Services Marketing — Quizlet

Intangibility: What does it mean?

Services cannot be physically touched or examined before purchase. Example: Financial advice. TRIGGER: Cannot touch a service → Intangibility.

Inseparability: What does it mean?

Services are often produced and consumed at the same time. Example: A haircut happens while the customer receives it. TRIGGER: Production and consumption together → Inseparability.

Inconsistency (Heterogeneity): What does it mean?

Service quality can vary depending on the employee, time, or location. Example: One waiter provides better service than another. TRIGGER: Different service experiences → Inconsistency.

Perishability (Inventory): What does it mean?

Services generally cannot be stored for future sale. Example: An empty hotel room tonight cannot be sold tomorrow for tonight's stay. TRIGGER: Cannot store unused service capacity → Perishability.

Search Quality: What is it?

A product characteristic customers can evaluate BEFORE buying. Example: Clothing color, size, or price. TRIGGER: Evaluate BEFORE purchase → Search Quality.

Experience Quality: What is it?

A characteristic customers can evaluate AFTER purchasing or experiencing the product or service. Example: How good a restaurant meal tastes. TRIGGER: Evaluate AFTER use → Experience Quality.

Credence Quality: What is it?

A characteristic customers may struggle to evaluate EVEN AFTER receiving the service. Example: Whether a mechanic performed every necessary repair. TRIGGER: Difficult to judge even afterward → Credence Quality.

Service Quality: What are the five dimensions?

Reliability, Responsiveness, Assurance, Empathy, and Tangibles. Memory trick: R-R-A-E-T.

Reliability: What does it mean?

Providing the promised service accurately and consistently. Example: A bank processes your deposit correctly. TRIGGER: Doing what was promised → Reliability.

Responsiveness: What does it mean?

Willingness to help customers promptly. Example: A bank employee quickly assists a customer. TRIGGER: Fast help → Responsiveness.

Assurance: What does it mean?

Employees' knowledge, professionalism, and ability to inspire trust. Example: A financial advisor confidently explains investments. TRIGGER: Knowledge + Trust → Assurance.

Empathy: What does it mean?

Giving customers caring, individualized attention. Example: A bank employee takes time to understand a customer's financial situation. TRIGGER: Personalized care → Empathy.

Tangibles: What does it mean?

Physical evidence of service quality, such as facilities, equipment, and employee appearance. Example: A clean bank with professional-looking employees. TRIGGER: Physical appearance → Tangibles.

GAP Model: What is its purpose?

Identifies differences between customer expectations and how a company understands, designs, delivers, and communicates its service.

Gap 1 — Knowledge Gap: What is it?

Management misunderstands what customers actually want. Example: Customers want shorter bank wait times, but management thinks they want more ATMs. TRIGGER: Doesn't understand customer needs → Gap 1.

Gap 2 — Standards Gap: What is it?

Management understands customer needs but fails to create appropriate service standards. Example: A bank knows customers want fast service but sets no wait-time target. TRIGGER: No proper standards → Gap 2.

Gap 3 — Delivery Gap: What is it?

Employees fail to deliver service according to established standards. Example: Bank policy requires a 5-minute wait, but customers wait 20 minutes. TRIGGER: Standards not followed → Gap 3.

Gap 4 — Communications Gap: What is it?

The service delivered does not match what the company promised. Example: A bank advertises no waiting, but customers wait 15 minutes. TRIGGER: Promises don't match reality → Gap 4.