Chapter 10 - The intangible Product

What is a service?

An intangible offering that cannot be physically possessed, involving an act, performance, or effort.

What does customer service refer to?

Human or mechanical activities firms undertake to help satisfy their customer's needs and wants.

How does good customer service add value?

By enhancing the overall customer experience and satisfaction with products.

What is the Service-Product Continuum?

A spectrum that illustrates the range from pure services to pure products.

What percentage of the Canadian workforce is employed in the service sector?

Almost 80%.

Why has the service sector grown in developed economies?

Manufacturing is cheaper in less-developed countries, and there is a higher value placed on convenience and leisure.

What are some examples of specialized services?

Plumbers, personal trainers, massage therapists, tax preparation specialists, lawyers, travel specialists, and healthcare providers.

What are the Four I's of service marketing?

Intangible, Inseparable, Inconsistent (Variable), and Inventory (Perishable).

What does 'intangible' mean in the context of services?

A characteristic of a service that cannot be touched, tasted, or seen.

What does 'inseparable' mean in service delivery?

The production and consumption of a service occur simultaneously.

What is meant by 'inconsistent' in service quality?

Service quality may vary because it is provided by humans, leading to potential variability in customer experience.

How can service providers reduce inconsistency?

Through training and standardization of service delivery.

What is one way to address service inconsistency?

Replacing human service providers with machines for simple transactions.

What is an example of a service that cannot be stockpiled?

A yoga class, which is perishable and cannot be stored for future use.

What happens during excess demand for a service?

Customers may be turned away during peak periods.

What is the Knowledge Gap in service marketing?

The difference between customers' expectations and the firm's perception of those expectations.

What is the purpose of the Gap Model for Improving Service?

To identify and address discrepancies between customer expectations and service delivery.

What is an example of a tangible cue in service marketing?

Waiting rooms stocked with TV sets, toys, and free Wi-Fi access.

How can dental practices manage appointment cancellations?

By making advance reminder calls or charging cancellation fees.

What is the impact of technology on service inconsistency?

It can reduce variability in service delivery, such as through internet-enabled kiosks.

What is the role of customer expectations in service delivery?

Customers have specific expectations about how a service should be delivered, which firms must meet.

What is the significance of the aging population for service industries?

It has increased the demand for healthcare specialists, including doctors and caregivers.

What is an example of a service that can be standardized?

Enterprise Rent-Car standardizes its service delivery across locations.

How do service providers enhance customer experiences?

By creating a comfortable atmosphere and offering tangible items related to the service.

What is the challenge of conveying the benefits of services?

The intangibility of services makes it difficult for marketers to communicate their value.

What is an example of a service that varies by location?

Planet Fitness varies its offerings to match local member preferences.

What is the importance of service quality in marketing?

High service quality is crucial for customer satisfaction and retention.

What are customer expectations based on?

Their knowledge and experiences.

How do customer expectations vary?

According to the type of service and the situation.

What makes evaluating service quality difficult for customers?

The intangibility of service quality.

What is reliability in service quality?

The ability to perform the service dependably and accurately.

Define responsiveness in the context of service quality.

The willingness to help customers and provide prompt service.

What does assurance refer to in service quality?

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

What is empathy in service quality?

The caring, individualized attention provided to customers.

What are tangibles in service quality?

The appearance of physical facilities, equipment, personnel, and communication materials.

What is the standards gap?

The difference between the firm's perceptions of customers' expectations and the service standards it sets.

How can firms achieve service goals?

By setting specific, measurable goals and training employees accordingly.

What is the delivery gap?

The difference between the firm's service standards and the actual service it provides.

How can delivery gaps be reduced?

By empowering employees to act in the customers' and firm's best interests.

What is empowerment in service delivery?

Allowing employees to make decisions about how service is provided to customers.

What role does technology play in service delivery?

It changes the way firms do business and can help close delivery gaps.

What is the communication gap?

The difference between the actual service provided and what the firm's promotion promises.

How does good service quality affect customer satisfaction?

It leads to satisfied and loyal customers.

What is service recovery?

The process of attempting to make amends with the customer after a service failure.

Why is listening to the customer important?

It helps firms understand service failures and improve their service.

What does fairness mean in the context of customer service?

A customer's perception of benefits received compared to costs incurred.

What is a key aspect of resolving service problems quickly?

The longer it takes to resolve a failure, the more irritated the customer will become.

How can firms encourage customer feedback?

By welcoming complaints and making it easy for customers to provide feedback.

What is the importance of training employees in service delivery?

To ensure they can meet service standards and handle customer interactions effectively.

What is the impact of empowered employees on customer service?

They can resolve issues more effectively, leading to better customer satisfaction.

What is the role of management in service quality?

Management sets the tone for service quality and employee attitudes.

How can technology enhance customer service?

By providing tools that assist employees and improve customer interactions.

What is the significance of emotional support for service providers?

It helps them feel valued and empowered to make decisions.

What are some examples of technology used in customer service?

Self-service kiosks, virtual reality tours, and chatbots.

What does the term 'zone of tolerance' refer to?

The range of service quality that customers are willing to accept.

Ways to reduce variability/inconsistency

• Internet enabled kiosks

• Replace people with machines

• Training and standardization

Providing great service: The 4 Gaps

• Knowledge Gap

• Standards Gap

• Delivery Gap

• Communications Gap

The Knowledge Gap: Kowing what Customers Want

• Marketing research

  • Understanding customers

• Understanding customer expectations

• Evaluating service quality

The knowledge Gap: Evaluating Service Quality  

• Reliability

• Responsiveness

• Assurnace

• Empathy

• Tangibles

The knowledge Gap: Zone of Tolerance

• What is the desired and expected level of service for each dimension?

• What are customers’ perceptions of how well the focal service performs and how well a competitive service performs?

• What is the importance of each service quality dimension?

The standards Gap: Setting Service Standards 

• Achieve service goals through training  

• Commitment to service quality 

The delivery gap: Delivery Service Quality  

• Empower employees

• Reduce delivery gaps

• Provide support and incentives

• Use technology

The delivery gap: Empowering service providers

Allowing employees to make decisions about how service is provided to customers 

The delivery gap: Providing Support and Incentives 

• Provide emotional support to service providers

• Provide instrumental support necessary to deliver service

• Consistent and coherent management

• Reward employers for excellent service

The delivery gap: Using technology

Technology can provide many benefits  

• Access to a wider variety of services  

• Greater degree of control by the customer  

• Ability to obtain information 

The communication Gap: Communicating the service promise 

• Manage customer expectations  

• Promise only what you can deliver 

• Communicate service expectations 

Service Recovery (increase)

• Listen to the customer

• Resolve problems quickly

• Provice a fair solution

Involvement of the customer pertains to….

inseparability

Services are ____ because they cannot be held in inventory

perishable

The zone of tolerance refers to…

The area between customers' desired expectations and the minimum level of acceptable service