BMGT350 Chapter 11 - Chapter 11 Services and Nonprofit...

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Chapter 11: Services and Nonprofit Organization Marketing Service: the result of applying human or mechanical effots to people or objects -growing market for service companies worldwide due to need for nurses, home health care, physical therapists, social workers -information managers such as computer engineers, systems analysts also increasing The marketing process is the same for goods and services; however services have some unique characteristics in which the marketing strategies need to be adjusted for 4 characteristics of services: Intangible : can’t be touched, seen, tasted, heard - Fewer search qualities: characteristic that can be easily assessed before purchase (color) - More experience qualities - assessed only after use (meal) and credence qualities- a characteristic that consumers have difficulty assessing even after purchase (medical services) Inseparability: the fact that consumers must be present to receive the service Heterogeneity: variability of inputs and outputs. Services are less standardized than goods. In order to increase standardization Ritz Carlton has daily lineup. Perishability: can’t be stored, warehoused, or inventoried. Service Quality: - reliabilit: performing the service right -responsiveness: proved prompt service -assurance: ability to convey trust -empathy: caring attention to customers -tangibles: physical evidence including facilities, tools, equipment, appearance of personnel 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 customers want and what management thinks customers want. Gap 2: the gap between what management thinks customers want and the quality specifications that
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