test 1 Flashcards

Question

segmenting based on service levels

Answer 1

level of performance firm plans to offer on each attribute (easily quantifiable attributes ar easier to undertsand, qualitative attributes are ambiguous and subject to individual interpretation establishing service levels - can segment custs according to willingness to give up some level of service for a lower price (price sensitive custs look for inexpensive service with low perf on key attrbutes)

Answer 2

1. fullly focused limited range of services to narrow and specific market ops: developing recognized expertise in a well defined niche may provide protection against comp, allows firms to charge premium prices risks: market small, D for servic can be displaced by comp from alt products, purchasers could have economic downturn 2. market focused narrow market segment with wide range of services, make sure firms have operational capability to deliver each service deselected, need to understand customer purchasing practices and preferences select a market and provide all services EX. STUDENTS, SENIORS, NEWBORN BABIES, SCHOOL uniforms 3. service focused narrow range of services to broad market as new segments are added firm needs to develop knowledge and skills in serving each segment ex. bank lawyer plumber taxi uber limo 4. unfocused broad markets with wide range of services many service providers fail into this category danger of becoming a jack of all trades and master

Answer 3

1. must establish position for firm or product in minds of target consumers 2. position should provide one simple consistent message 3. position must set firm/product apart from comp 4. a company cannot be all things to all ppl it must focus its efforts

Answer 4

stand for in minds of cons who do we serve now and who in future value prop differ from comp perceived by target segments what changes to strengthen positioning

Answer 5

core product (deliver principle benefits and solutions) supplementary services (facilitate and enhance core product) delivery processes (how care and supplementary service elements are being delivered to the customer)

Answer 6

custs understand service and value prop (what it comprises, how its creates, what value they receive) also help employees understand them

Answer 7

custs understand service and value prop (what it comprises, how its creates, what value they receive) also help employees understand them

Answer 8

information: customers often require info about how to obtain and use a g/s order taking: custs need to know what is available and may want to secure commmitement to delivery, process should be fast and smooth billing: bills should be clear accurate and intelligble payment: custs may pay faster and more cheerfully if you make transactions simple and convenient for them

Answer 9

consultation: value can be added to g/s by offering advice and consultation tailored to each customers needs and sit hospitality: customers who invest time and effort in visiting a business and using its services deserve to be treated as welcome guests safekeeping: customers prefer not to worry about looking after the personal possessions that they bring with them to a service site expections: custs appreciate some flexibility when they make special requests and expect responsiveness when things don’t go according to plan

Answer 10

branded house : company applies brand name to multiple offerings in unrelated fields (uni) sub brands: corporate or master brand is main reference point but each product has own name endorsed brands: product brand dominates but corporate name is still featured house of brands: each of the brands owned by the corporation is promoted under its own name

Answer 11

1. style changes (visible changes in service design or scripts) 2. service improvements (modest changes in the performance of current products) 3. supplementary service innovations (addition of new or improved facilitating or enhancing elements) 4. process line extensions (alt delivery procedures) 5. product line extensions (additions to current product lines) 6. major process innovations (using new processes to deliver existing products with added benefits) 7. major service innovations (new core products for previously underlined markets)

Answer 12

core product is of secondary importance, ability to maintain quality of total service offering is key, accompanying marketing support activities are vital, market knowledge is of utmost importance

Answer 13

most service orgs offer a line of service offerings, bundles, specific experiences part of overall service branding these individually, typically using sub brands, helps to differentiate one bundle of output from another branded service experiences ar easier to market and sell

Answer 14

branding is used to differentiate services but also to clearly differentiate service levels

Answer 15

a service firms presented brand is more effective in building brand awareness customers service experience with the brand is more important in building brand equity

Answer 16

style changes: visible changes in service design or scripts service improvements: modest changes in the performance of current products supplementary service innovations: additions of new or improved facilitating or enhancing elements process line extensions: alternative delivery procedures product line extensions: additions to current product lines major process innovations: using new processes to deliver existing products with added benefits major service innovations: new core products for previously undefined markets

