Services Marketing Concepts
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Questions and Answers

What characteristic of services indicates they cannot be stored for later use?

  • Measurability
  • Interactivity
  • Perishability (correct)
  • Variability

    • What does service variability primarily result from?

  • Human involvement in delivery (correct)
  • Technological advancements
  • Consumer demand changes
  • Standardized processes

    • What strategy focuses on building long-term relationships with customers?

  • Relationship Marketing (correct)
  • Transactional Marketing
  • Direct Marketing
  • Spectrum Marketing

    • Which term describes the interaction between a customer and a service provider?

    <p>Service Encounter</p> Signup and view all the answers

    What is the term for the tangible elements that help customers form impressions of a service?

    <p>Physical Evidence</p> Signup and view all the answers

    What framework identifies gaps between customer expectations and perceptions of service quality?

    <p>Gap Model of Service Quality</p> Signup and view all the answers

    What is a key strategy in competitive markets aimed at making a service distinct?

    <p>Service Differentiation</p> Signup and view all the answers

    Which approach involves managing a company's interactions with current and potential customers?

    <p>Customer Relationship Management (CRM)</p> Signup and view all the answers

    What is a key characteristic of services that differentiates them from physical goods?

    <p>Services cannot be touched or tasted.</p> Signup and view all the answers

    Which of the following is NOT a component of the servicescape?

    <p>Customer Feedback</p> Signup and view all the answers

    How can a well-designed servicescape impact customer behavior?

    <p>By reducing customer anxiety.</p> Signup and view all the answers

    Which aspect of services marketing emphasizes customer interaction before, during, and after a service encounter?

    <p>Customer Experience</p> Signup and view all the answers

    What does the term 'perishability' refer to in services marketing?

    <p>Services cannot be stored for later use.</p> Signup and view all the answers

    What role do 'ambient conditions' play in the servicescape?

    <p>They are background characteristics impacting the service environment.</p> Signup and view all the answers

    In which aspect of services does 'inseparability' play a crucial role?

    <p>Production and consumption occurring simultaneously.</p> Signup and view all the answers

    What is a primary focus of services marketing?

    <p>Enhancing customer satisfaction and loyalty.</p> Signup and view all the answers

    What is the primary goal of effective service recovery?

    <p>To convert dissatisfied customers into loyal ones</p> Signup and view all the answers

    Why is empathy important in service recovery?

    <p>It demonstrates understanding and care towards the customer's concerns</p> Signup and view all the answers

    What service recovery strategy involves checking in with the customer after resolving an issue?

    <p>Follow-Up</p> Signup and view all the answers

    How can businesses leverage social media for customer engagement in the Philippines?

    <p>By sharing testimonials and handling complaints promptly</p> Signup and view all the answers

    What motivates Filipino consumers' expectations in customer service?

    <p>Personalized and respectful service</p> Signup and view all the answers

    What is the service recovery paradox?

    <p>Customers may become more loyal after a satisfying recovery following a service failure</p> Signup and view all the answers

    What type of service recovery involves offering discounts or upgrades?

    <p>Compensation</p> Signup and view all the answers

    Which factor is NOT considered when tailoring services to the Philippine market?

    <p>Global Competition</p> Signup and view all the answers

    Which pricing strategy focuses on determining prices based on production costs plus a markup?

    <p>Cost-plus pricing</p> Signup and view all the answers

    Which dimension of service quality refers to the staff's ability to inspire trust?

    <p>Assurance</p> Signup and view all the answers

    What is an example of a tangible element that helps customers evaluate service quality?

    <p>Service uniforms</p> Signup and view all the answers

    Which of the following is NOT one of the extended 3Ps for services?

    <p>Promotion</p> Signup and view all the answers

    How does employee empowerment benefit service delivery?

    <p>Allows employees to make real-time decisions</p> Signup and view all the answers

    Which dimension of service quality reflects the willingness to help customers and provide prompt service?

    <p>Responsiveness</p> Signup and view all the answers

    What role do frontline employees play in service satisfaction?

    <p>Directly impact customer perception of service quality</p> Signup and view all the answers

    Which of the following methods is essential for regular skill enhancement of service employees?

    <p>Training and Development</p> Signup and view all the answers

    What is internal marketing primarily focused on?

    <p>Training and motivating employees to provide excellent service.</p> Signup and view all the answers

    What does service recovery refer to?

    <p>Actions taken to rectify a service failure.</p> Signup and view all the answers

    Which term describes the unique benefits a service provides to distinguish itself from competitors?

    <p>Value Proposition</p> Signup and view all the answers

    What is meant by 'moment of truth' in a service context?

    <p>Any instance a customer interacts with a company.</p> Signup and view all the answers

    What factors are considered in demand management?

    <p>Pricing, scheduling, and promotional strategies.</p> Signup and view all the answers

    Why is customer satisfaction important?

    <p>It often leads to customer loyalty and positive word-of-mouth.</p> Signup and view all the answers

    What is the servicescape?

    <p>The physical environment where service transactions occur.</p> Signup and view all the answers

    Which of the following best describes service innovation?

    <p>Developing new or improved services to meet customer needs.</p> Signup and view all the answers

    Why has cleanliness become especially important for businesses since the COVID-19 pandemic?

    <p>It reassures customers and builds trust.</p> Signup and view all the answers

    What is a key aspect of service marketing?

    <p>Promoting and selling intangible services.</p> Signup and view all the answers

    Which characteristic of services refers to their inability to be owned or physically possessed?

