Podcast
Questions and Answers
What characteristic of services refers to their inability to be displayed or physically assessed before purchase?
What characteristic of services refers to their inability to be displayed or physically assessed before purchase?
Which characteristic of services implies that they cannot be stored for future use?
Which characteristic of services implies that they cannot be stored for future use?
What is the term for the variability in service quality based on who provides the service?
What is the term for the variability in service quality based on who provides the service?
Why is it challenging to maintain quality in service delivery?
Why is it challenging to maintain quality in service delivery?
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What is a method to reduce the loss of revenue due to service perishability?
What is a method to reduce the loss of revenue due to service perishability?
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Which characteristic of services refers to the necessity of interaction between the provider and the customer?
Which characteristic of services refers to the necessity of interaction between the provider and the customer?
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What implication does the lack of ownership in services have for customers?
What implication does the lack of ownership in services have for customers?
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How can service marketers enhance the tangibility of their services?
How can service marketers enhance the tangibility of their services?
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Which properties are typically associated with intangible products like services?
Which properties are typically associated with intangible products like services?
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What is the main focus of internal marketing?
What is the main focus of internal marketing?
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What do the five gaps identified by SERVQUAL illustrate?
What do the five gaps identified by SERVQUAL illustrate?
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In the context of relationship marketing, what does emotional loyalty refer to?
In the context of relationship marketing, what does emotional loyalty refer to?
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Which of the following is NOT a strategy for service recovery?
Which of the following is NOT a strategy for service recovery?
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How is trust defined in the context of customer relationships?
How is trust defined in the context of customer relationships?
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What is an example of a psychological indicator of customer relationship intensity?
What is an example of a psychological indicator of customer relationship intensity?
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Which of the following elements is NOT part of the 7P's of services marketing?
Which of the following elements is NOT part of the 7P's of services marketing?
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What characteristic distinguishes collaborative exchange from market exchange?
What characteristic distinguishes collaborative exchange from market exchange?
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What primarily drives price loyalty?
What primarily drives price loyalty?
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Which stage of the Customer Relationship Life Cycle involves an increase in transactions?
Which stage of the Customer Relationship Life Cycle involves an increase in transactions?
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Which of the following is an experience property of services?
Which of the following is an experience property of services?
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What aspect of service differentiation can lead to price competition?
What aspect of service differentiation can lead to price competition?
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Which of the following best describes the principle of relationship marketing?
Which of the following best describes the principle of relationship marketing?
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Services can be owned by customers as they are tangible products.
Services can be owned by customers as they are tangible products.
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The perishability of services means they can be stored for future consumption.
The perishability of services means they can be stored for future consumption.
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Intangibility allows customers to assess services through visual or physical inspection before purchase.
Intangibility allows customers to assess services through visual or physical inspection before purchase.
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Variability in services means their quality can be consistent across all providers.
Variability in services means their quality can be consistent across all providers.
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The lack of ownership in services implies that customers fully possess the service after utilizing it.
The lack of ownership in services implies that customers fully possess the service after utilizing it.
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Evidence management helps to make intangible services more tangible by showcasing features and benefits.
Evidence management helps to make intangible services more tangible by showcasing features and benefits.
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Service marketers often utilize differential pricing to counteract the issue of perishability.
Service marketers often utilize differential pricing to counteract the issue of perishability.
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Inseparability indicates that the production and consumption of services can be separate processes.
Inseparability indicates that the production and consumption of services can be separate processes.
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Interactive marketing focuses on the relationship between customers and service providers.
Interactive marketing focuses on the relationship between customers and service providers.
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Intangible products can be evaluated based on their search properties.
Intangible products can be evaluated based on their search properties.
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Service recovery strategies only involve monetary compensation.
Service recovery strategies only involve monetary compensation.
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Emotional loyalty is driven by personal identification with a brand's values and benefits.
Emotional loyalty is driven by personal identification with a brand's values and benefits.
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The service marketing triangle includes internal, interactive, and external marketing.
The service marketing triangle includes internal, interactive, and external marketing.
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Joint cooperation is a characteristic of market exchange.
Joint cooperation is a characteristic of market exchange.
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Customer relationship intensity is measured through psychological, behavioral, and economic indicators.
Customer relationship intensity is measured through psychological, behavioral, and economic indicators.
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Credence properties of services can be easily evaluated even after purchase.
Credence properties of services can be easily evaluated even after purchase.
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The two main forms of loyalty discussed are emotional loyalty and privilege loyalty.
The two main forms of loyalty discussed are emotional loyalty and privilege loyalty.
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Service differentiation can lead to increased price competition.
Service differentiation can lead to increased price competition.
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Trust in a customer relationship is related solely to the customer's expectations.
Trust in a customer relationship is related solely to the customer's expectations.