Answer 17

1. user centered, from the customers perspective 2. co creative, involving all key stakeholders 3. sequential, following the customer journey 4. evident, making intangible aspects tangible 5. hositic, considering the entire service experience using all service experience using all five senses

Answer 18

good fit between new product and firms image resources, advantage vs competition in meetings customers needs, strong suppport from firm during/after launch, firm understand customer purchase decision behaviour

Answer 19

organizational factors: strong interfunctional cooperation and coordination, internal marketing to educate staff on new product and its competition, employees understand importance of new services to firm’ market research factors: scientific studies conducted early in development process product concept well defined before undertaking field studies

Answer 20

objectives, idea generation, concept screen, concept development, concept eval, final service new services: low entry barrier important (low manu cost, no distribution, little market testing) delivery at focal point of service

Answer 21

customers visit service site: convenience of service factory locations and op schedules important when customer must be physically repent (people process) service transaction conducted remotely : achieved with help of logistic and telecoms

Answer 22

a) information and promotion flow b) negotiation flow c) product flow

Answer 23

cust want online service bc convienvce, ease of search, broad selection, better prices, 24/7 service *

Answer 24

complex high risk = ppl rely on personal channels gretaer confidence and knowledge = impersonal and self service tech savvy cust = personal channels convenieve is a key drier of choice

Answer 25

service that is delivered throwing multiple channels requires a seamless and consistent user exp new channels are prone to inconsistent and disjointed need effective pricing

Answer 26

pop size and chars pedestrain and vehicular traffic and its chars convinences of access comp in this area nature of nearby businesses avilabiloy of labour availability of site locations, rental costs and contractual conditions and regs

Answer 27

cost, productivity and access to labor are key determinants to locating service facility locational contraints: operational reqs, geographic factors, need for economies of scale

Answer 28

challenges for original supplier: act as guardian for overall process, ensure each elements offered by intermediaries fits overall service concept franchising expand delivery of service concept without high level of monetary investment franchisor provides training equip and support marketing, franchisee invest time and finance ⅓ of systems fail in first four years disadv of franchising: some loss of control, effective quality control is important but difficult, conflict between franchisees alt: license another supplier to act on og suppliers behalf to deliver core product

Answer 29

a. distances involved and existence of multiple time zones b. multiculturalism c. diffs in laws and tax rates of various states or provinces and those of the respective federal governments

Answer 30

1. market drivers (common customer needs across many countries, global suits who demand consistent service, availability of intl channels) 2. compeition drivers (presence of comp from diff countries, interdep of countries, transnational policies of comp) 3. technology drivers (enhanced performance and capabilities in tech stuff, miniaturization of equipment,ent, digitization of voice video and text) 4. cost drivers (econs of scale, sourcing efficiencies, improved perf and lower operating costs for telecoms and transport) 5. govt drivers (favourable trade, compatible technical standards, common marketing regs)

Answer 31

seek profit / cover costs (rev/prodit based) build demand - demand maximization, full capacity utilization- build a user base -stimulatee trial and adoption of new services, build market share/large user base (patronage and user based objectives)

Answer 32

cost to firm competitor pricing value to customer

Answer 33

-set prices relative to financial costs, activity based costing, pricing implications of cost analysis -set price relative to financial costs (problem is defining costs) -traditional costing appreoach, emphizing expense cats (arbitrary overheads allocation), may result in reducing value generated for customers management systems (link resource expenses to variety and complexity of g/s produced, yields accurate cost info) value exchange wont take place unless cust sees positive net value i transaction net value = perceived benefits to cust (gross value) - all perceived outlays (money, time, mental/physical effort)

Answer 34

understand net value: customers weigh the perceived benefit sof the service against the perceived costs they will incur -value is a low price, value is wtv i want in a product, value is the quality i get for the price i pay, value is what i get for what you give - managing the perception of value: effective comms and even personal explanations are needed to help custs understand the value they receive -reduce related monetary costs (cut time spent searching for and purchasing services) -reduce non monetary costs (time, physical, psychological, sensory) -service user can occur costs during any of the three stages of the service consumption model : search costs, purchase and service encounter costs, post purchase costs

