10. Services & Experiences

Question 1

What is the reasons for growing interest in services marketing?

Answer 1

• Growth in service industry
• Deregulation of many service industries (banking, airlines, telecommunications)
• Increased competition in service industry
• Changing demographic and socio-economic profile of Australian society
• Increased use of a co-creation business model

Question 2

What are the problems faced by service marketers?

Answer 2

• Intangibility
• Inseparability
• Variability
• Perishability

Question 3

What is the definition of intangibility?

Answer 3

• It means that it is not something we can sense or feel
• Services are evaluated subjectively prior to purchase

Example:
A cinema experience may include evaluation of:
- Treatment by service employees
- Behaviour of other customers
- Condition of the servicescape (the ambience and environment in the area)

Question 4

How to augment products with services?

Answer 4

Ordering ease, Delivery, Installation of product, Returns

Question 5

What is the difference between goods and services?

Answer 5

• Goods are produced → sold → consumed
• Services are sold → produced + consumed

Question 6

How to increase variability?

Answer 6

Increase degree of human interaction and intangibility

Question 7

What is the definition of perishability?

Answer 7

• It will not exist after some time
• Services can’t be saved
• There is fluctuations in demand but not in supply

Question 8

What is the definition of physical evidence(environment)?

Answer 8

Environment is where the service is assembled using tangible elements, and where the firm and customer interact.

E.g cinema, cafe

Question 9

What is the definition of people/participants?

Answer 9

People includes all humans partaking in the service delivery to the customer
- Traditional mindset
- workers follow rules
- Market-focused mindset
- Upside down pyramid where workers are supported

e.g waiter

Question 10

What is the definition of process?

Answer 10

Process is the actual procedure and stages of the service being delivered

Question 11

What is the definition of process?

Answer 11

Process is the actual procedure and stages of the service being delivered

Question 12

What is the definition of customer experience?

Answer 12

Customer experience is what consumers think, feel, sense and do when deciding to purchase a product

Question 13

What is the difference between CX and consumer decision?

Answer 13

Consumer decision-making using rational and tells how consumers purchase decisions

Question 14

What is the significance of CX?

Answer 14

• Expectations
• Interactions
• Resources
• Responses

Question 15

What are the types of touch points?

Answer 15

Brand-owned: Loyalty programs, store atmospherics,
advertising, etc.
- Qantas, Flybuys

Partner-owned: Shipping services, maintenance and repair, cleaning
- Fedex, Auspost

Customer-owned: Body and mind, other resources

External: Weather, other customers
- e.g cinema noise, restaurant noise
- After the economy, the weather is the factor that impacts consumer behaviour the most

Question 16

What is the definition of pain points?

Answer 16

• Pain points are persistent problems with a problem that inconvenience customers and their businesses
• Pain points are unmet needs waiting to be satisfied

Question 17

What types of pain points are there?

Answer 17

• Support pain points
  
  • App is too confusing to set up
• Financial Pain Points
  
  • I don’t think it’s worth the price
• Productivity Pain Points
  
  • It’s just too difficult to use
• Process Pain Points
  
  • I need something to help

Question 18

What is the definition of customer journey?

Answer 18

A customer journey maps the purchase journey from the customer’s point of view in order to understand the efficiency of the company process.

Question 19

How do you integrate digital, physical and social realms to
create superior CX?

Answer 19

• Increase the social presence in
  digital experiences
• Blend the digital, physical, and social dimensions of experiences
• Start from desired qualities for the experience
• Determine touchpoint constellation
• Experiment, communicate, adjust, iterate

Question 19

How do you integrate digital, physical and social realms to
create superior CX?

Answer 19

• Increase the social presence in
  digital experiences
• Blend the digital, physical, and social dimensions of experiences
• Start from desired qualities for the experience
• Determine touchpoint constellation
• Experiment, communicate, adjust, iterate

Question 20

What is the definition of service failure?

Answer 20

When the product or service doesn’t meet up to what it was required to do.

Question 21

What parts of the product causes product failure?

Answer 21

• Conformance
• Durability
• Aesthetics
• Reliability

Question 22

What parts of the product causes service failure?

Answer 22

• Reliability (technical)
• Responsiveness (technical)
• Assurance (functional quality)
• Empathy (functional)
• Tangibles (functional)

Question 23

What is the downside of service failure?

Answer 23

• Businesses don’t hear from 96% of unhappy customers so they can’t even fix the problem
• News of bad reviews are twice as impactful as the good

Question 24

What types of qualities are there?

Answer 24

Technical - outcome (what is delivered) Functional - outcome (how it is delivered)

Question 25

What is the definition of service recovery?

Answer 25

Involves the responsive action to recover dissatisfied customers and convert them to satisfied customers in order to maintain customer relationship

Question 26

What are the upsides of service recovery?

Answer 26

- 70% of complaining customers will be retained if the complaint is resolved - 95% will be retained if it is resolved quickly

Question 27

What are the implications to service marketing?

Answer 27

Doing the job right the first time + effective complaint handling = increased customer satisfaction & loyalty Solving an issue increases satisfaction and loyalty which leads to posit word of mouth about the fix

Question 28

How does a customer feels after a service recovery?

Answer 28

Distributive fairness - Was I compensated fairly? Procedural fairness - Was it easy to complain? Interactional fairness - Did they treat the customers nicely

Question 29

What the service recovery paradox?

Answer 29

Customers experiencing failures then having their issues fix pulls them to the loyalty toward the company’s service industry

Question 30

How to detect service failure?

Answer 30

Develop service employees to: - gather customer information - measure their own performance - identify unhappy customers - find the root causes of value delivery problems - Improve service delivery processes

Question 31

What is the process to correct service failure?

Answer 31

- Identify service failures - Resolve customer problems - Communicating & classifying service failures - Integrating data & improving overall service