mkt_3401_exam_3 notes 11-16

mkt_3401_exam_3 notes 11-16 - Chapter 11: Services and...

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Chapter 11: Services and Nonprofit Organization Marketing Service- result of applying human or mechanical efforts to people or objects o Importance of service 79% of workers are in service sector Services account for 76% of U.S. GDP Service occupations will be responsible for all job growth through 2005 Characteristics of Service o Intangibility- not a physical product as are goods o Inseparability- produced and consumed at the same time, the consumer must be present during the production o Perishability- prevents them from being stored, warehoused, or inventoried o Heterogeneity- the variability of the inputs and outputs of services, which cause services to tend to be less standardized and uniform than goods Service quality o Search quality- a characteristic that can be easily assessed before purchase o Experience quality- a characteristic that can be assessed only after use o Credence quality- a characteristic that consumers may have difficulty assessing even after the purchase because they do not have the necessary knowledge or experience o 5 Components of service quality Reliability- the ability to perform a service dependably, accurately, and consistently Responsiveness- the ability to provide prompt service Assurance- the knowledge and courtesy of employees and their ability to convey trust Empathy- caring, individualized attention to customers Tangibles- the physical evidence of service, including the physical facilities, tools, and equipment used to provide the service o Gap Model- a model identifying five gaps that can cause problems in service delivery and influence customer evaluations of service quality Gap 1- the gap between what the customers want and what management thinks customers want Gap2- the gap between what management things customers want and the quality specifications that management develops to provide the service Gap 3- the gap between the service quality specifications and the service that is actually provided Gap 4- the gap between what the company provides and what the customer is told it provides 1
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Gap 5- the gap between the service that customers receive and the service they want Here is the actual model: Marketing Mixes for Services o Services as a process People processing- takes place when the service is directed at a customer Possession processing- occurs when the service is directed at customer’s physical possessions Mental stimulus processing- refers to services directed at people’s minds Information processing- describes services that use technology or brainpower directed at a customer’s assets o Core service- the most basic benefit the consumer is buying o Supplementary services- a group of services that support or enhance the core service o Mass Customization- a strategy that uses technology to deliver customized services on a mass basis Service Distribution Strategy o Convenience o Number of outlets o Direct vs. Indirect distribution
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mkt_3401_exam_3 notes 11-16 - Chapter 11: Services and...

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