Answer 35

- non price related costs of using competing alts are high - personal rels matter - switching costs are high - time and location specifically reduces choice - managers should not only look at comps prices dollar for dollar but should examine all related financial and non financial costs

Answer 36

rev management is price customization … charge diff value segments diff prices for same product based on price sensitivity most effective when… high fixed capacity, high fixed cost structure, perishable inventory, variable and uncertain demand, varying customer price sensitiviu uses math models to examine data and info to determine …. what price to charge within each price bucket, how many service units to allocate to each bucket

Answer 37

rate fences deter custs WTP more from trading down to lower prices (minimize cust surplus) physical: basic product amenities service level other physical characteristics

Answer 38

NON PHSYCIAAL transaction characteristics consumption characteristics buyer characteristics

Answer 39

- customers are vulnerable when service is hard to eval as they assum higher price means higher quality - many services have complex pricing schedules (hard to understand, difficult to calc full costs in advance of service) - quoted prices not the only prices (hidden charges, many kinds of fees) - too many rules and regulations (customers feel constrained, exploited), customers face unfair fines and penalties

Answer 40

- design clear, logical and fair price schedules and fences - use high published prices and present fences as ops for discounts - communicate cons benefits of rev mgmt - use bundling to hide discounts - take care of loyal custs - use service recovery to compensate for overbooking

Answer 41

how much to charge? what basis for pricing what should collect payment where should payment be made when should payment be madee how should payment be made how to commmunicate prices ?/ = relate price to that of competing products, use salespeople, good signage, ensure price is accurate and intelligible

Answer 42

hard to calc costs, variability of inputs and outputs, importance of time factor, custs find service pricing difficult to understand

Answer 43

WHO is our target audience =budget decisions and comms program eval WHAT do we need to communicate and achieve =budget decisions and comms program eval HOW should we communicate this =ethics and consumer privacy WHEN do comms need to take place =corporate design =IMCs

Answer 44

prospects (employ trad comms mix bc prospects are not known in advance users (more cost effective channels) employees

Answer 45

1. build service brand and positioning and its service products against comp 2. persuading target that their service product offers a better solution 3. attract new users and maintain contact with existing custs

Answer 46

1. create memorable images of specific companies and their brands 2. build awareness/interest 3. compare service favourably with comp offerings 4. build preference by comm strengths n benefits 5. reposition service relative to comp 6. reduce uncertainty/risk by providing useful info and advice

Answer 47

D mgmt strats: reduce usage during peak D periods, stimulating D during off peak period

Answer 48

- central to service delivery in high contrast services (make service tangible and personalized), advertise employees at work to help custs understand nature of service encounter, even take initiate to provide discounts, upgrades, etc - show custs work behind stage - adv must be ralistic - messsages set cust expectations

Answer 49

service is a performance not an object target employees as a second audience provide tangible clues capitalize on WOM ensure continuity through symbols, spokesperson, trademarks etc promote reasonable expectations develop concrete image

Answer 50

REASSURANCE, ENCOURAGE TRIAL, TEACH HOW TO USE, CREATE D, RECOGNIZE CUST/EMPL

Answer 51

comm quality add value facilitate cust involvment promote contribution of service personnel

Answer 52

overcome intangibility: may be difficult to comms service benefits to customers, especially when intangible

Answer 53

1. generality (items that comprise a class of objects, persons, or events) 2. non searchability 3. abstractness (non one to one correspondence with physical objects) 4. mental impalpability (custs find it hard to grasp benefits of complex, multidimensional new offerings)

Answer 54

A: service consumption episodes G: system documentation for objective claims, service perf episodes for subjective claims NS: consumption documentation reputation IMP: service process episodes, case history episodes, service consumption episodes use tangible cues in adv use metaphors:highlight how service benefits are provided —> they communicate value props more dramatically and emphasize key points of difference

