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Services marketing final exam notes.docx

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University of Ottawa

SERVICES MARKETING FINAL EXAM NOTESGAP 1 NOT KNOWING WHAT THE CUSTOMERS EXPECTProvider Gap 1 is the difference between customer expectations of service and company understanding of those expectations A primary cause for not meeting customer expectations is that the firm lacks accurate understanding of what those expectations are Key Factors Responsible for Gap 11An inadequate marketing research orientation is one of the critical factors When management or empowered employees do not acquire accurate information about customers expectations Provider Gap 1 is large 2Lack of upward communication Frontline employees often know a great deal about customers if management is not in contact with frontline employees and does not understand what they know the gap widens3Lack of company strategies to retain customers and strengthen relationships with them an approach called relationship marketing When companies focus too much on attracting new customers they may fail to understand the changing needs and expectations of their current customers 4Lack of service recovery It is critical for a company to understand the importance of service recovery why people complain what they expect when they complain and how to develop effective service recovery strategies for dealing with inevitable service failuresClosing Gap 1 By Listening to Customers Through ResearchThe first step in designing services research is the most critical defining the problem and research objectives Services research must continually track service performance because performance is subject to human variability and heterogeneity A second distinction in services research is the need to consider and monitor the gap between expectations and perceptions A services research program can be defined as the composite of all research needed to address the objectives and execute an overall measurement strategy Criteria for effective services research programs include qualitative and quantitative research expectations and perceptions balances cost and value of research includes statistical validity measures important of attributes occurs with appropriate frequency and measures behaviourComplaint Solicitation Seek complaints as communications about what can be done to improve their service and their service employees To be effective complaint solicitation requires rigorous recording of numbers and types of complaints through many channels and then working to eliminate the most frequent problemsCritical Incident Technique CIT A qualitative interview procedure in which customers are asked to provide verbatim stories about satisfying and dissatisfying encounters they have experienced This information is vivid provides concrete information about the company useful when the company is new and little other information exists and helpful to distinguish views from different culturesRequirements Research Involves identifying what customers expect in a service An example includes structured brainstorming where a facilitator leads a group of customers through a series of exercises and has the customer describe the ideal service providerRelationship SurveysSERVQUAL Surveys Relationships surveys pose questions about all elements in the customers relationship with the company Useful for comparing oneself against competitors The SERVQUAL scale involves a survey containing 21 service attributes grouped into 5 service quality dimensions The survey sometimes asks customers to provide 2 different ratings what level of service they expect from excellent companies and what they perceived from a specific company Useful to determine gap score assess among the 5 quality dimensions track customer expectations and perceptions compare against competitors identify customer segments and assess internal service qualityTrailer Calls or Posttransaction Survey Purpose is to capture information about the key service encounters with the customer Here customers are asked a short list of questions immediately after a particular transaction A benefit is that customers often think the call is a follow up to make sure they are satisfiedService Expectation Meetings and Reviews Business to business situations where meetings with clients are held to make sure expectations are being fulfilledProcess Checkpoint Evaluations The smart service provider defines a process for delivering the services and then structures the feedback around the process checking in at frequent points to ensure that the clients expectations are being metMarketOriented Ethnography Approach which allows researchers to observe consumption behaviour in natural settings Mystery Shopping Companies hire outside research organizations to send people into service establishments and experience the service as if they were customersCustomer Panels Ongoing groups of customers assembled to provide attitudes and perceptions about a service over time They offer a company regular and timely customer information virtually a pulse on the marketLost Customer Research Deliberately seeking customer who have dropped the companys service to inquire about their reasons for leaving Identifies failure points and common problemsClosing Gap 1 By Improving Upward CommunicationExecutive Visits to CustomersExecutive or Management Listening to CustomersResearch on Intermediate CustomersResearch on Internal Customers Employees
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