Services Marketing Midterm Exam Reviewer

SERVICES MARKETING (MKTG E404) MIDTERM EXAM REVIEWER [BOOK] CHAPTER 1 * Service activities of many types have been essential aspects of the evolution of human culture and civilization. * Service is ―a deed, a performance, an effort‖ (Rathmell, 19...

SERVICES MARKETING (MKTG E404) MIDTERM EXAM REVIEWER [BOOK] CHAPTER 1 * Service activities of many types have been essential aspects of the evolution of human culture and civilization. * Service is ―a deed, a performance, an effort‖ (Rathmell, 1966) *According to Shostack, the proportion of tangibles to intangibles in a product determines whether a marketing offering is a good or service. * Service can be almost human activity. * Some service may have tangible aspects, and some physical hoods may have intangible aspects. * Service have typically been distinguished from physical goods by several general characteristics. * Services are often defined based on their most obvious feature of intangibility. * Intangibility most services cannot be seen, touched, held, or put on a shelf. * Inseparability for most services, the production and consumption of the service performance occur simultaneously. * Inseparability suggests that interaction between the customer and the service provider must occur for the service to happen. * Variability it is hard for a service organization to standardize the quality of its service performance. * Perishability most services cannot be produced and stored before consumption. They exist only at the time of their production. * The perishability characteristics are the major source of many supply and demand problems that services marketers face. * Rental/Access services provide temporary possession or access instead of ownership. CLASSIFICATIONS BASED ON SERVICES FIELDS: Fisk and Tansuhaj (1985) classified services organizations into ten broad categories. Each is listed with specific industry examples.  Health Care Services: Hospitals, clinics, health maintenance organizations, and physicians.  Financial Services: Banks, insurance companies, and brokerages.  Professional Services: Accounting, law firms, real estate, advertising, architectural companies, engineering, construction, and consulting.  Knowledge Services: (Educational) day care, tutoring, grade schools, vocational schools, colleges, universities, and employee training; (Research) management information services, research firms, information services, and libraries.  Travel and Hospitality Services: Hotels, restaurants, airlines, and travel agencies.  Entertainment Services: (Sports) automobile racing, cycling, baseball, basketball, football, hockey, and the Olympics; (Arts) ballet, opera, and theater; (Entertainment) rock concerts, circuses, and monster truck pulls.  Information Services: Radio, television, cable, telephone, satellite, computer networking, and Internet services.  Supply Services: (Channel) retailing, wholesaling, franchising, and agents (see Spotlight 1.3 for an example of how the online retailer Zappos offers shoes and great customer service); (Physical Distribution) shipping and transportation; (Rental and Leasing) costume rentals, automobile rentals, and construction equipment leases; (Utilities) power, gas, water, sewage, and other supply organizations.  Personal and Maintenance Services: (Personal) employment, hairstyling, exercise clinics, morticians, and household services; (Maintenance) automobile repair, plumbing service, and lawn care service.  Governmental, Quasi-Governmental, and Nonprofit Services: (Governmental) national, state, local, utility, and police services; (Quasi-Governmental) social marketing, political marketing, and also postal services because the U.S. Postal Service is a partially independent agency; (Nonprofit Services) religions, charities, museums, and clubs. *Christopher H. Lovelock (1983) proposed five different ways of classifying services such as nature of service act, relationships with customers, degree of customization, degree of demand fluctuation, and method of service delivery. *Lovelock’s first classification focuses on to what or whom the service is directed (a thing or a person) and the nature of the service act (tangible and intangible). LOVELOCK’S CLASSIFICATION People Possessions Tangible Actions Services directed at people's bodies: Services directed at physical possessions: Health care Laundry/dry cleaning Hotels Landscaping/lawn care Airlines Repair and maintenance Beauty salons Freight transportation Fitness centers Warehousing/storage Haircutting Restaurants/bars Funeral services Janitorial services Retail distribution Disposal/recycling Intangible Actions Services directed at people's minds: Services directed at intangible assets: Education Accounting Advertising Banking Arts and entertainment Insurance Broadcasting/cable Legal services Management consulting Programming Information services Research Music concerts Software consulting o A triangular classification of services marketing was first developed by Gronroos (1990) and later elaborated by Kotler (1994) and Brown and Bitner (2006). o The services marketing triangle is based on three key components: organizations, providers, and customers. o Internal marketing is the marketing effort by the organization directed at those who provide services. In a