Chapter 1: A Marketing Perspective on Service Flashcards
What is the underlying philosophy in services marketing
Services are unique and the marketing there of is different to the marketing of physical goods
What are the characteristics that distinguish services from products/goods
intangibility - products that are tangible can be tasted, felt, smelled, stored or seen prior to purchasing. The same cannot be said of services
inseparability - reflects the interconnectivity between the service provider and the customer receiving the service
heterogeneity - the variations inconsistency that may occur between different service transactions
perishability - the service cannot be stored in a store room and used later, it is essentially a result of variations in demand and supply
lack of ownership - services cannot be owned. The customer may purchase the right to access the service process but no physical transfer of ownership takes place
What is the definition of a service
Any act or performance that one party can offer to another that is intangible and does not result in the ownership of anything
What are pure services
Organizations that do not provide a tangible product
What are components of the service sector
legal, educational, health, military, employment, credit, communications, transportation, and information services
What are the different classifications of services
Equipment based services
People based services
*
Digital based services
What are the seven P’s of services (service value mix)
-product
-place
-price
-promotion
added for services
-process: refers to the procedures mechanisms and flow of activities
-physical evidence: can also include facility, design, equipment, reports, uniform, business cards, anything tangible that facilitates the performance or communication of the service
-people: all aspects of employee involvement in service delivery this includes employee recruitment, interaction with customers & training
What are the ethical concerns in service marketing
-Exploiting customer ignorance
Customers paying for work that is not been done properly or at all
-Complexity and fairness
Just treatment equity and impartiality among customers
What addresses the relationship between service and profitability
It is a framework known as the service profit chain
Explain the service profit chain
*internal service quality shows that 1)employee satisfaction drives 2)employee retention (loyalty) which drives 3)employee productivity - then leading to *external service value which is 4)customer satisfaction and customer satisfaction leads to 5)customer loyalty leading to 6)profitability and growth
Define productivity
It is the efficiency in the process of transforming input resources in a service or manufacturing process into customers value
What is the difference between internal and external efficiency
Internal efficiency also called cost efficiency is how efficiently outputs can be produced using a given amount of production resources while external efficiency is how efficiently and effectively perceived quality can be produced
What is the difference between effectiveness and efficiency
effectiveness refers to doing the right thing while efficiency refers to doing the thing right
What are the outputs of service processes
1)quality output
2)quantity output
Is the quantity delivered dependent on the demand of the customers
Yes. If the demand needs supply capacity efficiency is optimal. If there is excess demand capacity utilization is full. If demand is lower than output then capacity is underutilized
