Services Marketing Overview

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Questions and Answers

What is a reason ski areas offer less expensive tickets at night?

To appeal to more affluent customers

To manage inventory effectively

To stimulate demand during off-peak times (correct)

To increase the overall ticket sales

What is the Knowledge Gap primarily concerned with?

Evaluating service quality

Knowing what customers want (correct)

Understanding marketing research methods

Setting service standards

Which factor is NOT mentioned as influencing customer expectations?

Knowledge

Experience

Type of service

Pricing strategy (correct)

What is the Zone of Tolerance related to in service quality assessment?

The gap between service expectations and actual performance Signup and view all the answers

How can service providers achieve their service goals effectively?

By committing to service quality and training Signup and view all the answers

What separates Lou’s Local Diner from its primary competitor based on performance?

Higher ratings on service quality dimensions Signup and view all the answers

What is the primary focus when managing customer expectations?

Promise only what can be delivered Signup and view all the answers

Which of the following practices is essential for a successful service recovery?

Listening to the customer Signup and view all the answers

What contributes to distributive fairness in service recovery?

Perceived fairness of the solution provided Signup and view all the answers

Why is it important to resolve service failures quickly?

To avoid negative customer emotions Signup and view all the answers

What is a common emotional response customers have toward service failures?

Anger and frustration Signup and view all the answers

Which approach can help in providing a fair solution during service recovery?

Ensuring procedures are perceived fair by customers Signup and view all the answers

What is a potential benefit of giving a free dessert after a service failure in a restaurant?

It recovers goodwill with the customer Signup and view all the answers

What aspect of service recovery can lead to increased customer satisfaction?

Quick resolution of issues Signup and view all the answers

What is a key characteristic of services compared to products?

Services are intangible and cannot be experienced physically. Signup and view all the answers

Why are developed economies increasingly service-oriented?

Household maintenance became more specialized. Signup and view all the answers

What factor is essential in conveying the value of services to customers?

The atmosphere and cues that aid in customer perception. Signup and view all the answers

Which of the following is a reason why high value is placed on services in developed economies?

Convenience and leisure are becoming increasingly valuable to consumers. Signup and view all the answers

What role do images play in service marketing?

They help convey benefits associated with the service. Signup and view all the answers

What is the primary concern when marketing services?

Addressing customer perceptions and experiences related to intangibility. Signup and view all the answers

What is one key difference between marketing services and marketing products?

Services cannot be stored for future use. Signup and view all the answers

Which gap in the Gaps model focuses on the difference between consumer expectations and management perceptions of those expectations?

Knowledge Gap Signup and view all the answers

What strategy can firms implement to help employees provide better service?

Provide consistent feedback and training Signup and view all the answers

Which issue reflects the inconsistency characteristic of services?

Each service transaction may vary in quality. Signup and view all the answers

What is a common service recovery strategy for handling customer complaints?

Offering discounts for future purchases Signup and view all the answers

What is the effect of intangibility on service marketing?

It requires the use of physical evidence to support the service. Signup and view all the answers

Which statement best describes inseparability in service delivery?

Service provision and consumption occur simultaneously. Signup and view all the answers

How does the Gaps model help businesses?

By identifying and addressing discrepancies between customer expectations and actual service. Signup and view all the answers

Which factor does NOT contribute to the inventory challenges faced by service firms?

Services are always provided on-demand. Signup and view all the answers

How can a service-based business like Cowbell Brewing Co contribute to its community?

By revitalizing the community through unique offerings. Signup and view all the answers

Study Notes

The Service-Product Continuum

Services are intangible, inseparable, inconsistent, and perishable.
Most products and services lie somewhere in the middle of a continuum.

Economic Importance of Service

Developed economies are increasingly service-oriented economies.
In developed economies, high value is placed on convenience and leisure.
Production was cheaper in other countries.

Services Marketing Differs From Product Marketing

Intangibility: Services are intangible, which means they cannot be touched, tasted or seen.
- Requires using cues to aid customers.
- Atmosphere is important to convey value.
- Images are used to convey the benefit of value.
Inseparability: Production and consumption of services are simultaneous.
- Little opportunity to test a service before use.
- Lower risk by offering guarantees or warranties.
Inconsistency: Services vary depending on the provider.
- Training and standardization can reduce inconsistency.
- Customized services are designed to meet specific needs.
- Bundled packages can be used to reduce inconsistency.
- Replace people with machines.
- Self-service technology can help standardize services.
Perishability: Services cannot be stored or inventoried.
- Offers such as discounted tickets are used to increase demand and reduce perishable goods.
- Service providers face challenges in managing fluctuations in demand.

The Gaps Model

Marketing research is used to understand customers.
The knowledge gap is the difference between customer expectations and the company's perception of those expectations.
Understanding customer expectations is based on knowledge and experience.
Expectations vary according to the type of service and the situation.
Evaluating service quality involves assessing customer perceptions versus the expected level of service.
The standards gap occurs when a company does not set up the correct systems to deliver the promised service.
The communication gap arises when the management does not properly communicate the service provided.
Service recovery strategies can be used to resolve problems.

Service Recovery Strategies

Service recovery involves listening to the customer, finding a fair solution, and resolving problems quickly.
When customers are dissatisfied, they want to be heard and feel like they are being treated fairly.
It is important to resolve problems quickly to minimize customer irritation.

Ways to Reduce Variability

Internet-enabled kiosks can provide customers with self-service options, reducing variability.
Self-check-out machines also reduce variability and save labour costs.

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Description

Explore the crucial aspects of services marketing, including the unique characteristics that distinguish it from product marketing. Understand the service-product continuum and the economic significance of services in developed economies. This quiz evaluates your knowledge on intangibility, inseparability, and inconsistency in service delivery.