corporation, this effort might include a wide range of employees and midlevel managers. In a nonprofit organization, this effort might include employees, mid- level managers, and volunteers. Prepared by: Ma’am Ayma Manalungsung  SERVICES MARKETING (MKTG E404) MIDTERM EXAM REVIEWER o External marketing is the marketing effort by the organization directed at the customers and includes many services marketing decisions: promotion, creative pricing, service product design and location and availability considerations. o Interactive marketing is the marketing effort by the service providers directed at the organization's customers. It includes all the interactions between any service provider and any customer. o Brown and Bitner (2006) added the last aspect of the triangle, which is the role of promises in services marketing. Internal marketing enables promises. External marketing makes promises. Interactive marketing keeps promises. In short, interactive marketing is where the organization proves its commitment to serving customers. CHAPTER 2  Any service experience can be categorized into four components; the service workers, the service setting, the service customer and the service process.  Services marketing mix adds three new Ps-participants, physical evidence, and process of service assemble — to the four Ps of the traditional marketing mix.  The most common version of the marketing mix, known ad the ―Four Ps‖ of marketing, emphasizes the key roles of product, price, promotion, and place in the development of a marketing strategy.  Services theater framework involved the same theatrical elements as a stage production: actors, audience, setting, frontstage, backstage and a performance.  Another framework for structuring the intricacies of the service experience is the servuction framework offered by Langeard, Bateson, Lovelock, and Eiglier (1981).  The term servuction was coined to designate the service production system (service production = servuction).  According to the servuction framework, the elements of the service experience include the service’s invisible organization and system.  The Services Theater Framework (based on the metaphor of services as theater), involves the same theatrical elements as a stage production: actors, audience, setting, frontstage, backstage, and a performance.  The actors (service workers) are those who work together to create the service for the audience (customers).  The setting (service environment) is where the action or service performance unfolds.  The frontstage actions that service actors perform for the customers usually rely on significant support from the backstage, away from the audience’s inspection, where much of the planning and execution of the service experience occurs. COMPARISON OF DIFFERENT FRAMEWORKS OF THE SERVICE ENCOUNTER Framework Services Marketing Mix Framework Servuction Framework Theatrical Framework Components (Booms and Bitner, 1981) (Langeard et al., 1981) (Grove and Fisk, 1983) Setting Physical Evidence Invisible Area Backstage Visible Area Frontstage Workers Participants Contact Personnel Actors Customers Participants Customer A (focal customers) Audience Customer B (focal customers) Process Process of service assembly Bundle of benefits Performance CHAPTER 3 * Human society in the twenty-first century is in the midst of a revolution comparable in scale and consequence to the industrial revolution of the mid-nineteenth century. * A service organization can pursue a carefully cultivated strategy of improving it’s core technology as a means of improving service quality. * Service organizations are using technology as a tool to supplement their core services. * Service organizations are now heavy users of telecommunications and computer technology. * Service organization now serve the needs of clients around the world with a combination of computers, smart phones, e-mail, and Web sites. * Technology devices - few service organizations could survive today without the heavy use of telephones and computers. * Networking - is the act of establishing a communication link among two or more individuals, organizations, or other entities not in the same physical location. * Empowering the customer - is one of the earliest technological alternatives to the human performance of a service was the self-service machine, such as the vending machine. * Developments in technology have allowed the creation of intelligent agents as a new services tool. * Curating Customer Information - Advances in information technology have allowed organizations to collect large quantities of information about customers and to create and deliver customer services hitherto unimaginable. * Automated Idiocy - The rush to automate service functions often leafs to systems that automatically do stupid things. * Time Sink - New services technology can be a ―time sink‖ that steals precious time from the user. * Law of the Hammer - This law is based on the idea that a small child with a hammer sees every other object as a nail. * Technology Lock - One of the biggest problems in customer interface design occurs because technological design persist long after their functional value is gone. * Las Inch – Many customer interface design problems occur at the point of contact between the customer and the technology. Current customer