What are services?

Intangible products that are exchanged directly from the producer to the customer.

What are the 4 ways services differ from products? (I.I.P.V.)

Intangibility, Inseparability, Perishability, Variability.

Intangibility

means customers cant see, touch, or smell good service.

Inseperability

means it is impossible to separate the production of a service from the consumption of that service (ex: a haircut is produced when a client arrives.)

Perishability

makes it impossible to store for later sale or consumption.

Variability

means even the same service performed by the same individual for the same customer can vary.

How do consumers judge service quality?

-Social Elements-Physical Elements-Servicescape-Search Qualities-Experience Qualities

Servicescape

The actual physical facility where the service is performed, delivered, and consumed. Quality cues increase consumer beliefs they are receiving a high-quality service.Servicespace atmospherics can increase service quality

Service Encounter

The actual interaction btwn the customer and the service provider.

Search Qualities

Product characteristics that the consumer can examine prior to purchase.

What is the Gap Analysis model?

A marketing research method that measures the difference between a customer's expectations of a service quality and what actually occurred.

What are the 5 service gaps?

Gap 1 - poor understanding of customer preferencesGap 2 - poor management standards Gap 3 - current performance is sub-standardGap 4 - unrealistic promises Gap 5 - unrealistic consumer expectations

Experience qualities

product characteristics that customers can only judge during or after consumption. ex: the taste of a latte

Critical Incident Technique

A method for measuring service quality where marketers use customer complaints to identify critical incidents and improve their service act. (ex: specific face-to-face contact btwn consumer and service provider that lead to dissatisfaction)

SERVQUAL

A multi-item survey that measures customers perceptions of service quality through it's 5 dimensions.

What are the SERVQUAL 5 dimensions?

1 - Tangibles2 - Reliability3 - Responsiveness4 - Assurance5 - Empathy

Core Service

The basic benefit of having a service performed. ex: basketball game

Supplementary (Augmented) Service

The core service PLUS additional services provided to enhance value. ex: valet parking at the basketball game.

Four categories of service processes

1 - people2 - possessions3 - mental stimulus4 - information

Disintermediation

Using self-service technologies (ATM) to eliminate the interaction between customers and salespeople. The goal is to minimize negative service, reduce service variability, and reduce costs.

Credence Qualities

Product characteristics that are difficult to evaluate even after they have been experienced.

Capacity Management

The process by which organizations adjust their offerings in an attempt to match demand.