Service Marketing Concepts

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Questions and Answers

Which of the following would be classified under Entertainment Services?

Emergency medical services

Rock concerts (correct)

Lawn care service

Automobile repairs

What type of service would shipping and transportation fall under?

Information Services

Supply Services (correct)

Nonprofit Services

Personal Services

Which category includes services like employment and hairstyling?

Personal and Maintenance Services (correct)

Entertainment Services

Supply Services

Governmental Services

What is a characteristic of Quasi-Governmental services?

They are partially independent agencies like the U.S. Postal Service. Signup and view all the answers

Which of the following is a method of classifying services according to Lovelock's framework?

Method of service delivery Signup and view all the answers

What is the concept of Internal Marketing primarily focused on?

Treating employees as internal customers Signup and view all the answers

Which definition best captures the essence of services according to the American Marketing Association?

Intangible activities that provide want satisfaction Signup and view all the answers

What component of service is critical for shaping customer perceptions?

Service Delivery Signup and view all the answers

What potential issue can arise from the rush to automate service functions?

Systems that may perform poorly or inefficiently Signup and view all the answers

Which type of service is characterized by low risk and minimal customer effort?

Convenience services Signup and view all the answers

Which of the following best describes Service Product?

An activity that can provide benefits but has no tangible existence Signup and view all the answers

What plays a significant role in influencing customers' impressions of service?

Service Environment Signup and view all the answers

What does the Law of the Hammer metaphor suggest about perception?

Familiar tools can lead to an oversimplified view of problems Signup and view all the answers

Which statement about services is correct regarding creation and consumption?

Services are created as they are consumed Signup and view all the answers

What issue is related to technology design persisting beyond its functional value?

Technology Lock Signup and view all the answers

Which statement best describes shopping services?

They necessitate customer preference and evaluations. Signup and view all the answers

In the context of service design, what is crucial to achieving customer satisfaction?

Delivering core benefits effectively Signup and view all the answers

What is NOT a characteristic of physical products?

They provide satisfaction through activities Signup and view all the answers

What term describes the point of contact where customer interface design issues often arise?

Last Inch Signup and view all the answers

What might be a consequence of customer service technology being a 'time sink'?

Time wasted on ineffective processes Signup and view all the answers

Which type of service does not typically involve a strong customer preference for a specific provider?

Convenience services Signup and view all the answers

What is the purpose of customer service evaluations for companies?

To gather honest feedback about service levels Signup and view all the answers

How does culture impact consumer behavior?

It molds target audiences and influences product sales Signup and view all the answers

What does Customer Lifetime Value (CLV) represent?

The average revenue generated from a customer over time Signup and view all the answers

What is a service encounter?

The first interaction a customer has with a service Signup and view all the answers

Yield management systems primarily utilize which of the following methods?

Historical data and algorithms for pricing Signup and view all the answers

Which statement is true about service quality?

It compares delivery of services to customer expectations Signup and view all the answers

What is the concept of customer profitability (CP)?

The profit made from serving a specific customer over time Signup and view all the answers

What defines a service failure?

When service performance does not meet customer expectations Signup and view all the answers

What does a franchisor provide in a franchise arrangement?

A trademark and a business system Signup and view all the answers

What is the main focus of demand management?

Shifting demand to better match capacity Signup and view all the answers

What does service recovery aim to achieve?

Convert dissatisfied customers into loyal ones Signup and view all the answers

What is the purpose of a tourism marketing strategy?

To outline the current market position and future goals Signup and view all the answers

What role does a guestologist fulfill in an organization?

To understand and plan for customer expectations Signup and view all the answers

What does logistics management primarily involve?

Identifying distributors and suppliers Signup and view all the answers

What distinguishes an Educational Consultant from a school counselor?

They are usually self-employed or work for consulting firms Signup and view all the answers

What is the goal of strategic planning in healthcare organizations?