interfaces are rather primitive and require significant training to operate successfully. CHAPTER 4 * The Service Performance - Viewing services as performances makes sense for many reasons. * Service products can be classified like physical goods into categories, such as convenience, shopping, or specialty services. * Convenience services are perceived to be low risk. Customers want to exert little effort and select the most accessible provider of that service. Examples include a taxi, a shoeshine, grocery stores, drug stores, and of course, convenience stores. * Shopping services are those for which the customer needs to develop a preference or choice and will make comparisons of prices and quality, which requires a search activity. Examples include insurance, air travel, travel agency, and college. * Specialty services are those for which the customer has a preference in brands and in service provider characteristics, indicating an extra willingness to look for a specific service provider. Examples include legal services, museums, and religious services. Prepared by: Ma’am Ayma Manalungsung  SERVICES MARKETING (MKTG E404) MIDTERM EXAM REVIEWER * Using the metaphor of a flower, Lovelock (1994) identified eight types of supplementary service petals that might surround an organization's basic service performance at the flower's center. * Planning a service performance involves both striving to keep up with competition and carefully studying opportunities to distinguish the organization by supplementing its core service. * Service innovations are often easy to copy, neutralizing the competitive advantage. * According to Levitt (1981), the augmented product an organization develops today can easily become tomorrow's expected product from the customer's point of view. * In services marketing terms, the potential product can incorporate any means of attracting customers in the future by supplementing the already augmented service performance. * The Self-Service Economy - It seems that everywhere one looks these days there is more and more evidence that self-service technology is gaining widespread acceptance. * Customizing the Service Performance - Product differentiation in services can come in the form of customization, which requires special consideration. * Scripting the Service Performance - A careful observer is likely to recognize that service performances allow a sequence of events * A Service Script is a chronologically ordered representation of the steps that make up the service performance from the customer’s point of view. * A service script may also be a normative tool that provides an account of what should happen during a service’s enactment from the customer’s point of view. * A Service Blueprint is a graphic representation of the essential components of the service performance, both front stage and backstage. * Complexity – refers to the number of steps involved in the service performance and subsequently depicted in the service blueprint. * Divergence – refers to the amount of flexibility or variability involved it any particular step of the service performance. * The greater the Complexity of the service, the greater the number of steps in its service blueprint. * The greater the ―Divergence‖ of the service, the greater the amount of flexibility or variability involved in any particular step in the service blueprint. * The Internet revolutionized the service industry with the introduction of new services, online versions if existing services, and Internet-based services to organizations whose core product is not a service. CHAPTER 5 * A Service Setting sometimes called a servicescape, includes all aspects of the physical environment in which the service provider and customer interact. * The Duration of the Service Setting - A service organization’s physical setting becomes more significant when the customer spends substantial time in the environment, as during hospitalization, vacation stays at hotels, or airline flights. * Service Setting as in Operational Tool - The service setting design also plays an important role in determining service efficiency. * Service Setting as a Service Identifier - The setting design also increases in importance when it helps differentiate a service. * Service Setting as in Orientation Tool - The design of service settings can facilitate or hinder the customer’s understanding of the service process. * An Approach Environment is a setting in which the customer feels comfortable and wants to spend time. * An Avoidance Environment is a setting that the customer finds undesirable and uninviting. * Managing Tangible Evidence - A service’s physical environment can be it’s most important tangible aspect. * Experimenting with the Service Setting - Experimenting with the service setting allows managers to try out new setting features on a limited basis before embracing them. * An E-servicescape Setting is any Website on the Internet. E-servicescape setting are subject to the same concepts that apply to managing the tangible evidence of a conventional service environment. * A service organization’s physical setting is the most controllable of all the elements contributing to the customer’s experience. CHAPTER 6 * Boundary Spanners are the frontstage employees who link an organization with it’s customers; they