Answer 55

focused on pushing products to a specific audience, goal is to bring what you offer to customers in your marketing. social media channels are considered to be push sources bc they’re great for launching new or nice products

Answer 56

draw cons to product. create loyal custs by providing marketing that showcases what they’re looking for

Answer 57

service outlets, frontline mployees, self service delivery points, websites social media pages and apps, corporate design

Answer 58

send personalized messages to highly targeted microsegments need details on customers and prospects permission marketing: persuade customers to volunteer their attention (build strong rel with cust)

Answer 59

comms that come with an incentive motiate customers to use a specific service sooner in greater vol with each purchase can generate attention and put firm in favourable light adv: reduce risk for consumer, diff segments diff prices, add excitement sampling (free set time) coupons short term discounts sign up rebates gift premiums prize promotions

Answer 60

personal selling: interpersonal encounters educate customers and promote preferences for particular brand or product common in b2b and infrequently purchased services PR: efforts to stimulate positive interest in an org and its products through third parties

Answer 61

the web is used for a variety of comms tasks -creating consumer awareness and interest -providing info and consultation -allowing two way communication with customers through email and chat rooms -encouraging product trial allowing customers to place orders -measuring effectiveness of advertising or promotional campaigns innovative companies look for ways look for ways to improve the appeal and usefulness of their sites

Answer 62

placing advertising banners and buttons on portals such as yahoo, netscape and other firms websites draw online traffic to the advertisers own site web sites often include adv of other related but non competing services

Answer 63

reverse broadcast network : search engines let advertisers know exactly what consumer wants through their keyword search can target relèvent messages directly to desired consumers serveral advertising options - pay for targeted placement of ads to relevant keyword searches - sponsor a short text message with a click through link - buy top rankings in the display of search results

Answer 64

tech has created a gray area between the two direct mail and email can be personalized electronic recommendation agents can also personalize comms with advances of on demand tech, consumer are increasingly empowered to decide how and when they like to be reaches

Answer 65

service outlets: can be through banners posters signage etc frontline employees: comms from frontline staff can be for the core service or supplementary elements, new customers in particular need help from service personnel self service delivery points : atms , vending machines and websites are examples

Answer 66

recommendations from other customers viewed as more credible strategies to stimulate WOM : having satisfied customers providing comments, using other purchasers and knowledgeable individs as reference, creating exciting promotions that get get people talking, offering promotions that encourage customers to persuade their friend to purchase, developing referral incentive schemes recommendations from other customers viewed as more credible

Answer 67

blogs —> comms about customer experiences influence opinions of brands and products some firm have started to monitor blogs as form of market research and feedback twitter—> becoming increasingly popular l fastest growing social networking service media coverage—> compares,contrats service offerings from competing orgs, advice on best buys

Answer 68

dont promote during heavy usage periods math timing to perceptions and behaviours the firm wants to manage timing of comms is managed with help of media plan flowchart

Answer 69

1. objective and task method - define the communications objectives along the services marketing comms funnel - determining the tasks needed to achieve these objectives estimating the costs of the program 2. empirical research method - run a series of tests or field experiments with different communications budget to determine the optimum level of comms spent 3. all you can afford 4. historical data (5% of last years sales, 2% more than last year)

Answer 70

- advertising selling and sales promotion all lend themselves easily to misuse - comms message often include promises about benefits and quality of service delivery. customers are sometimes disappointed - why were their expectations not met? = poor internal comms betweeen ops and marketing personnel concerning level of service performance, over promise to get salles, deceptive promotions - unwanted intrusion by aggressive marketers into ppls personal lives

Answer 71

useful in competitive markets to stand out from crowd and be instantly recognizable in diff locations use colors use names as central element use trademarked symbol rather than name create tangible recognizable symbols to connect with corporate brand names

Answer 72

mapping and designing service proces (flow chart, blueprint, process design considerations) manage cust participation in service process (custs as co creators, self service techs, managing cust reluctance to change) redesign service processes (indicators for redesign need, objectives, how to)

