CEM Revision PDF

Topic One: service marketing services are economic activities whose output is not a physical product, and is generally consumed at the time it is produced. The characteristics of services are intelligibility meaning that they can’t be touched inventoried and cannot be felt before the service is per...

Topic One: service marketing services are economic activities whose output is not a physical product, and is generally consumed at the time it is produced. The characteristics of services are intelligibility meaning that they can’t be touched inventoried and cannot be felt before the service is performed. Services are heterogeneous meaning that they may very depending on who provides on different factors and on the customers actions. services are inseparable meaning that they are simultaneously produced and consumed. Services are perishable, they cannot be stored, returned, or used later. Customers’ experience is every single interaction a customer will have with the brand during one’s lifetime. The 7P of marketing mix :price promotion place product people processes and physical evidence Good dominant logic is to make products to sell them, focus on sales/profit Service dominant logic is customer centric, firms serve their customers better and improve their performances/experiences instead of focusing on making profit. The properties of service: Search qualities, they’re easy to evaluate before purchase Experience qualities, they can be evaluated during or after purchase Creedence qualities, difficult to evaluate even after purchase, may require specialist Buyer decision making process One recognition of need Two information search Three evaluation of alternatives Four purchase decision Five post purchase evaluation Topic two: gap model of service quality The customer gap: the difference between customers expectations and perceptions of the service.it is caused by cumulative effects of other gaps. Listening gap: the difference between customers expectations and the firms understanding of those expectations.it is caused by poor market research, lack of feedback/communication. Service design and standard gap: the difference between a customers expectations and a service quality standard.it is caused by the lack of service blueprinting, misaligned standards. Service performance gap the difference between specified service standard and actual service delivery. It is caused by employee under performance, poor training and lack of resources. Communication gap is the difference between promised service and ads/promotions and the actual delivered service. It is caused by over promising in marketing, lack of horizontal communication. Topic three service quality Service quality is measured by assessing customers perception of service. Customer satisfaction is a customers post conception judgement of whether to service provided a pleasurable level of overall usage. It factors into account the product/ service attributes, the mood and emotions, attribution and blame, perception of equity, culture, other customer/family/friends. The dimensions of service quality Reliability, perform service as promised Responsiveness, prompt answers/help Assurance, employees ability to inspire trust Empathy, individualized attention Tangibles, physical appearance of environment. Serv Qual is a tool that measures how effective the company is in each dimensions of service quality 21. service attributes grouped into five dimensions. Topic four service failure and service recovery strategies Service failure is when a service performance falls below a customers expectation and leads to dissatisfaction. Service recovery are action taken by affirm in response to a service failure to improve the situation for the customer service recovery paradox is when customers who experienced service failure receive a good service recovery strategy, become more satisfied than those who haven’t experienced service failure. there are three types of complaints.1st one is seeking address/voice responses, immediate complain to provider, on spot. The second one is negative word of mouth for instance through social media or gripe sites. The third one is third party complaints for instance through consumer protection. Strategies of service recovery One) fix the customer by responding quickly, treating the customer fairly , using appropriate communication and cultivate the relationship. Two) fix the underlying problem by encouraging complaints, by learning from recovery, by learning from lost customer, making service feel safe. 3) service guarantees, promise of quality, formalise compensation. Topic five customer journey and service blueprint Touch points or points of contact/interaction between a business and its customer. They can be brand owned ,partner owned ,customer owned ,or external/social. Moment of truth is when customer interacts with brand, product, service and forms an impression about it. Customer journey is a process/sequence that a customer goes through to access or use an offering of a firm. Pre-purchase: not always controlled by the brand, need recognition, search. Purchase: choice, behaviour, ordering, during. Post purchase: usage, consumption, service inter interactions, after. Customer journey: Awareness, consideration, purchase, retention, advocacy. Service blue printing is a map that portrays customer experience and the service system, so the different people involved in providing the service can understand the full picture.it encompasses brand and customer perspectives, touch points, match choose customer journey to processes, identifies triggers/pain points, follow-ups. Its purpose it is to design moments of truth, transfer knowledge, innovate, recognise roles.