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RIT POM CH 12

TermDefinition
Service the result of applying human or mechanical efforts to people or objects
Service vs Products Services are intangible, inseparable, heterogeneous, and perishable.
Intangibility No physical object makes it hard to communicate benefits. (Doctors visit)
Heterogeneity Services depend on their employees for quality, which makes consistency difficult to achieve.
Perishability Services cannot be saved, and it is challenging to synchronize supply and demand. (Yield management)
Inseparable Production and consumption are simultaneous, meaning the consumer takes part in production. (Haircut...cannot produce it centrally!)
Tangibles the physical evidence of a service, including the physical facilities, tools, and equipment used to provide the service.
Intangibles describe services where there isn't a tangible product that the customer can purchase, that can be seen, tasted or touched.
Search Quality a characteristic that can be easily assessed before purchase
Experience Quality a characteristic that can be assessed only after use
Credence Quality a characteristic that consumers may have difficulty assessing even after purchase because they do not have the necessary knowledge or experience.
Gap Model a model identifying five gaps that can cause problems in service delivery and influence customer evaluations of service quality
Core Service the most basic benefit the consumer is buying
Supplementary Services a group of services that support or enhance the core service
Nonprofit organization treating employees as customers and developing systems and benefits that satisfy their needs
Importance of service sector A much bigger part of the US economy as manufacturing jobs went overseas
Gap 1 The Gap between what customers want and what the manufacturer thinks they want
Gap 2 Gap between what management thinks the customers want and the quality specs the management develops to provide the service.
Gap 3 Gap between service quality spec and the actually service provided
Gap 4 Gap between what the company provides and what the customers are told they provide
Gap 5 Gap between the service customers receive and what they want.
Created by: thecrew
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