Save
Upgrade to remove ads
Busy. Please wait.
Log in with Clever
or
show password
Forgot Password?
Don't have an account?  Sign up 
Sign up using Clever
or
Username is available taken
show password


Make sure to remember your password. If you forget it there is no way for StudyStack to send you a reset link. You would need to create a new account. Your email address is only used to allow you to reset your password. See our Privacy Policy and Terms of Service.

Already a StudyStack user? Log In

Reset Password
Enter the associated with your account, and we'll email you a link to reset your password.
focusNode
Didn't know it?
click below
 
Knew it?
click below
Don't Know
Remaining cards (0)
Know
0:00
edit
Embed Code - If you would like this activity on your web page, copy the script below and paste it into your web page.

  Normal Size     Small Size show me how

MARKETING 03-02

KEY TERMS, CONCEPTS

QuestionAnswer
CHAPTER 12 p. 188 INTANGIBILITY A CREDENCE QUALITY is a characteristic that consumers may have difficulty assessing even after purchase because they do not have the necessary knowledge or experience. EXAMPLES are medical and consulting services.
Marketers often rely on tangible cues to communicate a service's nature & quality. FOR EXAMPLE, Travelers' Insurance Co. uses an umbrello symbol as a tangible reminder of the protection that insurance provides. INSEPARABILITY Goods are produced,sold,& then consumed. In contrast, services are often sold, produced, & consumed at the same time.In othr words, their production & consumption are inseparable activities.
INSEPARABLILITY means that, because consumers must be present during the production of services, LIKE haircuts or surgery, they are actually involved in the production of the services they buy. HETEROGENEITY the variability of the I/Os of serv, which causes serv to tend to be less standardized & uniform than goods.FOR EX.,physicians in a group practice or barbers in a barber shop differ within ea group in their tech & interpersonal skills.
Services tend to be labor intensive, consistency,reliability & quality control can be hard to achieve. Standardization & Training help increase consistency & reliability. Marriott is known for standardizing its hotels downs to the smallest detail-from how much bleach is used to clean the floor & which flushers are on the bathroom toilets.
PERISHABILITY the fourth characteristic of services,which means inability of services to be stored, warehoused, or inventoried.EX. an empty hotel room or airplane seat produces no revenue that day. The revenue is lost. SERVICE QUALITY Because of the 4 unique characteristics of services, serv quality is more difficult to define & measure than is the quality of tangible goods.
Research has shown that customers evaluate service quality by the following 5 components:RELIABILITY,RESPONSIVENESS,ASSURANCE,EMPATHY,TANGIBLES. RELIABILITY the ability to perform a service dependably, accurately, & consistently.
RESPONSIVENESS the ability to provide promp service. EX: calling the customer back quickly. ASSURANCE the knowledge & courtesy of employees & their ability to convey trust.
EMPATHY caring, individualized attention to customers. TANGIBLES the physical evidence of a service, including the physical facilities, tools, & equip used to provide the service.
THE GAP MODEL OF SERVICE QUALITY A model of service quality called the Gap Model indentifies five gaps that can cause problems in service delivery & influence customer evaluations of serv quality. GAP 1: the gap between what customers want & what mgmt thinks customers want. This gap results from a lack of understanding or a misinterpretation of the customer's needs, wants, or desires.
GAP 2: the gap between what mgmt thinks customers want & the quality specifications that mgmt delelops to provide the service. Essentially, this gap is the result of mgmt's inability to translate customers' needs into delivery systems within the firm. GAP 3: the gap between the serv quality specifications & the serv that is actually provided. If both gaps 1 & 2 have been closed, then gap 3 is due to the inability of mgmt & employees to do what should be done.
GAP 4:the gap between what the co provides & what the cust is told it provides. This is clearly a comm gap. It may include misleading or deceptive advrtzing campain promising more than the firm can deliver or doing "whatever it takes" to get the business. GAP 5: the gap between the serv that custs recv & the serv they want. This gap can be pos or neg. For ex, if a pt. expects to wait 20 min in the Dr's offce before seeing the Dr. but actually waits only 10 mins, the pts eval of serv quality will be high.
When one or more of these gaps is large, service quality is perceived as low. As the gaps shrink, service quality perception improves. MARKETING MIXES FOR SERVICES Services' unique charac-intangibility, inseparability of production & consumption, heterogeneity, & perishability-make marketing more challenging.
Elements of the marketing mix (product, place, promotion & pricing) need to be adjusted to meet the special needs created by these characteristics. PRODUCT (SERVICE) STRATEGY A product is everything a person receives in an exchange.
