Service Marketing Exam

Tangibility Spectrum

tangibility of a service

tangible

physical qualities

service scape

how comfortable you are in the service environment

less tangible

harder to market

c-customers

Not at their full potential with the business (not buying or investing yet)

A-Customer

Makes the most profit/value for a business

4 Service Characteristics (IHIP)

Intangibility, Heterogeneity, Inseparability, Perishability

Intangibility

Services are performances rather than actions or actions rather than objects, they cannot be seen, felt, touched, or tasted

Heterogeneity

no two services are exactly alike because performance differs based on customers, time of day, and employees

Inseparability

customers participate in the transaction, customers effect eachother, and employees affect encounters.

Perishability

services cannot be saved, stored, resold, or returned.

7 P’s for Services

Product, Price, Place, Promotion, People, Physical Evidence, Process

Customer gap

the difference between customer expectations and perceptions

4 provider gaps

putting them together is closing the gap

provider knowledge gap 1

inadequate market research, lack of employee/management communication, inadequate service recovery, focusing on transactions instead of relationships

provider design and standards gap 2

poor service design, absence of customer-driven standards, poor service scape design, and inadequate maintainence or updating of service

provider service performance gap 3

the lack of development of standards which employees must follow to provide a high quality service

provider communication gap 4

the difference between actual service functions and the service provider’s communication of the expectations for the service

service dominant logic

the value of a service is dependant on both the customer and the business

goods dominant logic (GDL)

you thinking and business behaviors are based on the companies “goods”

service dominant logic (SDL)

The SDL value is co-created with customers and in GDL designed during production

feminology

value is in the eye of the beholder

Transformative service research

The integration of consumer and service research that centers on creating uplifting changes and improvements

wellbeing TSR

Happiness, a functional way of feeling good, Maslow hierarchy of needs, subjective well-being, or balancing my challenges with available resources

TSR cocreation and wellbeing

A transformative process whereby a focal actor’s subjective well-being is the outcome of balancing “challenges” and “resources” to achieve an equilibrium (state)

What to do with high expectations

innovate and communicate values with customers

Zone of tolerance

whatever happens in the zone stays in the zone (less irritable customers) 

Emplicit service promises

personal or non-personal statements about the service

Implicit service promises

Price and tangible environment, the layout of the building, high vs lower standards 

Word-of-mouth communication

What do peers say? What do reviews say?

Part experience

What influence does my past experience have on the service experience?

touchpoints

Is there a sign outside? What is decorative when you walk in? How do you interact with the cashier?

external customers

suppliers, partners, end consumers

internal customers

within the organization, fellow employees,,, etc

RATER model

Reliability, assurance, Tangibles, empathy, responsiveness

Reliability

Ability to perform the promised service dependably and accurately

assurance

knowledge and courtesy of employees and their ability to inspire trust and confidence 

tangibles

Physical facilities, equipment, and appearance of personnel

empathy

Caring, individualized attention the firm provides its customers 

responsiveness

Willingness to help customers provide prompt service

trailer calls

Random calls or texts for feedback, check if issues have occurred, before the problem gets bigger, reaffirm that the customer has made the right decision

CIT (Critical Incident Technique)

service recovery which either leaves the customer satisfied or disatisfied

tangible value

for a service recovery it is usually best to offer the customer tangible values rather than monetary compensation

guarantees

an assurance of fulfillment of the a condition (can be a competitive advantage)

Unconditional promise

guarentee that if something goes wrong then there are no string attached (increases customer loyalty)

meaningful promise

the payout should cover fully the customers dissatisfaction

absolete products

keep replacing for a better version of product, extend the life cycle of a product

Line of interaction

between you and customer

line of visibility

anything past the customer (what the customer doesn’t see)

line of internal interaction

 things between the staff that customer never sees

physical environment (service scape)

ambient conditions (noise, odor, temperature, air quality), space/function (layout, equipment, furnishings)

Stimulus (holistic environment)

perceived servicescape

organism (the customer)

Internal customer responses, Employee responses (cognitive, psychological, emotional)

Response

behaviors, response, social interactions

Pleasant and arousing =

exciting

Pleasant and non-arousing =

relaxing

Unpleasant and non-arousing =

gloomy

Physiological aspects

noise, temprature, air quality, lighting

Arousal seekers

enjoy and look for high levels of stimuli 

Arousal avoiders

prefer a lower level of stimulation

Ideal expectations or desires

“everyone says this restaurant is as good as the one in France and I want to go somewhere special for my anniversary

Normative “should” expectations

As expensive as this restaurant is, it ought to have excellent food and service

Experience based norms

Most times this restaurant is very good but when it gets busy service is slow

Acceptable expectations

I expect this restaurant to serve me in an adequate manner

Minimum tolerable expectations

i expect terrible service from this restaurant but come because the price is low