chapter 12 Flashcards
(61 cards)
Services
intangible activities/benefits that an org provides to satisfy consumers’ needs in exchange for money or something else of value
Services
are situations where there is no tangible product. However, services may surround a tangible product
Four I’s of Services
- intangibility
- inconsistency
- inseparability
- inventory
Intangibility (Personify)
services cannot be held, touched, or seen before the purchase decision (intangible)
-Associates person w/ service & establishes connection you would normally feel by touching things
Ex: Flo from Progressive, legal service, salon service
Inconsistency (Service Industrialization)
quality of service is inconsistent
-Servs are about the performance & are being delivered by people who are inconsistent
Ex: Soprano at New York’s Opera has a cold & gives a less-than perfect performance on the night that you attend
Inseparability (Customer Participation)
Consumer cannot separate service deliverer from the service itself
-You can’t separate the customer from it because they’re purchasing it
› Serv provider & consumer co-create value together
Ex: Haircuts, doctor visits, food servs
Inventory (Yield Management)
Cost of paying service provider & needed equipment
Idle Production Capacity
Service provider available but no demand for the service
Ex: Physician is paid to see patients but no one schedules an appointment, the fixed cost of the idle physician’s salary is a high inventory carrying cost
Service Continuum
the range of offerings companies bring to the market, from the tangible to the intangible or the product-dominant to the service-dominant
Three Ways Services Can Be Classified
- Delivery by People or Equipment
- For-Profit or Nonprofit Orgs
- Government Sponsored
Delivery by People or Equipment
Classification of services based on how they are delivered
Ex: Lawyers & self-checkout
For-Profit or Nonprofit Orgs
distinguished by tax status
Nonprofit Org: excesses in revenue over expenses are not taxed or distributed to stakeholders. When excess revenue exists, the money goes back into the org
Ex: Salvation Army
Government Sponsored
governments at the federal, state, and local levels provide a broad range of services
Ex: USPS
Successful service orgs, must…
(1) understand how the consumer makes a service purchase decision
(2) understand how the consumer evaluates quality
(3) determine how to present a differential advantage relative to competing offerings
The Purchase Process
consumers use search, experience, & credence properties to evaluate product/services
Search Properties
color, size, and style, which can be determined before purchase
Ex: Clothing, jewelry, furniture (tangible products)
Experience Properties
Characteristics discerned only after purchase or during consumption
Ex: Restaurants, child care, vacations, haircuts
Credence Properties
Characteristics impossible to evaluate even after purchase & consumption
Ex: Medical diagnoses, legal servs, auto repair, root canal
Assessing Service Quality
consumer compares expectations about a service offering to his/her actual experience w/ the service
Gap Analysis
compares the differences b/w the consumer’s expectations about experiences w/ a service based on dimensions of service quality
Five Dimensions of Service Quality (RATER)
- Reliability
- Assurance
- Tangibles
- Empathy
- Responsiveness
Reliability
ability to perform the promised service dependably & accurately
-being consistent
Ex: Is my flight on time?
Assurance
knowledge & courtesy of employees & their ability to convey trust/confidence
-Confidence that you’re going to meet my needs
Ex: Are the ticket counter attendants, flight attendants, & pilots knowledgeable about their jobs?
Tangibles
appearance of physical facilities, equipment, personnel, & communication materials
Ex: Clean shelves at stores
