Flashcards in Chapter 9: Services Marketing Deck (33):
What is SERVICE MARKETING?
Concerns itself with intangible services like banking services, investment services, rental services, travel services, consulting services, accounting services, health care services, and educational services.
What 3 things must service sellers prove to potential customers?
1. There is a problem needing attention
2. They are the person to solve the problem.
3. The solution delivers good value for money.
What are the 4 main characteristics of a service?
What is INTANGIBILITY?
Service experiences are subjective. Each individual may receive the same service, but experience it differently.
How can you overcome intangibility?
Offering evidence of quality as part of the service experience. (Excellence Awards, Quality Sales Materials, Beautiful & Functional Websites)
What is INSEPARABILITY?
It is impossible to separate the service from the service provider. From a customer's point of view the ability to do the job is assumed.
How can you overcome inseparability?
Care and personal attention increase the perceived service quality for consumers.
What is VARIABILITY?
Service providers are human and humans deliver an uncertain level of consistency.
How can you overcome variability?
Defying human nature requires a lot of training and skills to handle unique and potentially difficult situations.
What is PERISHABILITY?
Service providers can't store their great performances for next year's customers. Once the service is done, it is done. Great service must be repeated. (Movie theater times)
How can you overcome perishability?
Service providers try to manage perishability by managing fluctuating demand or by matching supply with changing demand. (Holiday hiring, discount prices during "off-season") This preparation should be completed ahead of time.
What are the 7 P's of services marketing?
Product, place, price, promotion (same as product marketing) BUT add People, Process, and Physical Environment.
Explain the PEOPLE (7 P's) element of services marketing.
Smart recruiting and thorough training are essential. Service marketers must hire because of who people are. Skills can be trained but personalities last a lifetime.
Explain the PROCESS (7 P's) element of services marketing.
Service providers need a good system to help them deliver the service. (Defined and efficient) Frontline workers know when the system needs tweaking.
Explain the PHYSICAL ENVIRONMENT (7 P's) element of services marketing.
Services need physical evidence of quality. The physical environment can provide the needed evidence. (Well-lit stores, clean bathrooms, nice displays, etc)
Into what 4 categories can service provider employees be divided?
1. Tiger (High quality of service, high productivity)
2. Kitten (Low quality of service, low productivity)
3. Fox (Low quality of service, high productivity)
4. Servant's Heart (High quality of service, low productivity)
Define a "TIGER."
Tigers push against the system and try to make changes.
Define a "FOX."
Foxes learn how to beat the system. Avoid difficult problems.
Define a "KITTEN."
Kittens think negative feedback means they are lucky to have a job. They feel they deserve criticism.
Define a "SERVANT'S HEART."
Tend to migrate to high service quality but low productivity situations (customer care rep who wants to take care of customer but does so sloooowly)
What kind of feedback should service providers give their employees?
They want to give people a sense of what they are doing well.
They want to identify progress and maintain a positive, optimistic attitude.
What 6 things do BAD BOSSES do?
1. Make decisions without considering the human consequences.
2. Make promises to employees with no intention of following through so that employees will do what they are told without asking questions.
3. Push forward a personal agenda at the expense of the organization and employees.
4. Undermine the reputation of their employees.
5. Push off the negative consequences of their decision onto the backs of their employees.
6. Tell an employee what the employee wants to hear and then completely change their tune once the employee walks out the door.
What could be the "secret sauce" of enabling service providers to defy human nature and deliver consistent quality?
A positive state of mind and positive momentum.
Summarize the NURSE case study.
Widespread job dissatisfaction and burnout among nurses is a well-known issue in the healthcare industry. This affects the patients and leads to high readmission rates. The government has decided to punish hospitals with high readmission rates (based on Medicare patient satisfaction) in an effort to drive down costs of Medicare.
Hospital administrators are pushing back instead of attempting to improve working conditions for nurses.
Summarize TEACHER case study.
Teachers are increasingly dissatisfied and insecure about their jobs. They increasingly feel they are not "professionals" or taken seriously about their jobs.
Teachers that ARE happy said they were given enough time to prepare for class, had a system of engaging parents in the learning, and felt like there were opportunities to be involved in team building and problem solving.
Summarize FINANCIAL ESTABLISHMENTS case study.
Banks are harder to trust these days because fierce competition has led to price competition. (Hidden fees, transaction fees, etc).
The solution is to make firms compete on QUALITY rather than price.
What are the 5 determinants of service quality?
What is RELIABILITY? (5 determinants of service quality)
The ability to perform the promised service dependably and accurately.
What is ASSURANCE? (5 determinants of service quality)
Includes competence, courtesy, credibility, and security.
What are TANGIBLES? (5 determinants of service quality)
Include appearance of physical facilities, equipment, and personnel.
What is EMPATHY? (5 determinants of service quality)
Includes access, communication, and understanding.
What is RESPONSIVENESS? (5 determinants of service quality)
Helping customers promptly.