represent the service in the customer’s eyes. * Technical Skills are the proficiency with which services employees perform the tasks associated with their position. * Social Skills are the manner in which service employees interact with customers and fellow workers. * Service organizations desire are a set of soft skills from their workers that lead to strong interaction with customers and relationship building. * Empowerment is the management practice of sharing information, rewards, knowledge, and power with frontline service employees so that they can better respond to customers’ needs and expectation. * Discretionary Effort is the difference between the maximum effort one can bring to a task and the minimum effort needed simply to get by. * Internal Marketing is the policy of treating employees as internal customers of the service organization, responding to employees’ needs or wants, and promoting the organization and its policies to the employee. [ONLINE REFERENCE] LESSON 1  Services are activities, benefits or satisfaction which are offered for sale or provided in connection with sale of goods.- The American Marketing Association  Services are those separately identifiable essentially intangible activities, which provide want satisfaction when marketed to consumers and/or industrial uses and which are not necessarily tied to the sale of a product or another service. –Stanton  The Physical Product - various products marketed by a firm involve the physical transfer of ownership of those products. They are tangible and their quality is standardised. For Example, physical products include T.V., Radio, Refrigerators, Computers, Hair oil, Vacuum Cleaner, Washing Machine, etc.  Service Product - A service is an activity or benefit that one party can offer to another which is essentially intangible in nature. For example, people visiting exhibitions, trade fairs are allowed to inspect the consumer durables without being Prepared by: Ma’am Ayma Manalungsung  SERVICES MARKETING (MKTG E404) MIDTERM EXAM REVIEWER approached by sales representatives. Salesmen are trained in making proper approach to the customer visiting their showrooms.  Service Environment - The potential customers form an impression about the service on the basis of service environment. The service environment represents the physical back drop that surrounds the service. For example, providing hygienic food is the core service in a hotel or restaurant. Customers expect the restaurants to be maintained clean, offer flexible dining hours prompt service, soft music, décor, exotic menu etc.  Service Delivery - is one of the important components of service. Service delivery is of great importance to the customer’s overall perception about the quality of service. The service provider should give due consideration to the way service is rendered to customers. Services are created as they are consumed.  Services Design - A service involves creation and delivery of core benefits in order to satisfy an identified need of the customer. As a process, it refers as to how a service is provided or delivered to a customer. In a competitive market, the importance of the actual process in service delivery has been recognised.  A service blueprint is a flow chart of the service process. It conveys the service concept by showing all the elements or activities and their sequencing and interaction.  Blueprinting was developed by Shostak in 1987.  Technology & Service Productivity - Service organisations can improve their productivity by introducing systems and technology in their operations. Under the systems approach to services marketing technology, engineering and management sciences are implemented into service industries.  Hard technologies substitute machinery, tools and other engineering devices for labour intensive performance of service work. The following examples can be offered for the application of hard technologies in the service sector. Example: Automatic car washes, airport x-ray equipment, automatic car vending equipment, audio computers, the consumer credit card and bank balance checking machine.  Soft technology means substituting pre-planned systems for individual service operations. Though the systems involve some technology, the basic characteristic is the system itself. Example: Fast food restaurants such as MC Donald, Wendy, Pizza hut, Kentucky Fried Chicken follow rationale division of labour.  Hybrid technologies combine hardware with carefully engineered systems to bring greater efficiency, order and speed to the service process.  The service generating organisations building service aspirations in the process of generating demand for the services.  Service aspirations of organisation engaged in generating services focus on offering quality services.  Quality is generally conceptualised as an attitude towards service.  The traditional marketing mix is considered in the context of services. Since a different marketing mix is needed for services some have expanded the traditional four Ps.  The marketing mix concept is a well established tool used as a structure by marketers. It consists of the various elements of a marketing programme which need to be considered in order to successfully implement the marketing strategy and positioning in the company’s market. It is important internal elements or ingredients that make up an organisation’s marketing programme.