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customer service:
human or mechanical activities firms undertake to help satisfy their customers' needs & wants
service:
any intangible offering that involves a deed, performance, or effort that can't be physically possessed
how much of U.S. GDP do services account for?
about 80%
what are the four fundamental differences between services marketing & product marketing?
1. services are intangible
2. services have inseparable production & consumption
3. services are heterogeneous
4. services are perishable
describe the difference that services are intangible:
- they can't be touched, tasted, or seen
- difficult to convey the benefits; difficult to promote
describe the difference that services have inseparable production & consumption:
- services are produced & consumed at the same time
- the customer is rarely able to try the service before purchasing it and it can't be returned
describe the difference that services are heterogeneous:
- the quality of the service varies
- an inferior service can't be recalled
- to reduce variability, some firms replace humans with machines
heterogeneity:
variability in the quality of the service
describe the difference that services are perishable:
they can't be stored for use in the future
service gap:
delivery of the service fails to meet customers' expectations
Service Gap Model:
designed to encourage the systematic examination of all aspects of the service delivery process & prescribe the steps needed to develop an optimal service strategy
what are the four types of service gaps?
- knowledge gap
- standards gap
- delivery gap
- communication gap
knowledge gap:
difference between customers' expectations & the firm's perception of the customers' expectations
how can firms close a knowledge gap?
determining what customers really want by doing research using metrics like service quality & zone of tolerance
standards gap:
difference between firm's perceptions of customers' expectations & the service standards it sets
how can firms close a standards gap?
- setting appropriate standards
- training employees to meet or exceed standards
- measure service performance
delivery gap:
difference between firm's service standards & the actual service provided to customers
how can firms close a delivery gap?
- empowering service providers
- providing support & incentives
- using technology where appropriate
communication gap:
difference between actual service provided & the service the firm's promotion promises
how can firms close a communication gap?
be more realistic about their services
what are customers' expectations about a service based on?
their knowledge & experiences
in what ways can customers' expectations vary?
- vary according to the type of service
- vary according to the situation
what are the five distinct service dimensions that customers generally use to determine overall service quality?
- reliability
- responsiveness
- assurance
- empathy
- tangibles
reliability:
ability to perform service dependably & accurately
responsiveness:
willingness to help customers & provide prompt service
assurance:
knowledge of & courtesy by employees & their ability to convey trust & confidence
empathy:
the caring, individualized attention provided to customers
tangible:
appearance of physical facilities, equipment, personnel, & communication materials
voice-of-customer (VOC) program:
collects customer inputs & integrates them into managerial decisions
zone of tolerance:
an important metric; difference between what customer really wants & what they'll accept before going elsewhere
empowerment:
allowing employees to make decisions about how service is provided to customers
instrumental support:
managers need to provide systems & equipment that is required to properly perform the service
what does "service recovery" refer to?
in the event of a service failure, firm should try to make things right with the customer
what are the elements of service recovery?
- listening to customers & involving them in service recovery
- finding a fair solution
- resolving problems quickly
distributive fairness:
customer's perception of the benefits they received after a service failure compared with the costs
procedural fairness:
perceived fairness of the process used to resolve a service failure