PRODUCT STRATEGIES: decision on the type of process involved, core & supplementary serv, standardization or customization of the service product, & the service mix. SERVICE AS A PROCESS: Two broad categories of things get processed in service organizations: people and objects. The process is physical or tangible, & in others intangible.
SERVICE PROCESSES can be placed into one of four categories.PEOPLE PROCESSING, POSSESSION PROCESSING, MENTAL STIMULUS PROCESSING, and INFORMATION PROCESSING. PEOPLE PROCESSING takes place when the service is directed at a customer. EXAMPLES ARE: transportation services & health care.
POSSESSION PROCESSING occurs when the service is directed at customers' physical possessions. EXAMPLES ARE: lawn care, dry-cleaning, and veterinary services. MENTAL STIMULUS PROCESSING refers to services directed at people's minds. EXAMPLES ARE: theater performance & education.
INFORMATION PROCESS describes services that use technology or brainpower directed at a customer's assets.EXAMPLES are insurance & consulting. CORE & SUPLEMENTARY SERVICE PRODUCTS The serv offering can be viewed as a bundle of activities that includes the core serv, which is the most basic benefit the customer is buying, and a group of supplementary serv that support or enhance the core serv.
CUSTOMIZATION/STANDARDIZATION An important issue in developing the service offering is whether to customize or standardize it. CUSTOMIZED SERVICES are more flexible and & respond to individual customers' needs. They also usually command a higher price. STANDARDIZED SERVICES are more efficient & cost less.
Instead of choosing to either standardize or customize a service, a firm may incorporate elements of both by adopting an emerging strategy called mass customization, which uses technology to deliver customized services on a mass basis. THE SERVICE MIX Most service org market more than one service. FOR EXAMPLE TruGree offers lawn care,shrub care,carpet cleaning, industrial lawn services.Ea part of the serv should make a different contribution to the firm's goals.
Designing a service strategy means deciding what new services to introduce to which target market, what existing services to maintain, & what services to eliminate. PLACE (DISTRIBUTION) STRATEGY Distribution strategies for service org must focus on such issues as CONVENIENCE, NUMBER OF OUTLETS,DIRECT VERSUS INDIRECT DISTRIBUTION, LOCATION, & SCHEDULING.
A key factor influencing the selection of a service provider is CONVENIENCE. FOR EXAMPLE, infirm or elderly pts. wowuld probably prefer to use a doctor who makes house calls. An important distribution objective for many service firms is THE NUMBER OF OUTLETS to use or THE NUMBER OF OUTLETS TO OPEN during a certain time.
The next service distribution decision is whether to distribute services to end users DIRECTLY OR INDIRECTLY thru other firms. EXAMPLES include legal, medical, accounting, & personal care services. The newest form of direct distribution is the INTERNET. The LOCATION of a service most clearly reveals the relationship between its target market strategy and distribution strategy.
For time-dependent service providers SUCH AS airlines, physicians, & dentists, SCHEDULING is often a more important factor. PROMOTION STRATEGY Marketers have more trouble promoting intangible services that tangible goods.
Here are 4 promotion strategies they can try: STRESSING TANGIBLE CUES, USING PERSONAL INFOR SOURCES, CREATING A STRONG ORGANIZATIONAL IMAGE, ENGAGING IN POST PURCHASE COMMUNICATION. STRESSING TANGIBLE CUES a tangible cue is a concrete symbol of the service offering. To make their intangible serv more tangible, hotels turn down the bedcovers & put mints on the pillows.
USING PERSONAL INFOR SOURCESA personal info sources is osmeone consumers are familiar with (such as a celebrity) or someone they admire or can relate to personally. Serv firms may seek to simulate positive word-of-mouth communication.
Created by: cacox2
 

 



Voices

Use these flashcards to help memorize information. Look at the large card and try to recall what is on the other side. Then click the card to flip it. If you knew the answer, click the green Know box. Otherwise, click the red Don't know box.

When you've placed seven or more cards in the Don't know box, click "retry" to try those cards again.

If you've accidentally put the card in the wrong box, just click on the card to take it out of the box.

You can also use your keyboard to move the cards as follows:

If you are logged in to your account, this website will remember which cards you know and don't know so that they are in the same box the next time you log in.

When you need a break, try one of the other activities listed below the flashcards like Matching, Snowman, or Hungry Bug. Although it may feel like you're playing a game, your brain is still making more connections with the information to help you out.

To see how well you know the information, try the Quiz or Test activity.

Pass complete!
"Know" box contains:
Time elapsed:
Retries:
restart all cards