– Adrian Payne  According to Adrian Payne, a product is an overall concept of objects or processes which provide some values to customers. Goods and services are subcategories of product.  The core product represents the basic services of a product. This product is at its basic level. For example, food served in a restaurant a bed in a hotel room for the night safety of deposits and loanable funds in a bank.  The expected product consists of the core product together with the minimal purchase conditions which need to be met. For example in a restaurant in addition to basic food served, aspects such as cleanliness, timely service polite and courteous service of bearer, availability of menu and background music are expected.  Augmented product refers to offerings (product benefit or services in addition to hat customers expect). This concept enables a product to be differentiated from another. For example, though IBM has not got technologically advanced core product they are praised for excellent customer service. This adds value to their core product in terms of reliability and responsiveness.  Potential product refers to doing everything potentially feasible to hold and attract the customers.  Price plays a significant role in the marketing mix by attracting revenue to the marketer. Pricing decisions are important for determining the value of the service as perceived by the customer and building of an image for the service. Price serves as a basis for perception of quality.  Since services are intangible in nature, pricing of services is highly important. The price is indicative of the quality of service that customers receive.  Pricing gives customers information about the immediacy of delivery and the importance of availability. Premium pricing is followed during maximum demand period and discounted pricing when the demand for the service is low.  Pricing allows homogeneous services to be differentiated and facilitates the adoption of a premium pricing strategy.  Promotion is an important part of the marketing mix for many marketers. The promotion element of the service marketing mix communicates the positioning of the service to customers.  The promotion mix includes six elements, namely (a) Advertising (b) Personal Selling (c) Sales Promotion (d) Public Relations (e) Word of mouth and (f) Direct mail.  Advertising is the impersonal communication used by service firms. Advertising in service marketing adds to the customer’s knowledge of the service, persuades the customer to buy and differentiates the service from other service offerings.  Personal Selling has assumed much importance in service firms owing to the following reasons. (1) There is a personal interaction between the service provider and the customer. (2) The service is provided by a person not a machine. (3) People are becoming part of the service product.  Publicity is a free news appearing in mass media about a company and its products.  Place mix of services marketing involves the location and channels which are the two key decision areas. The service provider should decide as to how to deliver the service to the customer and where this should take place.  In all the organisations, people play a decisive role. Employees working in the service organisations are the contact people with the customers. Employees working in a bank, hotel, hair-cutting saloon etc., are all frontline people. They are in direct contact with the customers who visit their services. The role of these frontline people decides the success of the service organisation. Prepared by: Ma’am Ayma Manalungsung  SERVICES MARKETING (MKTG E404) MIDTERM EXAM REVIEWER  A service organisation can be only as good as its people. The strength and success of the service organisation lies in the quality of the service personnel working in the organisation.  Physical evidence is another important variable to be considered in the context of services marketing. Since a service is intangible, it is important for the client to search for evidences which enables him to evaluate the service. Physical evidences are those tangible clues which customers may receive during the process of receiving the service.  The processes by which services are created and delivered to the customers are an important element of marketing mix. Customers perceive the delivery system as a part of the service itself. The processes involve the procedures, tasks, schedules, mechanisms, activities and routines by which a service is delivered to the customer.  Every service firm has a maximum capacity to serve customers. Maximum capacity represents the absolute limit of service availability.  Both optimum and maximum capacity may not be the same. At optimum capacity level, resources are fully employed but not over-used. As a result, customers will receive quality service on time. But when demand exceeds optimum capacity, the staff and facilities are stretched, resulting in poor service.  Optimum capacity refers to the efficient use of the capacity from the point of view of both the customers and the company. When demand and supply are balanced at the level of optimum capacity, staff and facilities are regarded to be occupied at an ideal level. No employee is over- stretched and facilities are maintained well. As a result, customers stand to benefit.  