To establish long-term objectives and goals Signup and view all the answers

Study Notes

Services Definition

Services are activities, benefits, or satisfaction offered for sale or provided in connection with the sale of goods.
Services are separately identifiable, essentially intangible activities, that provide satisfaction when marketed to consumers and/or industrial uses.

Characteristics of Services

Physical Product: Involves the transfer of ownership, tangible, and quality is standardized.
Service Product: Intangible, quality can vary, and consumed at the same time it's produced.
Service Environment: The impression consumers get, based on the physical surroundings, like clean restaurants, flexible dining hours, decor, and exotic menus.
Service Delivery: The rendering of the service to customers, it greatly impacts customer's perception of quality.
Service Design: Involves creating and delivering core benefits to satisfy customer needs.

Key Concepts in Service Marketing

Customer Service Evaluations: Feedback about employee service levels, can be done online, in person, by phone, or through focus groups.
Culture: Influences consumer behavior and determines what products sell well in certain demographics and regions.
Customer Expectations: Formed from gathered information about a product or service.
Service Quality: Evaluates how services are delivered compared to customer expectations.
Service Encounter: Customer's first interaction with a service or product, a key component in service marketing.
Relationship Marketing: Focuses on customer retention, satisfaction, and lifetime value.
Customer Lifetime Value: Average revenue generated by a customer over their entire relationship with a company.
Customer Profitability: The profit a firm makes from serving a customer or customer group over a specific period.
Service Recovery: A company's resolution of a problem from a dissatisfied customer, converting them into a loyal one.
Service Failure: Service performance that fails to meet customer expectations.
Franchise: A business system involving a franchisor (establishes brand and system) and a franchisee (pays royalty for the right to operate).
Demand Management: Attempts to shift demand.
Capacity Management: A response to demand.
Yield Management Systems: Use historical data and algorithms to determine optimal prices based on demand.
Strategic Planning in Healthcare: Creates long-term objectives and goals for the organization.
Guestologist: Understands and plans for customer expectations before they enter the service setting, ensuring a successful experience.
Tourism Marketing Strategy: Outlines the current market position, objectives, and methods to achieve them.
Logistics: Managing the acquisition, storage, and transportation of resources.
Educational Consultant: Helps students and organizations with educational planning.
Entertainment Service Management: System for coordinating field service operations, including scheduling, dispatching, and invoicing.
Public Utilities: Services provided by the government or state, like electricity, gas, and water.
Integrated Services (IntServ): An architecture that guarantees quality of service on networks.

Lovelock's Classifications of Services

Nature of Service Act: Focused on what or whom the service is directed (a thing or a person) and whether the service act is tangible or intangible.
Relationships with Customers: The level of interaction and personalization involved in the service.
Degree of Customization: The extent to which a service is tailored to individual customer needs.
Degree of Demand Fluctuation: How much demand varies over time (seasonality, day of the week, etc.).
Method of Service Delivery: How the service is delivered, including location, technology, and staffing.
Supplementary Service Petals: These are the different types of services that surround the core service performance.

Supplementary Service Petals (Flower Model)

Information: Providing customer information about the service through online, print, or human resources.
Consultation: Offering expert advice and guidance to customers before, during, or after the service.
Order Taking: Enabling customers to request, customize, and purchase the service.
Billing: Handling payment for the service, including invoices and payment options.
Reservation: Allowing customers to schedule and reserve the service in advance.
Hospitality: Creating a welcoming and comfortable environment for customers.
Safekeeping: Ensuring customer belongings are safe and secure during the service.
Exceptions: Handling special requests, deviations from the standard service delivery, and resolving complaints.

Internal Marketing

Internal Marketing: Treating employees as internal customers of the service organization, responding to their needs, and promoting organizational policies to employees.

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Description

Test your understanding of services and their characteristics in the context of marketing. This quiz covers key concepts, including service delivery, design, and customer perceptions. Evaluate how these elements impact consumer satisfaction.