public parking, concerts)
  30. What makes loyal customers more profitable?
    • 1. They tend to spend more as relationship develops
    • 2. Cost less to serve (less info/assistance, fewer mistakes)
    • 3. Recommendations win new customers for firms (unpaid salespeople) 
    • 4. Trust leads to willingness to pay full price vs. shopping for discounts
  31. Calculating customer value - at acquisition:
    = revenues (initial purchase + application fee) - costs (marketing + credit check + account set up)
  32. Calculating customer value - annual value:
    = revenues (annual account fee + sales + service fees + value of referrals) - costs (account management + cost of sales + write-offs)
  33. How customers see relational benefits in service marketing:
    • 1. Confidence benefits
    • 2. Social benefits
    • 3. Special treatment benefits
  34. 1. Confidence benefits
    • - Less risk of something going wrong, less anxiety
    • - Ability to trust provider
    • - Know what to expect
    • - Get firms best service level
  35. 2. Social benefits
    • - Mutual recognition, known by name
    • - Friendship, enjoyment of social aspects
  36. 3. Special treatment benefits
    • - Better price, and deals unavailable to others
    • - Extra services 
    • - Higher priority with waits, faster service
  37. Problem of customer misbehaviour - 6 types of "Jay Customers":
    • 1. Thief
    • 2. Rule breaker
    • 3. Belligerent
    • 4. Family feuders
    • 5. Vandal
    • 6. Deadbeat
    • 7. Loitering
  38. Entry points for complaints:
    • - Employees serving customers face-to-face or by phone
    • - Intermediaries acting for original supplier
    • - Managers contacted by customers at head/regional office
    • - Complaints cards mailed or put in a box
    • - Complaints passed to company by 3rd party recipients: 
    •     - consumer advocates
    •     - trade organizations
    •     - legislative agencies
    •     - other customers
  39. Components of an effective service recovery system:
    • 1. Effective complaint handling
    • 2. Identify service complaints
    • 3. Resolve complaints effectively
    • 4. Learn from recovery
    • 5/1. Do the job right the first time
  40. Guidelines for effective problem resolution:
    • - Act fast
    • - Admit mistake but don't be defensive
    • - Understand problem from their viewpoint
    • - Don't argue
    • - Acknowledge customers feelings
    • - Give them the benefit of the doubt
    • - Clarify steps to solve the problem
    • - Keep customer informed of progress
    • - Consider compensation
    • - Preserve to regain goodwill
  41. Total product offering
    = core product + supplementary product
  42. Core product
    What you are actually getting
  43. Supplementary services
    Anything that adds value to the core product
  44. The flower of service: core + 8 supplementary types of services:
    • 1. Information - Facilitating
    • 2. Order taking - Facilitating
    • 3. Billing - Facilitating
    • 4. Payment - Facilitating
    • 5. Consultation - Enhancing
    • 6. Hospitality - Enhancing
    • 7. Safekeeping - Enhancing
    • 8. Exceptions - Enhancing
  45. 1. Facilitating: Information
    Customers often require information about how to obtain and use a product or service. They may also need reminders and documentation (concierge, mall info booths).
  46. 2. Facilitating: Order-taking
    Many goods and services must be ordered or reserved in advanced. Customers need to know what is available and may want to secure commitment to delivery (Seinfeld, receptionist).
  47. 3. Facilitating: Billing
    Customers deserve clear, accurate and intelligible bills and statements.
  48. 4. Facilitating: Payment
    Customers may pay faster and more cheerfully if you make transactions simple and convenient for them.
  49. 5. Enhancing: Consultation
    Value can be added to goods and services by offering advice and consultation that are tailored to each customer's needs and situation (trainer, hair cutting).
  50. 6. Enhancing: Hospitality
    Customers who invest time and effort into visiting a business and using its services deserve to be treated as welcome guests (hotels, car dealers).
  51. 7. Enhancing: Safekeeping
    Customers prefer not to worry about looking after the personal possessions that they bring with them to a service site; they also expect firms to help care for the goods that they purchase or rent (valet, safe at a hotel).

What would you like to do?

Home > Flashcards > Print Preview