Excess capacity means the demand is below the optimum capacity. Staff and facilities will be under- utilised. Under- utilisation of facilities like labour and equipment results in loss of profit to the firm. However, customers may prefer such a situation as they can avail full facilities at will.  On the other hand, customers may be disappointed by low demand too in the long run. They may even worry that they have chosen an inferior service provider.  The strategic approach to matching supply and demand focuses on adjusting capacity. So, the service firm should build into its capacity some degree of flexibility. The extent of flexibility depends upon the type of service offered, cost, labour availability and other factors.  This strategy involves shifting demand to match capacity when demand exceeds capacity. Then, the organisation tries to shift customers to periods of slow demand.  Sometimes, it may not be possible for the service organisations to manage capacity to match demand or vice versa.  Treating with equal importance the needs of the internal market (the employees) and the external market (customers) through proactive programmes and planning to bring about organisational objective by delivering employee and customer satisfaction. -Helen Woodruffe  Internal marketing motivates the personnel to work better and satisfy customers.  Internal marketing builds a good communication network which provides information to all employees thereby supporting the service environment. Internal marketing enables the service organisation to gain additional market share.  Internal marketing helps to develop committed personnel who can provide best possible service to customers. Internal marketing equips people with technical skill and knowledge required for their effective functioning.  External marketing is directed at those individuals and groups that buy goods and services from an organization.  The quality of service (QOS) is crucial both to the customer and to the service firm. Service firms maintain competitive edge by rendering quality service.  The concept of quality seems to refer to several diverse areas, namely, quality of the output, quality of the process, quality of the delivery system and quality as a general philosophy of the organization.  There is always bound to be a gap between the QOS which is expected and the QOS that is rendered. Customer service is based on perceptions. While one customer appreciates, the other may narrate it as harrowing experience.  Parasuram and Berry have developed a service quality model to indicate consumer quality perceptions. Viewing services in a structured, integrated way is called the gap model of QOS.  Provider Gap 1: Not knowing what customers expect  Provider gap 2: Not selecting the right service quality designs and standards  Provider gap 3: Not delivering to service standards  Provider gap 4: When promises do not match performance  The financial services such as banking and insurance are an inevitable part of an economy. This is the area which really needs to be strengthened.  Financial services like banking and insurance require a focus on improving efficiency and performance through operations and costs.  The financial system has improved in terms of number of financial instruments and the number of active participants in the market. [ONLINE REFERENCE] LESSON 2  Service is an act or performance offered by one party to another that essentially intangible and does not normally result in ownership of anything. Its product may or may not be tied the physical product.  The service sector, also known as the tertiary sector, is the third tier in the three-sector economy. Instead of product production, this sector produces services maintenance and repairs, training, or consulting. Examples of service sector jobs include housekeeping, tours, nursing, and teaching.  A service is not a physical product that you can touch or see. A service can be experienced by the buyer or the receiver. Also, you can not judge the quality of the service before consumption.  There can be no perfect standardization of services. Even if the service provider remains the same, the quality of the service may differ from time to time.  Inseparability - the service and the service provider cannot be separated. Unlike with goods/products the manufacturing and the consumption of services cannot be separated by storage.  Storage - The production and consumption of services are not inseparable because storage of services is not possible. Being an intangible transaction there can never be an inventory of services. Prepared by: Ma’am Ayma Manalungsung  SERVICES MARKETING (MKTG E404) MIDTERM EXAM REVIEWER  A scope of services sets out precisely what services a consultant will be performing on a project. Scopes of services may also be prepared for contractors where they are carrying out design work, or for consultants appointed by contractors on design and build projects.  A market opportunity assessment is the process of synthesizing market research and client data to identify opportunities for growth in a specific market or business area and formulate an actionable strategy to realize this growth.  