Exam 2 - Chapter 13

Question 1

Service (as a product)

Answer 1

an intangible product that involves a deed, a performance, or an effort that cannot be physically possessed

ex: hotels, laundry, college ed., etc.; **NOT customer service

Question 2

Service as Theater

Answer 2

actors (service workers) create a performance (service)

Question 3

6 Characteristics of Services

Answer 3

a. intangibility
b. inseparability of production and service
c. perishability
d. heterogeneity
e. client-based relationships
f. close customer contact

Question 4

Intangibility

Answer 4

distinguishes a service from a good

a service is not physical and cannot be perceived by the senses

ex: you can’t feel insurance

Question 5

Tangibility Continuum

Answer 5

products are not necessarily just goods or services, they lie along a continuum

pure goods are rare because most goods have a service component

ex: sugar to education

Question 6

Inseparability of Production and Consumption

Answer 6

the quality of being produced and consumed at the same time

implies a shared responsibility between the customer and service provider - they work together

ex: surgery

Question 7

Perishability

Answer 7

unused service capacity from one time period cannot be stored for future use

must balance supply and demand

ex: hotel rooms per night

Question 8

Heterogeneity

Answer 8

service has variations in quality when delivered by people

manufactured goods are easier to standardize

as more people become involved people spend more time and there are more opportunities for bad quality

Question 9

Client-Based Relationships

Answer 9

interactions that result in satisfied customers who used a service repeatedly over time

build trust, satisfy customers, demonstrate customer commitment

ex: finding a new doctor

Question 10

Customer Contact

Answer 10

the level of interaction between provider and customer needed to deliver the service

high - health care/real estate
low - tax filing/auto repair

Question 11

Development of Services

Answer 11

the characteristics of services create marketing challenges and opportunities

services generally come in a bundle

Question 12

Core Service

Answer 12

the basic service experience a customer expects to receive

ex: laundry service

Question 13

Supplementary Service

Answer 13

one or more supportive services used to differentiate the service bundle from competitors’

ex: free pick up/delivery

Question 14

Promotion of Services

Answer 14

intangibility results in promotion-related challenges

personal selling can help customers visualize the service experience

Question 15

Pricing of Services

Answer 15

marketers must decide whether to bundle options and how to price bundle

often an indicator of service quality to consumers

ex: hotel/airplane seats

Question 16

Pricing Considerations/Based On?

Answer 16

a. consumer price sensitivity
b. nature of the transaction
c. costs
d. performance of specific tasks
e. time
f. level of demand

Question 17

Service Quality

Answer 17

customers’ perceptions of how well a service meets or exceeds their expectations

**marketers must determine what customers expect and meet those expectations

Question 18

Search Quality (for Goods)

Answer 18

tangible attributes (of a product) such as color, style, size, feel, or fit that can be judged before the purchase of a product

Question 19

Experience Qualities (Services)

Answer 19

Attributes, such as taste, satisfaction, or pleasure, that can be assessed only during purchase and consumption of a service

Question 20

Credence Qualities (Operations, Tax, and Legal)

Answer 20

Attributes that customers may be unable to evaluate even after purchasing and consuming a service lack knowledge or skills-

ex: surgery, legal, tax

Question 21

5 Dimensions of Service Quality

Answer 21

a. tangibles
b. reliability
c. responsiveness
d. assurance
e. empathy

Question 22

Tangibles

Answer 22

physical evidence of the service

ex: a clean shirt after dry cleaning

Question 23

Reliability

Answer 23

consistency and dependability in performing the service

ex: accurate bank statements

Question 24

Assurance

Answer 24

knowledge/competence of employees and ability to convey trust and confidence

ex: known and respected provider

Question 25

Empathy

Answer 25

caring and individual attention provided by employees

ex: nurse counseling a heart patient

Question 26

4 Factors that Affect Service Quality

Answer 26

a. analysis of customer expectations
b. service quality specifications
c. employee performance
d. management of service expectations

Question 27

Analysis of Customer Expectations

Answer 27

desired/acceptable expectations

zone of tolerance

customer contact - employeses learn what the consumers want

Question 28

Service Quality Specifications

Answer 28

an organization must set goals to ensure good service delivery

managers’ commitment to service quality is the most important thing!!

Question 29

Employee Performance

Answer 29

customer-contact employees are often the least trained and lowest-paid

should be well trained/know the goals

evaluation/compensation system very important

Question 30

Management of Service Expectations

Answer 30

must set realistic expectations about their services and deliver on promises

advertising/internal communication

word-or-mouth