Topic 6: The Intangible Product

Question 1

Factors differentiating services from goods.

Answer 1

• Intangible.
• Heterogeneous.
• Perishable.
• Inseparable.

Question 2

Intangible Product

Answer 2

• Cannot be touched, tasted or seen like a product.
• Requires the use of cues to aid customers.
• Atmosphere is important to convey value.
• Images are used to convery benefit of value.

Question 3

Evaluating Service Quality

Answer 3

• Reliability.
• Responsiveness.
• Assurance.
• Empathy.
• Tangibles.

Question 4

What is a voice-of-customer (VOC) program and zone of tolerance.

Answer 4

VOC collects customer inputs and integrates them into managerial decisions.

Zone of tolerance is the area between customer expectations and desired service / minimum acceptable service.

Question 5

Cummunications gap

Answer 5

Difference between the actual service provided to customers and the service the firms promotional product provides.

Question 6

What contributes to service recovery?

Answer 6

• Listening to the customer.
• Resolving problems quickly.
• Finding a fair solution.

Question 7

Summarise:

Reliability

Responsivesness

Assurance

For the intangible products:

Answer 7

• Relliability; refers to whether the service provider consistently provides an expected level of service.
• Responsiveness; means that the service provider ntoes the consumers desires and responds to them.
• Assurance; reflects the service provider’s own confidence in its abilities.
• Communications gap refers to the difference between the actual service provided to customers and the services that the firm’s promotional program promises.