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MKT 300 Chapter 13

Services: The Intagible Product

QuestionAnswer
Service Any intangible offering that involves a deed, performance, or effort that cannot be physically possessed; intangible customer benefits that are produced by people or machines and cannot be separated from the producer.
Customer Service Specifically refers to human or mechanical activities firms undertake to help satisfy their customers' needs and wants.
Intangible A characteristic of a service; it cannot be touched, tasted, or seen like a pure product can.
Inseparable A characteristic of a service: it is produced and consumed at the same time; that is, service and consumption are inseparable.
Heterogeneity As it refers to the differences between the marketing of products and services, the delivery of services and more variable.
Perishable A characteristic of a service: it cannot be stored for use in the future.
Service Gap Results when a service fails to meet the expectations that customers have about how it should be delivered.
Knowledge Gap A type of service gap; reflects the difference between customers' expectations and the firm's perception of those expectations.
The Four gaps in the service model are? Knowledge Gap, Standards Gap, Delivery Gap, & Communication Gap.
Standards Gap A type of service gap; pertains to the difference between the firm's perception of customers' expectations and the service standards it sets.
Delivery Gap A type of service gap; the difference between the firm's service standards and the actual service it provides to customers.
Communication Gap A type of service gap; refers to the difference between the actual service provided to customers and the service that the firm's promotion program promises.
Service Quality Customers' perceptions of how well a service meets or exceeds their expectations.
Voice-Of-Customer Program An ongoing marketing research system that collects customer inputs and integrates them into managerial decisions.
Zone of Tolerance The area between customers' expectations regarding their desired service and the min lvl of acceptable service - that is, the difference between what the customer really wants & what he/she will accept before going somewhere else.
Empowerment In the context of service delivery, means allowing employees to make decisions about how service is provided to customers.
Methods to reduce delivery gaps Empowering Employees, Emotional Support, & Instrumental Support.
Distributive Fairness Pertains to a customer's perception of the benefits he/she received compared with the costs (inconvenience or loss) that resulted from a service failure.
Procedural Fairness Refers to the customer's fairness of the process used to resolve complaints about service.
Created by: towilliamsjr
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