    <p>Intangibility</p> Signup and view all the answers

    What factors are often used to evaluate service quality?

    <p>Reliability, empathy, and responsiveness</p> Signup and view all the answers

    Why do businesses in the Philippines create loyalty programs?

    <p>To offer discounts and rewards to repeat customers.</p> Signup and view all the answers

    What do younger Filipino consumers generally prefer in brands?

    <p>Brands that contribute positively to society.</p> Signup and view all the answers

    In the context of services, what does inseparability mean?

    <p>Production and consumption occur simultaneously.</p> Signup and view all the answers

    How can businesses effectively attract customers who value sustainability?

    <p>By showcasing eco-friendly practices and supporting social causes.</p> Signup and view all the answers

    Study Notes

    Services Marketing Concepts

    • Services Marketing: Focuses on intangible services, unlike physical goods. Key is delivering valuable experiences.

    • Goods vs. Services Differences:

      • Intangibility: Services cannot be touched or stored.
      • Inseparability: Production and consumption are simultaneous.
      • Variability: Quality varies depending on service encounter.
      • Perishability: Services cannot be stored.

    • Importance of Services Marketing: Dominates modern economies (tourism, healthcare, education), emphasizes customer satisfaction and loyalty.

    Service Marketing Mix (7Ps)

    • Traditional 4Ps (for Products):

      • Product: Intangible service offered (healthcare, transportation).
      • Price: Strategies for pricing services (e.g., demand-based).
      • Place: Distribution channels (online services).
      • Promotion: Communication to attract customers (advertising).

    • Extended 3Ps (for Services):

      • People: Employees and customers involved in delivery.
      • Process: Flow of service delivery activities (service blueprinting).
      • Physical Evidence: Tangible elements customers use to evaluate (facility design).

    Designing the Service Setting (Service Environment)

    • Importance of Service Environments: Physical surroundings influencing customer behavior, perceptions, and satisfaction.

    • Components of the Servicescape:

      • Ambient Conditions: Lighting, music, scent, etc.
      • Spatial Layout: Arrangement of equipment, etc.
      • Signs/Symbols/Artifacts: Visual cues communicating the service.

    • Role of Atmospherics: Creating emotional connections; how design reduces anxiety (e.g., waiting rooms).

    Customer Experience and Service Quality

    • Customer Experience: Total interaction with a service provider (before, during, and after).

    • Service Quality Dimensions (SERVQUAL):

      • Reliability: Dependable and accurate performance.
      • Assurance: Employees' knowledge, courtesy, and trustworthiness.
      • Tangibles: Appearance of facilities, equipment, and personnel.
      • Empathy: Caring, personalized attention.
      • Responsiveness: Prompt service, willingness to help.

    Managing Service Employees (The People Factor)

    • Role of Frontline Employees: Direct impact on customer satisfaction and perception of service quality. Crucial for building loyalty.

    Service Failure and Recovery

    • Understanding Service Failure: Breakdown in service delivery causing customer dissatisfaction (delays, miscommunication).

    • Importance of Effective Service Recovery: Well-handled recovery can transform a dissatisfied customer into a loyal one.

    • Types of Service Recovery:

      • Compensation: Offering discounts, refunds, or upgrades.
      • Empathy: Demonstrating understanding and care.
      • Follow-Up: Checking in with the customer after resolving issue.

    Building Customer Loyalty Through Service Quality and Managing Service Personnel

    • Customer Loyalty: Consistent service quality fosters long-term relationships with customers.

    • Loyalty Programs use rewards and exclusive offers to retain customers.

    • Key Drivers of Customer Loyalty:

      • Trust: Reliable and consistent service.
      • Emotional Connection: Personalized, memorable experiences.
      • Engagement: Feedback-driven and customer inclusion in the process.

    • Strategies for Managing Service Personnel:

      • Training/Development: Regular training on service skills.
      • Employee Empowerment: Giving authority to make decisions.
      • Motivation Techniques: Recognition, positive work environment.

    Filipino-Specific Considerations in Services Marketing

    • Adapting to Customer Service Expectations: Filipinop customers value warmth, respect, personalized service, and a "family-like" approach.

    • Leveraging Social Media: Using platforms like Facebook and Instagram for engagement and promotions.

    • Effective Recovery Strategies: Recognizing Filipino cultural forgiveness and demonstrating care; prompt apologies.

    • Building Community Connections: Leveraging the strong community ties in the Philippines.

    • Flexible Payment and Service Options: Offering options tailored to different customer segments.

    • Localized Digital Marketing/SEO: Tailoring strategies to appeal to Filipino customers.

    • OFW Family Considerations: Understanding the needs of overseas Filipino workers.

    • Managing Service Demand: Anticipating demand peaks during holidays and planning accordingly.

    • Service Environment (Servicescape): Key physical environment where service transactions occur; effects customer perceptions.

    • Service Quality: Measuring how service delivered meets/exceeds customer expectations.

    • Service Differentiation: Creating unique features to make a service stand out from competitors.

    • Demand Management: Aligning service capacity with customer demand.

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    Services Marketing Concepts PDF

    Description

    This quiz covers the fundamental concepts of services marketing, focusing on its unique characteristics compared to physical goods. It discusses the importance of services in modern economies and introduces the service marketing mix, including the traditional 4Ps and extended 3Ps. Test your understanding of how to effectively market services and enhance customer satisfaction.

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