MARK1012 Study Guide - Final Guide: Customer Service, Intangibility, Competitive Service
Document Summary
Services: the intangible product: customer service specifically refers to human or mechanical activities that firms undertake to help satisf(cid:455) (cid:272)usto(cid:373)e(cid:396)s(cid:859) (cid:374)eeds a(cid:374)d (cid:449)a(cid:374)ts, by providing good customer service, firms add value to their products. Illustrates continuum from pure service to pure product most offerings lie somewhere in the middle. Intangible: services cannot be touched, tasted or seen like a pure product can. Intangibility can be highly challenging to marketers as it makes it difficult to convey benefits of services marketers must use images which reinforce benefit/value that service provides. If firms are more realistic about services they can provide and at same time manage customer expectations effectively, they can generally close this gap. Improves service providers efficiency and reduces servicing costs. Service quality and customer satisfaction and loyalty: good service = satisfied and loyal customers. If firm not only minimises but eliminates any service gaps customers more likely to show significant loyalty to that firm.
