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 (D)</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 (B)</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 (C)</p> Signup and view all the answers

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

<p>Service Differentiation (A)</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) (C)</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. (A)</p> Signup and view all the answers

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

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

How can a well-designed servicescape impact customer behavior?

<p>By reducing customer anxiety. (D)</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 (C)</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. (A)</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. (C)</p> Signup and view all the answers

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

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

What is a primary focus of services marketing?

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

What is the primary goal of effective service recovery?

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

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

<p>Follow-Up (B)</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 (D)</p> Signup and view all the answers

What motivates Filipino consumers' expectations in customer service?

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

What type of service recovery involves offering discounts or upgrades?

<p>Compensation (B)</p> Signup and view all the answers

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

<p>Global Competition (B)</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 (D)</p> Signup and view all the answers

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

<p>Assurance (A)</p> Signup and view all the answers

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

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

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

<p>Promotion (C)</p> Signup and view all the answers

How does employee empowerment benefit service delivery?

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

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

<p>Responsiveness (B)</p> Signup and view all the answers

What role do frontline employees play in service satisfaction?

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

What is internal marketing primarily focused on?

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

What does service recovery refer to?

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

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

<p>Value Proposition (A)</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. (B)</p> Signup and view all the answers

What factors are considered in demand management?

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

Why is customer satisfaction important?

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

What is the servicescape?

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

What is a key aspect of service marketing?

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

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

<p>Intangibility (C)</p> Signup and view all the answers

What factors are often used to evaluate service quality?

<p>Reliability, empathy, and responsiveness (B)</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. (C)</p> Signup and view all the answers

What do younger Filipino consumers generally prefer in brands?

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

In the context of services, what does inseparability mean?

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

Flashcards

Services Marketing Definition

Marketing of intangible services, different from selling physical goods. The focus is on delivering valuable experiences.

Servicescape

The physical environment where service encounters happen.

Impact of Servicescape

Physical environment affects customer perception, behavior, and satisfaction.

Ambient Conditions

Background aspects like lighting, music, scent, and temperature in a service setting.

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Spatial Layout

Arrangement of furniture, equipment, and spaces to efficiently deliver the service.

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Signs, Symbols, and Artifacts

Visual cues conveying the service brand and purpose.

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Customer Experience

The sum of all customer interactions with a service provider.

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Service Touchpoints

All points where a customer interacts with a service (before, during, or after).

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Service Quality Dimensions

Key aspects that determine how well a service meets customer expectations, measured by SERVQUAL.

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Service Blueprinting

A visual tool that maps out the steps in a service process, highlighting touchpoints and potential service problems.

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Employee Empowerment

Giving employees the authority to make decisions, handle issues, and solve problems on the spot, without needing upper management approval.

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Service-Profit Chain

A link between how happy employees are and how satisfied customers are.

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7Ps of Services Marketing

The extended marketing mix for services, including the classic 4Ps (Product, Price, Place, Promotion) plus People, Process and Physical Evidence.

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Tangible Elements in Services

Physical items that help customers experience the service (e.g., facilities, uniforms).

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Frontline Staff Impact

Directly influence customer satisfaction and overall perception of service quality.

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Service Delivery Process

The sequence of actions that create and provide the service.

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Service Failure

A breakdown in service delivery, leading to customer dissatisfaction.

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Service Recovery

Actions taken to fix a service failure and regain customer satisfaction, often turning a dissatisfied customer into a loyal one.

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Compensation (Service Recovery)

Offering discounts, refunds, or upgrades to apologize for a service failure.

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Empathy (Service Recovery)

Demonstrating understanding and care for the customer's concerns during a service failure.

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Follow-Up (Service Recovery)

Checking in with the customer after resolving a service issue to ensure satisfaction.

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Service Recovery Paradox

Customers who experience a failure and receive satisfying recovery can be more loyal than those who never had an issue.

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Filipino Customer Service Expectations

Filipino customers value warmth, respect, and personalized service.

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Social Media Engagement (Services)

Using social media platforms to engage with customers, handle complaints, and promote services.

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Service Marketing

Promoting and selling intangible services, not physical goods, focusing on building customer relationships.

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Cleanliness & Safety

Crucial factors for customer trust, especially in industries like food and healthcare.

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Sustainable Practices

Eco-friendly actions that attract environmentally conscious customers.

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Loyalty Programs

Rewards systems for repeat customers, offering discounts and points to encourage continued business.

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Service Quality

How well a service meets or exceeds customer expectations, measured by factors like reliability and responsiveness.

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Intangibility

Services cannot be seen, touched, or owned, making pre-purchase evaluation challenging.

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Inseparability

Service production and consumption happen simultaneously, often with direct customer interaction.

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Filipino Consumer Values

Filipino consumers, particularly younger generations, value social responsibility and sustainability.

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Perishability of Services

Services cannot be stored for later use; they are consumed at the time of delivery.

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Service Variability

Services differ each time they are delivered; human involvement introduces inconsistency in quality.

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Service Encounter

Customer interaction with service provider; a crucial moment affecting service perception.

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Brand Loyalty

Customer preference for a brand, resulting from positive experiences and satisfaction.

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Relationship Marketing

Building long-term relationships with customers, fostering loyalty, and satisfaction

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Customer Experience

Overall feelings and perceptions customers have about their interactions with a company.

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Service Blueprinting

Detailed mapping of a service process, visual representation of service experience to find areas for improvement.

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Service Differentiation

Creating unique service features to stand out among competitors in a market.

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Internal Marketing

Training and motivating employees to provide excellent service, leading to higher service quality.

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Service Failure

When a service doesn't meet customer expectations, causing dissatisfaction.

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Service Recovery

Actions taken to fix a service failure and regain customer satisfaction.

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Customer Satisfaction

How well a service meets or exceeds customer expectations, often leading to loyalty.

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Moment of Truth

Any customer interaction with a company, forming an impression about service quality.

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Value Proposition

The unique benefits a service offers, distinguishing it from competitors.

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Customer Retention

Keeping existing customers engaged and satisfied to encourage repeat business.

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Demand Management

Techniques to align service capacity with customer demand, preventing over- or under-utilization.

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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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