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Stack #4528828
Service Management
| Term | Definition |
|---|---|
| Brand Architecture | The structure given to the brands which are owned by one organization or business. family tree of brands. |
| Branded House Architecture | Branded Architecture: A firm employing an umbrella corporate or family branding for all its products. (Little to no perceived differentiation/perceived as one brand). |
| House of Brands Architecture | Branded Architecture: Collection of individual brands with different names (high perceived differentiation / consumers are illussioned to see different brands). |
| House of Brands | Branded Architecture: contains independent, disconnected brands wherein a company owns these differing brands under the same category. |
| Advantages > Targets a group of customers with distinct product offering > Easy to make global > Minimizes risk because of diversification Disadvantages > Hard to manage due to complexity | House of Brands Advantages & Disadvantages |
| Hybrid Brand Architecture | Branded Architecture: a blend of Branded House and House of Brands |
| [DSC] Delivery Processes, Supplementary, & Core Product | Components of Service Products |
| Delivery Processes | A Component of Service Product: Used to deliver both the core product and each of the supplementary services |
| Supplementary Services | A Component of Service Product: augments the core product, facilitating its use and enhancing its value and appeal |
| Core Product | A Component of Service Product: central component that supplies the principal, problem-solving benefits customers seek |
| The Flower of Service | a marketing model developed by Christopher Lovelock that uses a flower as a metaphor to illustrate how supplementary services surround a core product, adding value and differentiating it in the marke |
| Facilitating [PIBO] | The part of the flower of a service where: either needed for service delivery, or help in the use of the core product |
| Enhancing [CHES] | The part of the flower of a service where: It adds extra value for the customer |
| Information | [PIBO-Facilitating] it's about details about the core service, such as operating hours, how-to guides, or instructions such as prices, reminders, warnings, confirmations, summaries of activities, receipts, etc. |
| Order-Taking | [PIBO-Facilitating] These assist customers in placing orders or making requests such as step-by-applications, order entries, and reservations and check-ins such as mode of order, subscriptions, etc. Means for order placement. |
| Billing | [PIBO-Facilitating] Generating and delivering accurate bills for services rendered such as periodic statements of account, invoices, verbal statements of amount due or display of amount due. |
| Payment | [PIBO-Facilitating] Providing a range of payment options for customers to settle their accounts that primarily revolves around cash handling such as automated systems, human systems, etc. |
| Consultation | [CHES-Enhancing] Offering advice and expertise to customers on how to best use the service or make decisions such as customized advices, counseling, tutoring or training in product use. |
| Hospitality | [CHES-Enhancing] Providing welcoming and courteous service to customers during their interaction with the company. This extends to providing security, welcome food and drnks, greetings, waiting/lounge areas with free reading materials, or free shuttle |
| Safekeeping | [CHES-Enhancing] Protecting customer belongings while they are using the service, such as checking coats or storing luggage. More so, this can be child care, pet care, parking, baggage handling. |
| Exceptions | [CHES-Enhancing] Handling unusual requests, problems, or situations that fall outside the standard service offering. For example, handling complaints, refunds for unsatisfied service, special requests, or repair of a defective product. |
| Cost-based Pricing, Value-Based Pricing, & Competition-Based Pricing | Three Main Approaches to Pricing |
| Value-Based Pricing | [PRICING-APPROACH] Relating price to value/benefits perceived by customer. For example, Cebu Pacific vs Philippine Airlines |
| Competition-Based Pricing | [PRICING-APPROACH] Setting prices based on competitors' pricing strategies. In other words, you are dependent on a price leader. |
| Cost-based Pricing | [PRICING-APPROACH] Set prices relative to financial costs, activity, or the implications of cost analysis. Setting selling prices after computing for the variable cost and fixed cost. |
| Yield Management | a term used in replication with “revenue management”, the purpose of which is to maximize revenue. |
| Revenue management focuses on price Yield management maximizes revenue by focusing on selling price and selling activity | Difference between Revenue Management and Yield Management. |
