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Marketing Chapter 13

Services

TermDefinition
Characteristics of services Intangible (can make promotion difficult), inseparable (from provider), heterogeneous, perishable
How do people choose services? Word of mouth, reviews, past experience, external cues (e.g. appearance/smell/etc., part of the country--you expect fish to be better near the coast)
How do people evaluate services? Reliability (get the same thing each time), responsiveness (expect problems to be solved more quickly than with products), assurance (expect they do it properly), empathy, tangibles (facility, personnel, etc.)
Problems with automated service Can you tell it's automated? Does it work in non-standard situations?
What is the goal of a service? Wowing (B&N) or adequacy (cable, some airlines)? Depends on type of service, type of provider, long-term consequences, expectations that you set up
Service gaps Communications gap, knowledge gap, standards gap, delivery gap
Communications gap What the firm promises v. what they deliver--manage expectations and don't promise more than you can deliver
Knowledge gap Customer expectations v. company's understanding of those expectations--e.g. a faux-fancy restaurant setting expectations too high. (zone of tolerance = area between expectations and minimum acceptable service)
Standards gap Company's understanding of customer expectations v. the service standards it creates--e.g. a cable company that never improves its service, cleaning hotel rooms when people aren't expected to be there
Delivery gap Company's service standards v. actual service delivered--usually the easiest to get rectified. To reduce, empower employees to make decisions based on the situation, provide emotional and instrumental/technical support to employees)
What do do after a service failure Respond with empathy, allow them to vent and then ask what they want, take steps to make sure it doesn't happen again. Consider distributive fairness (perceived benefit compared to loss) and procedural fairness (the process of resolving complaints)
Created by: ejrasmus
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