Luxury Services and the 7 Ps of Marketing

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Questions and Answers

What distinguishes luxury goods from luxury services?

Luxury goods can be stored until sold, whereas luxury services are perishable. (correct)

Luxury services are easier to objectively measure than luxury goods.

Luxury goods are intangible while luxury services are tangible.

Luxury services are often homogeneous due to rigorous quality control.

How is the consumption of luxury services characterized?

It occurs in real time and can vary based on many factors. (correct)

It results in a transfer of ownership similar to that of goods.

It is consistent because of rigorous quality control measures.

It is objectified and can be easily measured.

What type of consumption do customers engage in when they purchase luxury services?

Material consumption.

Experiential consumption. (correct)

Tangible product acquisition.

Financial investment.

Which statement best describes the quality control of luxury goods versus luxury services?

Luxury goods benefit from rigorous quality control making them homogeneous. Signup and view all the answers

What is a key characteristic of luxury services compared to goods?

Their quality can differ based on the context of the service. Signup and view all the answers

What happens to the perception of luxury when consumers are exposed to it too frequently?

It transforms into an everyday experience. Signup and view all the answers

Which of the following describes a factor that contributes to insatisfaction?

Relational aspects Signup and view all the answers

What is necessary for emotional satisfaction in relation to functional aspects?

Mastery of functional aspects Signup and view all the answers

Which combination of aspects is heavily influential on emotional satisfaction?

Sensory and relational aspects Signup and view all the answers

What type of knowledge is essential for mastering professional movements?

Knowledge of professional tools Signup and view all the answers

What can lead to an aggressive behavior from customers during interactions?

Excessive submission by the staff Signup and view all the answers

Which aspect is crucial for making customers feel they have a unique experience?

Generosity that goes beyond commercial concerns Signup and view all the answers

Which of the following best describes the principle of 'Politeness 3.0'?

Psychological approaches based on sincerity and simplicity Signup and view all the answers

What is an essential action for staff to address customer needs effectively?

Putting themselves in the customer’s shoes Signup and view all the answers

What can be dangerous for staff when demand exceeds supply?

A mindset of superiority Signup and view all the answers

What aspect of customer interaction is emphasized for the staff in contact with clients regarding the Birkin Bag?

Staff should know the clientele and be pleasant. Signup and view all the answers

What is a defining characteristic of the purchasing process for the Birkin Bag?

It is only available by order requiring a visit to the premises. Signup and view all the answers

Which of the following best describes 'physical evidence' in the context of the Birkin Bag?

Any element that may convince consumers of the offer’s legitimacy. Signup and view all the answers

How does long-term ownership affect a firm's control over the customer experience?

It may create challenges outside a firm’s control. Signup and view all the answers

What is indicated as a challenge related to conspicuous consumption?

Counterfeiting is a challenge faced by the luxury market. Signup and view all the answers

Which of the following components is NOT part of the 7Ps framework for analyzing the Birkin Bag?

Purpose Signup and view all the answers

What role does the process play in the customer journey for the Birkin Bag?

It involves a greeting by staff and an initial glimpse of the Hermès universe. Signup and view all the answers

Which option best illustrates the importance of time-based experiences for long-term ownership?

They can occur both within and outside a firm's control. Signup and view all the answers

What is a defining characteristic of elite luxury service according to the typology of luxury services?

High monetary exclusivity Signup and view all the answers

In the context of everyday luxury service, which group is most likely to consume this service as part of their habitual consumption?

Patricians Signup and view all the answers

Which characteristic differentiates standard luxury service from elite luxury service?

Monetary exclusivity Signup and view all the answers

What describes the consumption behavior of poseurs concerning elite luxury services?

Rare aspirational consumption Signup and view all the answers

Which group is known for low consumption frequency of elite luxury services, if at all?

Parvenues Signup and view all the answers

What do proletarians commonly experience regarding standard luxury services?

They admire them but generally cannot afford them. Signup and view all the answers

Which aspect of luxury services distinguishes hedonic escapism from hedonic adaptation?

Purpose of consumption Signup and view all the answers

What is the primary focus of value creation in luxury services?

