Chapter 10 Flashcards
(14 cards)
service
an intangible offering (of value to the customer) that involves an act, performance, or effort and one that cannot be physically possessed/owned.
Characteristics of services
Intangible
Inseparable from the provider
Cannot be held in inventory
Inconsistent: More human = More variability
Service Quality
Customers’ perceptions of how well a service meets or exceeds their expectations
Service < expectations Dissatisfied customers
Service = expectations Satisfied customers
Service > expectations Delighted customers
Service Gap
When service delivery fails to meet customer expectations
4 gaps
a. Knowledge gap
b. Standards gap
c. Delivery gap
d. Communication Gap
Knowledge gap
Firms don’t know what customers want
Knowledge gap - Proposed Solutions
Marketing Research: understand customers service expectations, perceptions of quality
Measure service quality
Zone of Tolerance : Area between level of desired service and minimum acceptable, if you fall below the zone of tolerance, customers will consider switching to the competition
Standards gap
Firm’s standard of service is not in sync with consumer expectation
Standards gap - Proposed Solutions
Employees know what is expected of them
Set service quality goals to enforce standards
How to perform tasks to these standards
Top Management Commitment
Delivery gap
Employees unable to implement/deliver firms service standards and promises
Delivery gap - Proposed Solutions
Empowerment : Allow employees to make decisions to help customers
Support, Motivation, & Incentives: Emotional support & instrumental support, Rewards for excellent service
Use Technology: Reduce inconsistency in service
Communication Gap
When the firm overpromises and underdelivers
Communication Gap - Proposed Solutions
- promise what can be delivered
- managing customer expectation
Service recovery
actions service organizations and its employees perform to rectify grievances or loss caused by service failure
Apology, replacement, compensation, etc.