| Airlines (First Class, Business Class, Economy Class), Hotels (Suites, Deluxe, Standard), Extended Stay Hotel, Car Rental (depending on the car borrowed), Cruise (has different types of room). | Where Yield Management is Applicable? |
| Fixed capacities (has limits in terms of occupancy, rentals) | To what capacity of a business is yield management appropriate? |
| Achieved Revenue / Potential Revenue = YM% | State the Basic Yield Management Formula |
| Yield Management | a pricing strategy that involves dynamically adjusting prices for a fixed, perishable resource to maximize revenue by understanding, anticipating, and influencing consumer behavior based on demand and other market factors |
| Demand Forecasting, Resource Optimization, Real-time dynamic pricing (prices that often adjusts depending on the season, ex. airfare tickets). | What other benefits does Yield Management provide? |
| Marketing Channel | a set of practices or activities necessary to transfer the ownership of goods, from the point of production to the point of consumption. |
| Marketing Channel | t is the way products and services get to the end-user (the consumer) |
| Distribution channel | other term for Marketing Channel |
| 1) Customer visiting 2) Service providers go to their customers 3) Service transaction is conducted at arm's length | Types of contact for service delivery (CSA) |
| Customer visiting | Determine the type of contact service delivery: Surgery & Hotel |
| Service providers going to their customers | Determine the type of contact service delivery: Home service massage & Food panda, etc. |
| Service transaction is conducted at arm's length | Determine the type of contact service delivery: pick-up services |
| 1) Exclusive distribution 2) Intensive distribution 3) Selective distribution | Types of Distributions (EIS) |
| Exclusive distribution | [EIS-TypesofDistribution] Service providers make a deal to sell their product only to one specific service retailer. They may also choose to sell their products only through their own brand via their website or physical storefronts. |
| Selective distribution | [EIS-TypesofDistribution] Service Companies choose specific, carefully vetted service providers or outlets to offer their service, aiming for quality, brand image, and control over the customer experience, rather than maximizing market reach |
| Intensive distribution | [EIS-TypesofDistribution] Service companies place their services in as many intermediaries as possible. |
| Intermediaries | entities that facilitate the delivery of services between service providers and consumers, acting as a bridge or liaison, and often include agents, brokers, or franchises |
| Franchise | a type of license that grants a franchisee access to a franchisor's proprietary business knowledge, processes, and trademarks, thus allowing the franchisee to sell a product or service under the franchisor's business name. |
| Service Delivery in Cyberspace | Involves providing services, like online shopping, streaming, or digital communication, through digital networks and technologies |
| Integrated Marketing Communications | a communications process for planning, creation, integration, and implementation of diverse forms of marcom (B2C&B) delivered to a brand’s targeted customers and prospects |
| Integrated Marketing Communications | Requires that all of a brand’s communication media deliver a consistent message |
| Media Advertising, Direct Response, Place Advertising, Store Signage and Point of Purchase, Trade and Consumer Promotioes, Event Marketing & Sponsorships, Marketing-oriented, Personal Selling | Marketing Communication Tools (MDPSTEMP) |
| Above-the-Line | A Method of Marketing: where mass media is used to promote brands and reach out to the target consumers |
| Below-the-Line | A Method of Marketing: This kind of marketing is the kind of marketing that targets specific groups of people with focus. More one to one, and involves the distribution of pamphlets, handbills, stickers, brochures, etc. |
| BTL | When budget is an issue and the brand wants a better ROI, what method of marketing should be used? |
| Outside-in approach: | An approach where: earn the media preferences and lifestyles of customers/prospects to know the best contexts to reach them with brand messages |
| Key IMC Feature #1 | [IMC-Key Features] The Consumer or Business Customer Must Represent the Starting Point for All Marketing Communications Activities |
| Key IMC Feature #2 | [IMC-Key Features] Use Any and All Marcom Tools That Are Up to the Task |
| 360-Degree Branding | A takeaway: A brand’s touch points should be everywhere the target audience is. |
| touch point | meaning: means any message medium capable of reaching target customer |
| Key IMC Feature #3 | [IMC-Key Features] Multiple Messages Must Speak with a Single Voice |
| Key IMC Feature #4 | [IMC-Key Features] Build Relationships Rather Than Engage in Flings |
| Loyalty programs | a takeaway: promote long-term relationships between customers and brands that lead to customer retention. |
