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Questions and Answers

What is a likely outcome for satisfied customers after making a purchase?

Switching to a different vendor

Increased cognitive dissonance

Negative word-of-mouth communication

Repeat purchases (correct)

How does cognitive dissonance impact customer behavior?

It can cause doubt about the right decision made. (correct)

It guarantees positive feedback to the company.

It prevents repeat purchases.

It leads to constant satisfaction with purchases.

Which of the following factors does NOT influence employee motivation according to the provided characteristics?

Feedback received

Visibility of outcomes

Job variety

Length of service in the organization (correct)

What behavior might dissatisfied customers exhibit following a negative experience?

Switching to another vendor Signup and view all the answers

Which characteristic can lead to increased motivation among employees?

High autonomy in their tasks Signup and view all the answers

Which of the following is a consequence of customer satisfaction?

Increased customer loyalty towards the organization Signup and view all the answers

What primarily influences the overall customer satisfaction process?

The service delivery process created to meet customer needs Signup and view all the answers

What happens if service quality is inferior?

Customers are inclined to purchase from competitors Signup and view all the answers

What is the likely behavior of a customer who experiences dissatisfaction?

They are likely to tell several other potential customers about their negative experience Signup and view all the answers

What is a key factor in forming customer expectations?

The objective quality of service provided Signup and view all the answers

What is critical for an organization to enhance customer satisfaction?

To assess customer expectations accurately Signup and view all the answers

Which of the following best describes the concept of perceived quality?

The customer's assessment of the actual service delivered Signup and view all the answers

What should employees do to effectively handle complaints from customers?

Always respond positively and supportively Signup and view all the answers

How can organizations learn to improve their service quality?

By observing successful organizations Signup and view all the answers

What behavior is associated with customer dissatisfaction?

Searching for alternatives or better options Signup and view all the answers

What role do effective systems play in customer service?

They allow for better measurement and management of service Signup and view all the answers

Which action contributes to creating a positive perception of service delivery?

Exceeding customer service expectations Signup and view all the answers

What is a key attitude employees must maintain when interacting with customers?

Showing respect and politeness at all times Signup and view all the answers

Study Notes

BEM 120 - Summary Marketing Management

This document is a summary of marketing management from the University of Pretoria.
A QR code is provided for easy access on Studocu.
Studocu is not affiliated with any specific university or college.
The document was downloaded by Wayne Redmond ([email protected]).

Chapter 1: Service Marketing in Perspective

Marketing exchange is a complex process where organizations identify target market expectations and satisfy customer needs.
Environmental scanning is crucial for service organizations to scrutinize wider market environments before launching new ideas.
The 7 P's (product, price, place, promotion, people, process, physical evidence) form the service marketing mix.
Product refers to the technical outcome of the service, and is difficult to standardize.
Physical evidence can be used to reduce perceived risks of purchasing services (e.g. brochures).
People (employees) and processes are integral parts of service delivery and act as marketers.
Place considers various distribution channels relevant to the customer and the service's nature.
Pricing decisions cover cost coverage, profit generation, and details like discount structure and payment terms.
Promotion influences knowledge, attitude, and behaviour concerning a service to influence the customer.
The Six E's (Expectations, Education, Experience, Ease of doing business, Equilibrium, and Expectation Management) are crucial in service marketing.
Defining a service: A service is an act or intangible performance offered by one party to another, often not tied to a physical product. Service failure occurs when service performance does not meet customer expectations.

Chapter 2: Value: From Customer Service to Satisfaction

Customer satisfaction = Customer Perceptions - Customer Expectations.
Higher service quality leads to increased market share and value proposition improvements, impacting financial performance positively.
Value is the difference between perceived benefits and costs in a service exchange.
This is evaluated on both the service's technical components and supportive service acts.
Search qualities are attributes evaluated pre-purchase, while experience qualities are assessed during and after consumption.
Customer-centred service delivery systems are crucial (e.g., using customer-centric perspectives to plan service delivery systems).
Certain customer service commandments (not exam-relevant) are mentioned

Chapter 3: Service Marketing Research

Technology plays a significant role in improving service quality, enabling better customer understanding.
Neuromarketing uses neuroscience to understand consumer preferences.
Marketing research is essential for effective decision-making.
Criteria for evaluating good information include accuracy, timeliness, adequacy, availability, and relevance.
Research can be done on customers, staff (or employees), and the organization itself for effective decision-making and service improvements.
Specific tools/methods for conducting service-oriented research include customer surveys, panels, observational studies, mystery shoppers, complaint analyses, social media monitoring, using SERVQUAL, and analysis of other industry data.