Answer 73

displaying nature and sequence of the different steps involved when a customer flows through the service process

Answer 74

specifies in detail how a service process is constructed (service blueprints map customer employee and service system interactions, they should the full cust journey from service initiation to final delivery of desired benefit) develop a blueprint : identify key activities and delivering service, define big picture before drilling down to obtain a higher level of detail

Answer 75

distinguish frontstage and backstage clarify interactions between custs and staff identify fail points, take preventative measures, prepare ocntingency pinpoint stages where cust is waiting

Answer 76

define standards for front stage activities specify physical evidence identify main customer actions line of interaction (custs and front stage personnel) frontstage actions by customer contact personnel line of visibility (btwn front and backstage) backstage actions by customer contact personnel support processes involving other service personnel support processes involving IT

Answer 77

introductory scene delivery of core product drama concludes; remaining actions move quickly and smoothly, no surprises

Answer 78

improve reliability of process identify fail points, analyse reasons reveals ops for failure proofing, find fail safe methods for employees and custs, poka yokes ensure service staff do things correct poka yoke = lean six sigma tool = strats to prevent future mistakes cust poka yokes prep cust for the encounter, understanding their roles, selecting correct service

Answer 79

service attributes (responsive, reliable, competence, comm, credible, etc) service process indicators (processing time, base of cust sat) service process standards (define quality goals) performance targets (define departmental service quality goals)

Answer 80

start strong build an improving trend create a peak get nad experiences over with early segment pleasure combine pain finish strong

Answer 81

brand new processes to stay relèvent!! revitalize outdated process changes in target market D of target market changes in external env make existing practices obsolete and require redesign of underlying processes/tech

Answer 82

extensive info exhcnahed data not useful high ratio of checking or control activities to value adding activities inc expection processing customer complaints about inconvenient unnecessary procedures deterioration of internal processes bureacrazy market changes, segment changes, tech

Answer 83

reduced number of service failures reduce cycle time from cust initiation of a service process to it completion enhanced productivity inc cust sat

Answer 84

examining service blueprint with key stakeholders eliminating non value adding steps addressing bottlenecks in the process shifting to self service

Answer 85

inc productivity and quality, lower costs, enhance tech reputation, differentiates company)

Answer 86

they influence productivity and quality of service process/output , recruit custs like employees , cooperate with each other 3 level low: employees/systs do all the work, standardized service ofte medium: custs help firm, provide needed info and instructions, make some personal effort, share physical possessions high: cust works actively with provider to co product, cannot be created without cust , cust can jeopardize quality of service outcome

Answer 87

convenience, time savings, fast service, flexible location/time greater control over service delivery, more info, higher perception of customization lower prices/fees

Answer 88

SSTs should be… conveniently located, obtain detailed information and complete fast transactions, works well SSTs should not…. fail, poorly designed/difficult to use, make mistakes

Answer 89

does it work reliably, is it better than interpersonal alts, if it fails what systems are in place to recover

Answer 90

develop customer trust understand cust habi pre test test new procedures and equipment publicize benefits of changes teach custs and promote trial monitor performance and continue to seek improvements

Answer 91

simple and repetitive tasks low in emotional/social and cognitive/analytical complexity services that require high cognitive and analytical skills can be delivered effectively by service robots high cognitive and emotional skills with inc be delivered by human/robot teams

Answer 92

behaves in thoughtless or abusive fashion, causing problems for fir, employees, or other custs disrupt processes, affect service quality, spoil experience of other custs what to do: avoid attracting them, preventative measures, control beh quickly, legal action consequences: staff negatively affect, productivity and quality suffer customers: spoil consumption experience organization : unmotivated employees m direct financial costs of restoring damaged property legal fees and paying fraudulent claims six types of jaycustomers : thief, rule breaker, belligerent, family feeder, vandal, deadbeat

test 1 Flashcards

(116 cards)