Chapter 10 - Intangible Products

customer service

Specifically refers to human or mechanical activities firms undertake to help satisfy their customers’ needs and wants.

Pure Service

A pure service is a service without a tangible result, such as education

What is the % of Canadians working in Pure service

80

How does marketing services differ from marketing products?

4 Fundimental differences. They are intangible, inseparable from their providers, inconsistent and can not be inventoried

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—that is, service and consumption are inseparable.

inconsistent

A characteristic of a service: its quality may vary because it is provided by humans.

inventory

A characteristic of a service: it is perishable and cannot be stored in inventory for future use.

Gaps Model

This gap measures what customers expect and what management thinks they want

service gap

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

knowledge gap

Reflects the difference between customers’ expectations and the firm’s perception of those expectations.

standards gap

Pertains to the difference between the firm’s perceptions of customers’ expectations and the service standards it sets.

delivery gap

The difference between the firm’s service standards and the actual service it provides to customers.

communication gap

Refers to the difference between the actual service provided to customers and the service that the firm’s promotion program promises.

service quality

Customers’ perceptions of how well a service meets or exceeds their expectations.

zone of tolerance

The area between customers’ expectations regarding their desired service and the minimum level of acceptable service—that is, the difference between what the customer really wants and what they will accept before going elsewhere.

empowerment

In the context of service delivery, means allowing employees to make decisions about how service is provided to customers.

voice-of-customer (VOC) program

An ongoing marketing research system that collects customer insights and intelligence to influence and drive business decisions.

Benefits of in-store kiosks include:

Routine service concerns, order merch not in store

Fairness

relates to a customer’s perception of the benefits they received compared with the costs (inconvenience or loss).