BSB126 Chapter Notes - Chapter 10: Service Recovery, Micromarketing, Customer Service
Chapter 10: Services: The Intangible Product
- Service – any intangible offering that involves a deed, performance, or effort that cannot be
physically possessed
- Customer service – human/mechanical activities that firms undertake to help satisfy their
customers’ needs and wants
- People are demanding specialised services
- Services are intangible, inseparable, heterogenous, and perishable
oIntangible
Cannot be touched, tasted, or seen
Difficult to convey benefits
Providers offer cues to help customers experience and perceive services
positively
Difficult to promote – employ symbols and images
Images must reinforce benefit/value provided
oInseparable production and consumption
Services are produced and consumed at the same time
Interaction with service provider may impact perception of outcome
Customers can’t ‘try before you buy’ and can’t return them
oHeterogenous
Variability in service quality
Micromarketing can customise a service to meet customer needs
Effect can be minimised through the use of machines
oPerishable
Cannot be stored for future use
Demand and supply – the close the match, the smaller the risk of issue
- Service gaps
oOccur when delivery of a service fails to meet expectations
oKnowledge gap: understanding customer expectations
Reflects the difference between customers’ expectations and the firm’s
perception of them
Closed by determining what customers really want
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Document Summary
Service any intangible offering that involves a deed, performance, or effort that cannot be physically possessed. Customer service human/mechanical activities that firms undertake to help satisfy their customers" needs and wants. Services are intangible, inseparable, heterogenous, and perishable: intangible. Providers offer cues to help customers experience and perceive services positively. Difficult to promote employ symbols and images. Images must reinforce benefit/value provided: inseparable production and consumption. Services are produced and consumed at the same time. Interaction with service provider may impact perception of outcome. Customers can"t try before you buy" and can"t return them: heterogenous. Micromarketing can customise a service to meet customer needs. Effect can be minimised through the use of machines: perishable. Demand and supply the close the match, the smaller the risk of issue. Service gaps: occur when delivery of a service fails to meet expectations, knowledge gap: understanding customer expectations. Reflects the difference between customers" expectations and the firm"s perception of them.
