mktg exam 2

service

intangible service that an organization provides to satisfy a customer need in exchange for money or some other goods

4 unique characteristics of service

Intangibility, Inseperability, Inconsistency (variability), Inventory (Perishable)

Intangibility

• services cannot be used within the 5 human sense

• difficult to evaluate even after consuming

Inseperability

• simultaneous production and consumption of the service

• The customer generally needs to be present during the exchange to experience the service.

• massage/haircut

Inconsistency(Variability)

• difference in consistency from one service transaction to the next

• difficult to achieve 100% perfect quality consistently

• 
  

Inventory (Perishability)

• the service cannot be stored

• unused capacity cannot be reserved

• cannot be inventoried

• “use it or lose it”

• if unsold= lost revenue

• airplane seats, empty hotel room, unused concert seat

knowledge Gap #1

• the difference between what consumers expect vs what management thinks they expect

• coffee ready in 3 mins vs 7

Standards Gap (2)

• the difference between what management thinks customers want and the service it then establishes

Delivery Gap (3)

• the difference between the standards set by management, and the actual time of service /service employees actually deliver

• The company has established service standards, but employees fail to meet them.

Communication Gap (4)

• the company promises consumers something that its actual company does not deliver

Service Gap (5)

• the difference between waht the customers expected and what they THINK they got (perceive recieving)

ServiceScape

• use of physical elements to design service of the environments

• physical service of layout