Ch. 12 Services and Non- Profit Organization Marketing

Service

The result of applying human or mechanical efforts to people or objects, involving a deed or performance that cannot be physically possessed.

Service Sector

The part of the economy that provides services, accounting for approximately 80% of the U.S. economic output.

Intangibility

The characteristic of services that means they cannot be touched, seen, tasted, heard, or felt in the same way as physical goods.

Search Quality

A characteristic that can be easily assessed before purchase, such as the color of an appliance or automobile.

Experience Quality

A characteristic that can only be assessed after use, like the quality of a meal in a restaurant.

Credence Quality

A characteristic that consumers may have difficulty assessing even after purchase due to a lack of necessary knowledge or experience.

Inseparability

The characteristic of services meaning that they are sold, produced, and consumed simultaneously, requiring consumer presence during production.

Heterogeneity

The variability of inputs and outputs in services, leading to less standardization and consistency compared to goods.

Perishability

The inability of services to be stored or inventoried; empty hotel rooms or airplane seats produce no revenue.

Service Quality

More difficult to define and measure than the quality of tangible goods, due to the unique characteristics of services.

Reliability

The ability to perform the service dependably, accurately, and consistently.

Responsiveness

The ability to provide prompt service, such as quickly returning customer calls or serving food fast.

Assurance

The knowledge and courtesy of employees and their ability to convey trust to customers.

Empathy

Caring, individualized attention provided to customers, recognizing their specific requirements.

Tangibles

The physical evidence of the service including facilities, tools, and the appearance of personnel.

Service as a Process

The categorization of service processes based on whether they are directed at people or objects.

People Processing

Service directed at a customer, such as transportation services or health care.

Possession Processing

Service directed at customers' physical possessions, such as lawn care or dry cleaning.

Mental-Stimulus Processing

Service directed at people's minds, such as theater performances or education.

Information Processing

Services that involve technology or mental effort directed at a customer’s assets, like insurance or consulting.

Core Service

The most basic benefit that the customer is buying in a service offering.

Supplementary Services

Additional services that support or enhance the core service being offered.

Customization

Tailoring services to meet individual customer needs, usually at a higher price.

Standardization

Setting a uniform level of services to increase efficiency and reduce costs.

Mass Customization

Using technology to deliver customized services to customers on a large scale.

Place Strategy

Distribution strategies that focus on convenience, number of outlets, location, and scheduling in services.

Nonprofit Organization

An organization that exists to achieve goals other than profit, market share, or return on investment.

Nonprofit Organization Marketing

Efforts by nonprofit organizations to create mutually satisfying exchanges with target markets.

Client Identification

The process of identifying the customers or target market that nonprofit organizations wish to serve.

Program Management

The activities involved in developing, managing, and eliminating programs and services in nonprofit organizations.

Communication of Availability

How nonprofit organizations inform potential customers about their services through various means.