Chapter 1 - Intro Flashcards Preview

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Flashcards in Chapter 1 - Intro Deck (48):
1

What do instagram and lambo have in common?

Both companies are worth about a billion dollars. But Instagram is primarily a service, and Lambo is a product

2

Are services growing?

Dramatically, yes

3

What are 4 reasons services matter?

1. Services are growing

2. Lead to customer retention and loyalty

3. Service leads to profits

4. Services help manufacturing companies differentiate themselves

4

How does service lead to cust retention?

Cust satisfaction and loyalty driven by service excellence

5

Why does service lead to very high profits?

Can provide high profit margins and growth potential than products

6

For automobile dealers, how does services lead to profits?

After-sale services and parts account for nearly 80% of all revenue opportunities

7

How is tangibility a spectrum?

Salt for exampe is very tangible,

Fast-food is in the middle

Teaching is intangible

8

What is a SERVICE?

Includes every interaction between any customer and anyone representing the ecompany including:

 

-dealers

-web site

-salespeople

-billing and accounting personnel

-service employees

-receptionists and schedulers

-management and executives

9

What can all these mean?

 

product such as MBA

customer service

service value add for goods

Service embedded in a tangible product

SERVICE

10

What makes a service intangible?

They are performed, not produced!

 

It means it cannot be touched or physically examined

11

What are the marketing implications of intangibility? (3 things)

Using tangible symbols to communicate benefits of service

apply branding straategies to differentiate

offer samples to allow them to experience beforehand

12

What is SIMULTANEITY?

 

What is an implication

Production and consumption of services are often simultaneous. Such as getting haircut

 

sometimes called inseparability

 

The implication is that services cannot be seperated from the person that performs them

13

What is the marketing implication of simultaneity?

 

3 things

aBecause they cannot be separated from the preson that performs them, service provider=service

 

Atmospherics such as where the service is performed plays an important role

Quality of entire service performed is

14

What is heterogeneity?

This is when services are slightly different each time they are performed

 

sometimes called inconsistency

 

cannot be standardized to the extent that goods can be

15

What are the marketing implications of heterogeneity?

 

3 things

The quality of service depends upon:

provider, client, and situation

 

Traning, standards are important

empahise personalized nature of service

16

What is perishability?

Means services cannot be stored? No shelf life, cannot be returned or resold

 

Sometimes called inventory restrictions

17

What is the marketing implications of perishability?

Use price and promotion to match supply and demand

  • hire part time employees
  • pre-selling
  • self-service strategies

such as barista cant presell, but instead must sell one at a time

18

What three things are services evaluated on?

1. search qualities

2. Experience qualities

3. Credence qualities

19

For service evaluation, what are the search qualities?

These can be assessed before purchase and are easy to evaluaate, but they are often not present of low presense

20

For service evaluation, what are the experience qualities?

These can be assessed only after purchase, but are more difficult to evaluate.

 

Service tend to be high in experience qualities, such as you will absolutely know after your haircut if you will like it or not

21

For service evaluation, what are the credence qualities?

These cannot be evaluated, even after purchase and consumption.

 

An example is surgery, you don't really know, or is very difficult to evaluate. 

22

For the 3 service evaluation metrics, which are high in service and which are low?

Usually services are high in experience and credence qualities, but not search qualities

23

What are 9 challenges for services marketing?

1. Defining and improving quality

2. Designing and testing a new sercie

3. Communicating a consistent image for yourself

4. accomodating fluctauting demand

5. Motivating and sustaining employee committment

6. Coordinating marketing, operations, and HR

7. Setting prices

8. Finding a balance between standardization versus personalization

9. Ensuring the delivery of consistent quality

24

4Ps

Product

Price

Place

Promotion

25

What are the 7 P's?

1. Product

2. Price

3. Place

4. Promotion

5. People

6. Physical evidence

7. Process

26

Describe people of the 7Ps

It is all human actors who oplay part in service delivery, and influence buyers perception. Also customers, and other people in environment

27

Describe the physical evidence part of 7Ps?

IT is the environment in hwich the service is delivered and where the firm and customer interact, and any tangible coponents that facilitate performance and quality

28

Describe last part of 7Ps

Look it up

29

Is there opportunity about services industry?

Yup, many have a hard time doing it. And it has a negative vibe in the US, but there is a big opportunity for any comany that can successfully pull it off

30

Define services

deeds, processes, and performances provide by one entity or person for another entity or person

31

What is SERVICE AS A PRODUCT?

wide range of intangible product offerings such as Cossette selling campaigns and petsmart selling shampoo services

32

Is Customer service free?

usually, and it should not be confused with services provided for sale by the company

33

What is Derived service?

This is a big different way to look at services, and says that everything is service. So even tangible razor provides shaving service

34

In 2009, how much of employement and GDP was service based in the US?

80% employment

75% GDP

35

Why are traditional product based companies now focusing on services? 3 things

1. Price and margin pressure on goods (like amazon to retail)

2. Customer demand for services

3. Services have higher profit margins than products

4. Can be differentiator in highly competitive markets

36

Specific demand for service marketing concepts has come from where?

Deregulated industries and professional services

37

Is services profitable?

YES! the Service-profit chain is large and in charge with customer satisfaction creating huge profits

38

What are some explanations as to why there is a decline in customer satsifaction with services?

  1. Many customers getting less esrvice cause of tiered service based on profitbaility
  2. Self service is decreasing human interaction
  3. Many tech based services are poorly designed and hard to use
  4. Customer service expectations are super high now
  5. Organizations becoming to lean to offer good service
  6. Talented workers don't stay as frontline service people for long
  7. Many companies tell employees about good customer esrvice, but don't properly train them

39

Is the internet a service?

Yup

40

What are 4 characteristics of goods?

  1. Tangible
  2. Standardized
  3. Production seperate from consumption
  4. Nonperishable

41

What are the 4 characteristics of services?

1. Intangible

2. Heterogenous

3. Simultaneous production and consumption

4. Perishable

42

What are some marketing implications of services being intangible?

Cannot be inventoried, so unused rooms in the winter will just sit there

Cannot be easily patented, can be copied

Cannot be easily communicated to customers

CCost of a "unit of service" is hard to determine

43

What are the marketing implications of heterogeneity?

Well, depending on current demand, factors in environment, how fresh service providor etc, the service quality will always fluctaute, and it's hard to deliver in consistent manner

44

What is a marketing implicaton for simulatenaous production and consumption?

Well customer sees all processes, which could be negative or positive. Such as seeing the subway girl wipe her snot with her gloves than make your sandwich

45

What is a marketing implicatoin with perishability?

Since they really cant forecast utilization and demand perfectly, they have to be away of services performed at what time. Also if something goes bad like a bad haircut, it can't be returned so the haircutter is going to need to know how to restore goodwill

46

For the extended marketing mix, what is the people?

These are all human actors involved. So employees, you, and other customers

47

For the extended marketing mix, what is the Physical evidence?

This is the environment in which service is delivered. So like Lydias needles and chair and whatnot and her studio itself

48

For the extended marketing mix, what is the process?

The service delivery and operating systems. So McDonalds is a good example of one that is very defined

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