Services: The Intangible Product

This set of flashcards covers essential vocabulary and concepts related to services and service quality, as discussed in the lecture notes.

Intangible Product

A product that cannot be seen, touched, or possessed; typically refers to services.

Service Gap

The difference between customer expectations of a service and the actual service delivered.

Knowledge Gap

The gap that exists when management misunderstands customer expectations for service quality.

Standards Gap

The gap between the service standards set by a company and customer expectations.

Delivery Gap

The discrepancy between the service promised and the service delivered at the point of customer interaction.

Communication Gap

The gap that arises when a company promises more than it can realistically deliver.

Word-of-mouth

The informal spoken exchange of information, which becomes crucial for services as there is no physical product to market.

Perishability of Services

The characteristic of services that cannot be inventoried or stored; demand must be carefully managed.

Operational Excellence

A core competence necessary for service businesses to effectively manage fluctuations in demand.

Customer Expectations

The anticipated service quality levels that customers believe they will receive from a service provider.

Service Recovery

Actions taken by a company to rectify a service failure and enhance customer satisfaction.

Distributive Fairness

The perceived fairness of the outcome received in service recovery compared to the costs incurred.

Procedural Fairness

The perceived fairness of the process used to resolve service complaints.

Co-production of Services

A process where consumers participate in the service delivery along with the service provider.

Artificial Intelligence in Services

The use of AI technologies to provide and enhance service delivery, potentially reducing human involvement.

Customer Involvement in Service Recovery

Engaging customers in the recovery process to better understand their needs and improve satisfaction.