Chapter 13: Services- The Intangible Product

service

any intangible offering that involves a deed, performance, or effort that cannot be physically possessed. intangible customer benefits that are produced by people or machines and cannot be separated from the producer

customer service

human or mechanical activities firms undertake to satisfy their customer's needs and wants

intangible

a characteristic of a service- it cannot be touched, tasted, or seen like a pure product can

inseparable

a characteristic of a service- it is produced and consumed at the same time. describes the relationship between the service and the consumption

heterogeneity

the variability of a service's quality; the delivery of services is more variable

perishable

a characteristic of a service- it cannot be stored for use in the future

service gap

results when a service fails to meet the expectations that customers have about how it should be delivered

knowledge gap

the difference between customer's expectations and the firm's perception of those expectations

delivery gap

the difference between the firm's service standards and the actual service it provides

standards gap

the difference between the firm's perceptions of customer's expectations and the service standards it sets

communication gap

the difference between the actual service provided to customers and the service that the firm's promotion program promises

service quality

customer's perceptions of how well a service meets or exceeds their expectations

reliability

the ability to perform the service dependably and accurately

responsiveness

the willingness to help customers and provide prompt services

assurance

the knowledge of and courtesy by employees and their ability to convey trust and confidence

empathy

the caring, individualized attention provided to customers

tangibles

the appearance of physical facilities, equipment personnel, and communication materials

voice of customer program (VOC)

an ongoing marketing research system that collects customer inputs and integrates them into managerial decisions

zone of tolerance

the area between customer's expectations regarding their desired service and the minimum level of acceptable service. the difference between what the customer really wants and what he or she will accept before going elsewhere

empowerment

allowing employees to make decisions about how service is provided to customers

emotional support

concern for others' well-being and support of their decisions in a job setting

instrumental support

providing the equipment or systems needed to perform a task in a job setting

distributive fairness

a customer's perception of the benefits he or she received compared with the costs (inconvenience or loss) that resulted from a service failure

procedural fairness

the customer's perception of the fairness of the process used to resolve complaints about service