Cocreation during the interaction Signup and view all the answers

In terms of social exclusivity, how does elite luxury service compare to everyday luxury service?

It's highly exclusive. Signup and view all the answers

Which statement best describes the relationship between value anticipation and luxury services?

It takes place before the interaction. Signup and view all the answers

Which of the following groups usually engages in conspicuous consumption of standard luxury services?

Parvenues Signup and view all the answers

What distinguishes 'everyday luxury service' from 'standard luxury service' in terms of prestige?

Everyday luxury has low prestige. Signup and view all the answers

What defines the consumption behavior of patricians regarding elite luxury services?

Discreet consumption focused on intrinsic quality Signup and view all the answers

How does monetary exclusivity influence the perception of luxury services?

Higher exclusivity increases desirability. Signup and view all the answers

Study Notes

### Luxury Services

Luxury services are intangible and their objectification is difficult.
Luxury services are heterogeneous and their quality depends on the employees, customers, and other factors.
Production and consumption of luxury services happen in real time.
Luxury services are perishable and cannot be stored.
The customer receives a personal experience with a luxury service and not ownership.
The customer experiences luxury services within the firm's control.
There is no counterfeiting for luxury services.

7 Ps of Luxury

The 7 Ps of marketing are: Product, Price, Promotion, Place, People, Process, and Physical Evidence.
Staff in direct contact with customers will contribute to the consumer experience and shape the customer journey.
The customer journey from the first contact with the firm until after purchase is known as the process.
The customer's perception of the offer’s legitimacy is influenced by physical evidence.

Birkin Bag's 7 Ps

Hermès staff are expected to be knowledgeable, pleasant, and well-dressed.
Hermès stores create an exclusive experience for customers by making bags available by order only.

Typology for Luxury Services

Luxury services are categorized into everyday luxury, standard luxury, and elite luxury services.
Prestige, monetary exclusivity, social exclusivity, hedonic exclusivity, and extraordinary experiences are used to classify luxury services.
Elite luxury services are characterized by very high prestige, monetary exclusivity, social exclusivity, hedonic exclusivity, and extraordinary experiences.

Patricians, Parvenues, Poseurs, and Proletarians

Patricians consume luxury services for their intrinsic quality and prefer discreet and tasteful consumption.
Parvenues engage in conspicuous consumption of luxury services.
Poseurs aspire to consume luxury services and may engage in occasional conspicuous consumption.
Proletarians admire luxury services but may not be able to afford them.

Value Creation Process in Luxury Services

Value creation involves the firm, customer and cocreation of value.
Value learning is the process where a firm learns from customer interactions.
Value facilitation helps the customer to understand and choose the right product.
Value anticipation is how a customer perceives the value of a product before purchase.

Hedonic Escapism vs. Hedonic Adaptation

Hedonic escapism is a temporary break from everyday routines through experiencing luxury.
Hedonic adaptation is when the experience of luxury becomes ordinary due to frequent exposure.

Satisfaction and Insatisfaction

Satisfaction is not the opposite of dissatisfaction.
Both satisfaction and dissatisfaction factors can be functional, emotional, relational, and sensory.

Functional Aspects

Functional aspects include mastery of professional movements, knowledge of professional tools, knowledge of products and competitors, managing third parties, and continuously adapting.

Emotional Aspects

Emotional aspects can be experienced as superiority, servility, passivity, or guidance.
Superiority is a dangerous approach and can damage the brand image.
Servility is outdated and does not always resonate with customers.
Passivity is an approach where the customer is only answered but not engaged with.
Guidance is a more active approach where the customer's needs are taken into account in a respectful way and are met with empathy.

Turning Customer Interaction ON

"ON" interactions are customer-centric.
"ON" behaviors include: Dedication, customization, empathy, and politeness.
"ON" interactions make the customer feel heard, respected, and special.

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Description

Explore the unique characteristics of luxury services and the essential 7 Ps of marketing that shape customer experiences. Learn how these elements contribute to the perception and value of luxury offerings. This quiz delves into the challenges and nuances of managing luxury services.