A marketing mix includes multiple areas of focus as part of a comprehensive marketing plan. The term often refers to a common classification that began as the four Ps: product, price, placement, and promotion.  The service marketing environment refers to all internal and external factors, which directly or indirectly influence the organization’s decisions related to marketing activities. Internal factors are within the control of an organization; whereas, external factors do not fall within its control.  Market segmentation is the process of dividing an entire market up into different customer segments.  The STP Marketing Model can help you to analyze your product offering and the way you communicate its benefits and value to specific groups. STP stands for:  Segment your market.  Target your best customers.  Position your offering.  Companies that conduct customer service evaluations are looking for honest feedback about the levels of service their employees provide to consumers.  Evaluations – either Web-based, snail mail, focus groups, by phone or in person – help a business see how the company operates from different perspectives.  Culture has a huge effect on consumer behaviours. It is what determines why certain products sell well amongst certain ages, nationalities and businesses but not in others. It's what actually moulds target audiences. At a global scale, what sells well in the Western world, may not in the Middle East.  Customer expectations are what customers predict will happen if they use a product or service. Before they decide to make a purchase, customers gather and interpret information about the product, which influences how they view the product and its quality.  Service quality is a measure of how an organization delivers its services compared to the expectations of its customers.  A service encounter is defined as a moment when a customer interacts with a service or product for the first time. It is the customer's actual interaction with a service company. It is identified as a key component of the current agenda for service marketers.  Relationship Marketing is a strategy of Customer Relationship Management (CRM) that emphasizes customer retention, satisfaction, and lifetime customer value. Its purpose is to market to current customers versus new customer acquisition through sales and advertising.  Customer lifetime value (CLV) is a measure of the average customer’s revenue generated over their entire relationship with a company. Comparing CLV to customer acquisition cost is a quick method of estimating a customer’s profitability and the business’s potential for long-term growth.  Customer profitability (CP) is the profit the firm makes from serving a customer or customer group over a specified period of time, specifically the difference between the revenues earned from and the costs associated with the customer relationship in a specified period.  Service recovery is a company's resolution of a problem from a dissatisfied customer, converting them into a loyal customer. It is the action a service provider takes in response to service failure.  A service failure, simply defined, is service performance that fails to meet a customer’s expectations. Typically, when a service failure occurs, a customer will expect to be compensated for the inconvenience in the form of any combination of refunds, credits, discounts, or apologies.  Service lifecycle is an approach to IT Service Management that places an emphasis on how important coordination and control is, across the various functions, processes, and systems that are necessary to manage the complete lifecycle of IT services.  Service development is the end-to-end process of developing and launching a new service to be sold to customers. This typically includes market research, service strategy, customer experience, marketing, operations and launch of a new service.  A service blueprint is a diagram that visualizes the relationships between different service components — people, props (physical or digital evidence), and processes — that are directly tied to touch points in a specific customer journey. Think of service blueprints as a part two to customer journey maps.  A service blueprint gives a complete picture of how the service and related experience is delivered, end to end, front to back and across channels. It is a powerful tool that simultaneously provides a high-level view of the user experience and a detailed view of what is going on below the surface.  Service quality measurement is the significant managerial tool to understand consumers’ needs and wants by analyzing the experience of consumers in the service provided. It can help firms to find their weaknesses and advantages to make a better service for consumers.  SERVQUAL is a multi-dimensional research instrument designed to capture consumer expectations and perceptions of a service along five dimensions that are believed to represent service quality.  Service Quality Function Development (QFD) is a systematic method to help identify customers’ needs for designing a product (or service) in a way that it considers the customers’ needs first time.  The QFD approach uses a matrix format that looks like a house and, hence, it is also known as the House of Quality (HoQ).  