| Experiential marketing program | a takeaway: can create brand experiences that make positive and lasting impressions on customers. |
| Key IMC Feature #5 | [IMC-Key Features] Don’t Lose Focus of the Ultimate Objective: Affect Behavior |
| Proactive MPR (Marketing-Oriented Public Relations | A tool for communicating brand merits, dictated by a firm's marketing objectives, offensively oriented and opprtunity seeking |
| Reactive MPR | A tool for conducting public relations in response to outside influences by providing a quick response to repair firm’s reputation, prevent market erosion, and regain lost sales |
| 1) Product Releases 2) Executive-Statement (News) Releases 3) Feature Articles | Forms of MPR (PEF) |
| Product Releases | A form of MPR: • Announce new products • Provide relevant information, features and benefit • Audiovisual product releases (video news releases, or VNRs) gained wide usage |
| Executive-Statement (News) Releases | A form of MPR: • Quoting CEOs and other corporate executives • May address a wide variety of issues • Published in the news section • Carry a significant degree of credibility |
| Feature Articles | A form of MPR: • Detailed descriptions of products or other newsworthy programs • Written for immediate publications or airing • Inexpensive to prepare |
| Crisis Management | Provides quick and positive responses to negative publicity to reassure consumers and lessen the damage following negative publicity |
| Reactive MPR | Addresses factors in a product’s defects and failures & provides responses to unanticipated market events |
| Rumor | report without known authority for its truth & talk or opinion widely disseminated with no discernible source |
| 1) Commercial Rumors 2) Conspiracy Rumors 3) Contamination Rumors | Types of Rumors (CCC) |
| Commercial Rumors | [TYPE OF RUMOR-CCC] Widely circulated but unverified propositions about a product, brand, company, store or other commercial targets |
| Contamination Rumors | [TYPE OF RUMOR-CCC] Deal with undesirable or harmful product or store feature |
| Conspiracy Rumors | [TYPE OF RUMOR-CCC] An attempt to explain harmful or tragic events as the result of the actions of a small powerful group. |
| 1) Antirumor campaigns 2) Word-of-Mouth (WOM) 3) Opinion Leaders 4) Buzz Creation | Ways to handle rumors (AWOB) |
| Antirumor campaigns | [RUMOR-HANDLING-AWOB] Deciding on the specific points in the rumor that need to be refuted & Emphasizing that the conspiracy or contamination rumor is untrue and unfair |
| Word-of-Mouth (WOM) | [RUMOR-HANDLING-AWOB] a tactic used to generate natural discussions about and recommendations for a product or company. |
| Opinion Leaders | [RUMOR-HANDLING-AWOB] are individuals who exert a significant amount of influence within their network and who can affect the opinions of connected individuals |
| Buzz Creation | [RUMOR-HANDLING-AWOB] The systematic and organized effort to encourage people to talk favorably about a particular brand—either over the fence or over the Internet—and to recommend its usage to others who are part of their social network |
| 1) Law of the Few 2) Stickiness Factor 3) Power of Context. | Why is Buzz creation akin to creating an Epidemic? |
| Manufacturing | Buss.Class.byNature: This converts raw materials, labors and overhead into finished products that are available for sale to customers |
| Extractive | Buss.Class.byNature: These companies are engaged in producing or exploration of raw or natural materials, such as minerals and other natural resources. Classification of Business by Nature of Activities |
| Service | Buss.Class.byNature: This provides intangible goods or services to customers. It usually generates profit by charging for labor or other services rendered to consumers, government or other companies |
| Tertiary, Secondary, & Primary sectors | Three types of economic sectors |
| Labour Intensive | When production heavily relies on using labor resources. |
| Capital Intensive | When production heavily relies on using capital resources. |
| Quaternary Sector | A type of economic sector where: it is focused on information technology (IT) businesses and information service providers such as research and development, business consulting and information gathering. |
| Smith (1776) | Who said that: "Services are different from goods because they are perishable. |
| Say (1803) | Who said that: As services are immaterial, consumption cannot be separated from production |
| A benefit without ownership | What is a service from a fresh perspective? |
| Goods, Services, & Ideas | What are marketed? |
| 1) Tangible 2) With ownership 3) Less Customer Involvement 4) Can be used at a later date | Define the characteristics of a Product |
| 1) Intangible 2) No ownership 3) More Customer Involvement 4) Produce and consumed at the same time | Define the characteristics of a Service |
