Marketing Chapter 10: Services

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Questions and Answers

Why do service providers offer lower prices at certain times, such as ski areas at night?

To increase service quality

To stimulate demand (correct)

To limit customer expectations

To decrease competition

What contributes to the knowledge gap in service delivery?

Insufficient customer research (correct)

High employee turnover

Lack of training programs

Inadequate marketing strategies

What influences customer expectations according to the document?

Only personal experiences

Recommendations from peers

Service type and situational context (correct)

Promotional marketing

What is essential for service providers to achieve high service standards?

Proper training for staff Signup and view all the answers

How does Lou’s Local Diner perform compared to Well-Known National Chain on service quality?

Better in most dimensions Signup and view all the answers

What is one primary benefit of empowering service providers?

It allows employees to make decisions about service delivery. Signup and view all the answers

Which type of support is specifically mentioned as essential for service providers?

Emotional support Signup and view all the answers

How can technology impact customer service according to the content?

By providing access to a wider variety of services. Signup and view all the answers

What does The Keg do to encourage excellent service from employees?

Rewards employees for excellent service. Signup and view all the answers

What role does Google Analytics play in service delivery?

It helps predict the success of movies for theatres. Signup and view all the answers

What is a crucial step in managing customer expectations?

Promise only what you can deliver Signup and view all the answers

Which of the following best exemplifies a method for recovering goodwill after a service failure?

Listening to the customer and giving them a free dessert Signup and view all the answers

What can happen if service failures are not resolved quickly?

Customer irritation may increase Signup and view all the answers

What type of fairness involves the procedures perceived by customers during service recovery?

Procedural fairness Signup and view all the answers

How can firms increase service recovery effectiveness?

By prioritizing quick resolution of issues Signup and view all the answers

What principle highlights the lack of physical presence in services compared to products?

Intangibility Signup and view all the answers

Which gap in the Gaps model focuses on the difference between customer expectations and management perceptions?

Knowledge gap Signup and view all the answers

Which strategy can firms employ to assist employees in delivering exceptional service?

Providing extensive training Signup and view all the answers

What is a key recovery strategy to address service failures?

Apologizing and providing compensation Signup and view all the answers

What can be described as a unique aspect of service marketing compared to product marketing?

Services are inconsistent Signup and view all the answers

Study Notes

Chapter 10: Services: The Intangible Product

Services marketing differs from product marketing. Key distinctions include: intangibility, inseparability, inconsistency, and inventory.
Intangibility: services cannot be touched, tasted, or seen. Cues like atmosphere and imagery are used to communicate value.
Inseparability: Production and consumption happen concurrently. This limits the ability to test the service before use. Guarantees and warranties can mitigate this lack of testing.
Inconsistency: The variability in service quality is due to service being people-based. This necessitates employee training and standardization to minimize inconsistency. Bundled packages, self-service technology, and use of the internet can also help reduce variability.
Inventory: Services are perishable, meaning they cannot be stored. Service providers offering tickets at reduced rates at off-peak hours is a strategy to use up the inventory of unsold capacity.
Service quality dimensions include reliability, responsiveness, assurance, empathy, and tangibles, as well as using technology to enhance service.
The Knowledge Gap: Marketing research helps understand customer expectations.
The Standards Gap: Training improves service standards. Setting high standards is important for achieving service goals.
The Delivery Gap: Strategies to deliver service quality may include empowering employees to make decisions about service, providing support & incentives for employees, and use of technology.
The Communication Gap: Managing customer expectations, fulfilling promises, and communicating service expectations well are key to effective communication.
Service Recovery: Listening to customers, solving problems quickly, and providing fair solutions are essential for effective service recovery. Distributive and procedural fairness are important elements when resolving issues.

Gaps Model

The Gaps model outlines four gaps in service delivery: Knowledge Gap, Standards Gap, Delivery Gap, Communication Gap. These gaps highlight the differences between customer expectations and perceptions of service quality.

Economic Importance of Service

Developed economies increasingly rely on service-oriented industries.
Production costs of some services are lower in other countries.
The service sector has expanded due to increased importance placed on conveniences and leisure. Demand for services that support other industries has increased.

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Description

Explore the unique characteristics of services marketing in Chapter 10. Understand the critical distinctions including intangibility, inseparability, inconsistency, and inventory, and how these impact service delivery and customer perception. Learn strategies for enhancing service quality and managing service inventory.