What are the reasons for this dependence and the growth of service-oriented economies in developed countries?
1. It is generally less expensive for firms to manufacture their products in less developed countries2. People place a high value on convenience and leisure 3. People are demanding more specialized services
The proportion of service production to goods production in the United States, and other similar economies, has steadily _(a)_ over time
Increased
What are the four marketing elements that distinguish services from products?
1. Intangible 2. Inseparable 3. Heterogeneous 4. Perishable
What is the most fundamental difference between a product and a service?
Services are intangible
Service and consumption are?
Inseparable
What are the four service gaps?
1. Knowledge gap 2. Standards gap 3. Delivery gap 4. Communication gap
How can firms reduce the knowledge gap?
They must understand customer's expectations
Customers' expectations are based on their? _____and _____
knowledge and experiences
Expectations vary according to the type of __(a)__and depending on the __(b)___
Service and situation
What are the five distinct service dimensions used to determine overall service quality?
1. Reliability 2. Responsiveness 3. Assurance 4. Empathy 5. Tangibles
What is an important marketing metric to evaluate how well firms perform on the five service quality dimensions?
The zone of tolerance
Empowerment becomes more important when the service is ______
More specialized
How can the communications gap be reduced?
By managing customer expectations and by promising only what you can deliver, or possibly even a little less
Expectations are typically created through____,_____, or ______
promotions, advertising, or personal selling
Effective service recovery efforts can significantly increase:
Customer satisfaction Purchase intentions Positive word of mouth
Post recovery satisfaction levels usually fall ___than their satisfaction level prior to the service failure
Lower
What are three ways the delivery gap can be closed?
Empowering service providers support and incentives for employeesUse Technology
What can companies do to recover from a service failure?
1. listening to the customers and involving them in the service recovery2. providing a fair solution 3. resolving the problem quickly
Why is service recovery so important to companies?
It provides the firm with a unique opportunity to demonstrate its customer commitment