| Intangibility, Perishability, Inseparability, & Heterogeneity | The characteristics of a service |
| Intangibility | A Service's Characteristic: No Physical Presence, Cannot be touched or hold. |
| Inseparability | A Service's Characteristic: The production of a service cannot be separated from its consumption — as soon as the service is delivered it is consumed. |
| Perishability | A Service's Characteristic: That it can’t be stored for later use or sale (No inventory). |
| Heterogeneity | A Service's Characteristic: Also known as "variability." It denotes that impossibleness of providing similar service every time. |
| Customer Decision Making | The Three-Stage Model of Service Consumption: This model divides the customer's experience into three distinct phases. |
| Pre-purchase Stage | The initial phase where the customer recognizes a need, searches for information, and evaluates alternatives before making a purchase decision. |
| Service Encounter Stage | The stage during which the customer directly interacts with the service provider. |
| Post-encounter Stage | The phase after service delivery where the customer evaluates the service performance and forms future intentions. |
| Perceived Need | The recognition by a customer that they have a want or a problem that can be addressed by a service |
| Evoked Set/Consideration Set | The set of alternatives that a customer actively considers when making a purchase decision. |
| Routine Problem Solving | [SERV.AIL.BUY.DEC.] A buying decision that is frequently made, with little consideration put into it. |
| Limited Problem Solving | [SERV.AIL.BUY.DEC.] A buying decision that has little search for the best brand or service. |
| Extended Problem Solving | [SERV.AIL.BUY.DEC.] A buying decision where the buyer spends a lot of time searching the best brand of service. |
| Free Trial, Display Credential, Use of Evidence Management, Offer Guarantee, Advertise, & Encouraged to visit facilities. | Strategic Responses to Managing Customer Perceptions (FDUOAE) |
| Search Service Products | [Classes of Services] Products with attributes consumers can readily evaluate prior to purchase (e.g., hotel room price). |
| Experience Service Products | [Classes of Services] Products with attributes that can only be assessed after purchase and during consumption (e.g., a concert). |
| Credence Service Products | [Classes of Services] Products with attributes consumers find difficult to evaluate even after purchase, often requiring reliance on reputation or expert opinions (e.g., surgery) |
| Customer Expectations Level | The set of beliefs about the level of service the customers will receive. |
| Desired Service Level | [CUST.EXP.LEVEL] The ideal level of service a customer hopes to receive. |
| Adequate Service Level | [CUST.EXP.LEVEL] The minimum acceptable level of service. |
| Predicted Service Level | [CUST.EXP.LEVEL] The level of service the customer anticipates receiving. |
| Zone of Tolerance | The range between the desired and adequate service levels, representing acceptable variations in service delivery. |
| Purchase Decision | This is the process when a customer decides whether to buy the service or not. |
| Service Encounter Stage | The stage during which the customer directly interacts with the service provider. |
| Moments of Truth | Specific points of contact where the customer interacts with the service provider and forms an impression of the service quality. |
| Servuction System | A visual framework which shows the actual service encounter. |
| Post-encounter Stage | The phase after service delivery where the customer evaluates the service performance and forms future intentions. |
| Satisfaction | An attitude-like judgment following a service purchase or series of service interactions. |
| Service Judgements by Comparison | When the customer will compare the actual service performance to expectations |
| Positive Disconfirmation | [DISC.TYPES] The service exceeds customer expectations, leading to satisfaction |
| Confirmation | [DISC.TYPES] The service meets customer expectations, resulting in satisfaction. |
| Negative Disconfirmation | [DISC.TYPES] The service falls short of customer expectations, leading to dissatisfaction. |
| Customer Delight | Going Beyond Satisfaction is when customers experience unexpectedly high levels of performance, arousal |
| Functional Risk | [PERC.RISKS] The risk that the service will not perform as expected, leading to unsatisfactory outcomes. |
| Social Risk | [PERC.RISKS] The risk that the service will not be viewed favorably by others, leading to negative social consequences. |
| Physical Risk | [PERC.RISKS] The risk of personal injury or damage to possessions resulting from the service. |
| Psychological Risk | [PERC.RISKS] The risk that the service will cause negative emotions or fears |
| Finance Risk | [PERC.RISKS] The risk of unexpected extra costs or monetary loss associated with the service. |
Created by:
RamRamRam