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The Customer Relationship Life Cycle includes stages like acquisition, development, retention, and decline.
The Customer Relationship Life Cycle includes stages like acquisition, development, retention, and decline.
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Satisfaction in a relationship is strictly about exceeding customer expectations.
Satisfaction in a relationship is strictly about exceeding customer expectations.
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The principles of relationship marketing are solely focused on loyalty schemes.
The principles of relationship marketing are solely focused on loyalty schemes.
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Study Notes
Services and Relationship Marketing
- Service Definition: A service is any intangible act or performance offered by one party to another. Ownership isn't possible, though service processes can be tied to physical goods.
- Intangibility: Services can't be seen, tasted, or smelled before purchase. Customers use cues (intrinsic and extrinsic) to aid purchasing decisions (e.g., price signaling quality). Evidence management (e.g., reviews) makes services more tangible. Evidence can include pictures, music, use of labels, reviews, partnerships with trusted companies, etc.
- Perishability (Inventory): Services are produced and consumed simultaneously, so they can't be stored. Strategies to minimize lost revenue include differential pricing (lowering prices during quieter times) and charging for missed appointments.
- Inconsistency (Variability): Service quality varies depending on the provider, time, place, and manner of service delivery. Focus on employee training, motivation, and standardization of processes to mitigate this. This includes recruiting the right employees, providing training, motivating staff with incentives, and increasing visibility of service employees.
- Inseparability: Services are consumed at the point of production. Interaction between provider and customer creates value, often in the presence of other customers. High demand can be challenging (e.g., limited staff).
- Lack of Ownership: No tangible product is transferred during service delivery. This makes protection difficult. All employees involved must be considered (e.g., sales and administration), and physical surroundings matter (e.g., hotel atmosphere). Trust and word-of-mouth are essential for intangible services. (e.g., doctor, dentist)
Service Processes
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Service Encounters: Direct customer interaction with a service provider during a specific time period.
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Service Differentiation: Difficult to compare before purchase, potentially leading to price competition. Consumers, perceiving similar services, prioritize price over provider differences.
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Different Types of Products and Evaluation: Tangible products are evaluated using search properties (color, size, style...), services are evaluated using experience properties (evaluated after purchase/use), and services from specialized providers depend on credence properties (difficult to evaluate even after purchase/use).
Service Marketing Triangle
- Internal Marketing: Providing a positive experience for staff to attract and retain good employees.
- Interactive Marketing: Managing the relationship between staff and customers.
- 7 Ps of Services Marketing: The traditional 4Ps (Product, Price, Place, Promotion) extended to include People, Process, and Physical Evidence. Service innovations are easily copied, requiring constant innovation and brand building (consistent image). Focus on innovative options, brand image (signals tangible value), and managing intangibility & variability.
Measuring Service Quality and Performance (SERVQUAL)
- SERVQUAL: A framework identifying gaps leading to unsuccessful service delivery in consumer experiences. These gaps include: consumer expectation vs. management perception, management perception vs. quality specification, quality specification vs. delivery, delivery vs. communication, and perceived vs. expected service.
- Five Dimensions of Service Quality: (Specific descriptions not provided to be summarized).
- Service Failure and Recovery: The strategies companies use to manage unhappy customers and protect relationships (compensation, favorable employee behavior, organizational procedures—e.g., policies, procedures, practices).
Principles of Relationship Marketing
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Relationship Marketing: Relies on a history of exchanges and future expectation in business relationships. Focuses on long-term loyalty and collaborative exchange for higher profitability.
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Market vs Collaborative Exchange: Highlights attributes including relationship length (short-term vs. long-term), payment (immediate vs. deferred), communication (low vs. high frequency), and cooperation (no vs. joint).
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Customer Relationship Life Cycle: Acquisition, development, retention, and decline. Relationship intensity involves factors such as psychological (trust, commitment, satisfaction) and behavioral indicators (purchasing & communication behaviors), and economic indicators.
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Types of Loyalty: Emotional (driven by personal values), price (driven by rational economic behavior), incentivized (value of becoming loyal), and monopoly (no purchase choice due to a national monopoly). Relationship Marketing goes beyond loyalty schemes; it's about creating personalized relationships.
Customer Experience
- Customer Experience Dimensions: Sensory, affective, intellectual, behavioral, and relational (social engagement, identity, belonging).
- Experience Quality: Customers' emotional judgment of their total experience.
- Customer Engagement: The contribution made by customers to the company, including direct activities (purchases) and indirect activities (word-of-mouth).
- COBRA: Creating, Contributing, and Consuming online brand activities.
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Description
Test your knowledge on the unique characteristics of services and relationship marketing. This quiz will cover concepts such as intangibility, perishability, inconsistency, and inseparability. Challenge yourself to understand how these factors affect service delivery and customer satisfaction.
