Services: The Intangible Product

Flashcards for reviewing a lecture on Services Marketing.

Service

Any intangible offering that involves a deed, performance, or effort that cannot be physically possessed.

Commodities

Basic building blocks of value (Hierarchy of Value)

Products

Tangible goods offered for sale. (Hierarchy of Value)

Services

Intangible offerings that provide value to customers. (Hierarchy of Value)

Experiences

Personal and memorable events that engage customers. (Hierarchy of Value)

Intangible

Services cannot be touched, tasted, or seen like a physical product.

Inseparable

Services are produced and consumed simultaneously; both provider and customer must be present.

Heterogeneous

Services vary from one time to the next.

Perishable

Services cannot be stored for use in the future.

Presentation

Impacts consumers’ judgments of the service quality (one of the 7 P's).

Personnel

In person-to-person transactions, more important for services than for goods (one of the 7 P's).

Processes

Actions required to get the good or service to the customer (one of the 7 P's).

Knowledge Gap

Difference between customer expectations and the firm's perception of those expectations.

Voice-of-customer (VOC) program

Collects customer inputs and integrates them into managerial decisions.

Zone of tolerance

Area between customers’ expectations regarding their desired service and the minimum level of acceptable service.

Standards Gap

Difference between the firm’s perceptions of customer expectations and the service standards it sets.

Delivery Gap

The difference between what a company promises to deliver to customers and what customers actually experience.

Communications Gap

Difference between the actual service provided and the service the firm promises.

Reliability

The ability to perform the service dependably and accurately.

Responsiveness

The willingness to help customers and provide prompt service.

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.

Price (one of the 7 P's)

The price customers pay for the service, which needs to reflect value while remaining competitive.

Place (one of the 7 P's)

Where the service is available to customers, including physical locations or online platforms.

Promotion (one of the 7 P's)

Activities used to communicate the service’s benefits and value to the target audience.

Presentation (one of the 7 P's)

Impacts consumers’ judgments of the service quality.

Personnel (one of the 7 P's)

In person-to-person transactions, more important for services than for goods.

Processes (one of the 7 P's)

Actions required to get the good or service to the customer.

Product (one of the 7 P's)

The goods or services offered to customers.