Chapter 4: Product

Service product: Offering provided by the organization to customers.
Core service: The benefit the customer expects.
Expected service: The minimum expectation of the customer.
Desired service: The ideal service expectations beyond the expected.
Segmentation: Identifying groups of customers to better tailor services/identify markets
Positioning: Differentiating a service from competitors.
Service positioning is crucial; it is essential for organizations to differentiate their service products, focusing on target market perceptions of the service.
Service life cycle describes sales fluctuations of a service over time Stages are Introduction, Growth, Maturity, Decline.
New service product development includes major/minor service/process innovations, or improvements to existing offerings.

Chapter 5: Physical Evidence

Physical evidence (servicescape): Tangible aspects of the service environment.
Physical evidence based on utilization includes self-service, interpersonal service, and remote service.
Physical evidence based on complexity includes basic and detailed environments.
Designing physical environments affects customer perception, service quality, and organizational image.

Chapter 6: People

Customer's first impression is often based on interactions with employees. Effective employee management directly affects service excellence.
Types of service employees include support and contact personnel. (Support personnel manage the internal production process).
Boundary spanners: Employees communicating between internal and external environments, affecting perceptions of the organisation's image and reputation.
Employee capabilities include technical knowledge, customer service skills, interpersonal and teamwork abilities.
Recruitment, selection, training, & motivational/job characteristics are key employee management issues.

Chapter 7: Process

Service encounter: Period when the customer interacts directly with the service.
Quality control is critical when the service and consumption happen simultaneously.
Service location impacts customer satisfaction.
Service blueprinting clarifies service operations (flows, costs, and bottlenecks).
Managing customer waiting times is key in service process management.
Techniques for managing customer waiting and queuing include operational management, and perception management which involves altering perceived waiting times without altering the actual waiting time.
Service recovery efforts are crucial in reducing negative impact on customer loyalty, addressing complaints, and handling post-purchase issues.

Chapter 8: Place/Distribution

Distribution aims to enhance availability and accessibility of services.
Distribution objectives include coverage and contact points.
Distribution channels can be direct, indirect, or multi-channel.
Distribution problems can arise from excessive production capacity or demand issues (negative demand, no demand, latent demand, declining demand, irregular demand, full demand, overfull demand, or unwholesome demand).
Strategies for balancing supply and demand in distribution include adjusting equipment/resources, training personnel, increasing capacity, and changing operating hours.

Chapter 9: Pricing

Pricing is the financial exchange between service providers and customers influenced by cost, competition, and demand.
Pricing objectives differ based on context (survival, sales maximisation, prestige, social consideration, stimulating patronage). There are different pricing methods (e.g. cost-plus, rate-of-return, activity-based costing).
Pricing depends on customer perception of value and related costs (monetary, physical, time, sensory, and mental costs).
Different segments respond to price changes differently (e.g., time-based pricing, purchase-based pricing, customer-based price).
Pricing strategies include price-skimming, penetration pricing, and contingency pricing, with each having advantages and disadvantages.

Chapter 10: Promotion

Promotion's purpose is to inform, persuade, and influence customer behavior regarding the service.
Promotion objectives include building brand awareness, differentiating the service, and persuading customers to purchase or use the service.
A communication process is involved, including the objective, source, message, encoding, medium, audience decoding, distraction, and audience response.
Types of promotion include advertising, sales promotion (coupons, sampling, premiums, competition, discounts, frequency programmes), personal selling, public relations, and word-of-mouth.
Direct marketing methods are used to target specific customer groups (e.g., telemarketing, direct mail, email, direct response media, mobile marketing, and social media marketing).