Physical evidence refers to everything your customers see when interacting with your business. This includes: the physical environment where you provide the product or service. The layout or interior design. Your packaging.  Approach deal with general philosophies of teaching. Methods deal with more practical nuts and bolts.  Strategies deal with specific actions.  Positioning is defined as the process of establishing and maintaining a distinctive place in the market for an organisation and/or its products/services offerings.  Service channels aid companies in carrying out business transactions. The term supply chain is used to describe the long channel stretching from acquiring raw materials to delivering finished products to customers. The supply chain channel includes elements of other marketing channels. Prepared by: Ma’am Ayma Manalungsung  SERVICES MARKETING (MKTG E404) MIDTERM EXAM REVIEWER  The Pricing Methods are the ways in which the price of goods and services can be calculated by considering all the factors such as the product/service, competition, target audience, product's life cycle, firm's vision of expansion, etc. influencing the pricing strategy as a whole.  A service marketing triangle is a marketing framework that includes three key types of marketing that help your audience understand what makes your business unique and useful for their needs. These are internal marketing, external marketing and interactive marketing.  Integrated marketing communication refers to integrating all the methods of brand promotion to promote a particular product or service among target customers.  In integrated marketing communication, all aspects of marketing communication work together for increased sales and maximum cost effectiveness.  Culture- a shared purpose where everyone is focused on creating value for others inside and outside the organization. Shorthand definition of service culture is where employees are obsessed with customer service.  Marketing Communication can be defined as the methodologies and tactics adopted by the companies to convey the messages in a unique and creative manner to their existing and prospective customers about their offerings of products and services.  The service principal is the originator and the service deliverer is the intermediary. The service principal is the entity which creates the service concept.  Electronic Channel means any telecommunication or electronic transmission method which may be used in connection with a Money Market Deposit or service, including any computer, email, facsimile, internet, network, etc.  A franchise (or franchising) is a method of distributing products or services involving a franchisor, who establishes the brand’s trademark or trade name and a business system, and a franchisee, who pays a royalty and often an initial fee for the right to do business under the franchisor’s name and system.  Demand management is an attempt to shift demand, while capacity management is a response to demand. This is a large area of study, encompassing a number of topics within operations and marketing.  Yield management systems attempt to use historical data and specialized algorithms to determine the optimal price to sell the inventory. These systems can work in real- time and change prices based on demand.  Strategic planning in healthcare organizations involves creating objectives and setting goals for where the organization sees itself in the long-term.  A guestologist seeks to understand and plan for the expectations of an organization’s targeted customers before they ever enter the service setting, so that everything is ready for each guest to have a successful and enjoyable experience.  A tourism marketing strategy is a structured document that outlines your current position in the marketplace, what you hope to achieve going forward, and how you’re going to make that happen.  Logistics refers to the overall process of managing how resources are acquired, stored, and transported to their final destination. Logistics management involves identifying prospective distributors and suppliers and determining their effectiveness and accessibility.  An Educational Consultant (EC) is a consultant who helps parents/students and organizations with educational planning. An EC offers similar services to school counselors, but is normally self-employed or employed by consulting firms, while school counselors are employed by schools.  Entertainment service management is the system for coordinating field service operations. It includes scheduling work orders, dispatching service technicians, tracking labor hours and job statuses and invoicing the completed job.  Public utilities are services provided by the government or state, such as the supply of electricity and gas, or the train network. Water supplies and other public utilities were badly affected.  Integrated services or IntServ is an architecture that specifies the elements to guarantee quality of service (QoS) on networks. IntServ can for example be used to allow video and sound to reach the receiver without interruption.  Marketing communications strategy is the strategy used by a company or individual to reach their target market through various types of communication. It includes your message the medium and the target. Prepared by: Ma’am Ayma Manalungsung SERVICES MARKETING (MKTG E404) MIDTERM EXAM REVIEWER Prepared by: Ma’am Ayma Manalungsung