MKT 3660 Study Guide - Final Guide: Service Recovery, Services Marketing, Customer Satisfaction
22 May 2018
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Services Marketing: Final Exam Review Chapters 7-13
Chapter 7:
1. Service recovery- what is it?
a. The actions taken by an organization in response to a service
failure to improve the situation for the customer
2. Know what service failure is
a. A service performance that falls below a customer’s expectation in
such a way that leads to customer dissatisfaction
3. Know what the service recovery paradox is
a. Firms doing so well in their service recovery that customers end up
more satisfied than they would have been if the firm never failed in
the first place
4. Know how people who complain are categorized
a. Passives: least likely to take any action
b. Voicers: actively complain to service provider by less likely to spread
negative word of mouth
c. Irates: more likely to engage in negative word of mouth
communication with friends and family, switch provider
d. Activists: above average propensity to complain on all dimensions; tell
provider, family/friends, third parties, and spread their opinion
Chapter 8:
1. Know the important considerations for innovating and developing a new
service
a. Involve customers and employees
b. Employ service design thinking and techniques
2. Know who should be involved in the new service development process
a. Employees: are the service or at least they perform or deliver the
service. Involved in choosing which new services to develop and how
these services should be designed and implemented
b. Customers: can help design the service concept and delivery process
3. Know what a major innovation looks like
4. Know the differences between a service line extension and service
improvement
a. Service line extensions represents augmentations of existing service
line (ex: restaurant adding new menu items)
b. Service improvement: changes in features in services already offered
(ex: providing extra service hours)
5. The first step of the new service development process
a. Identifying growth opportunities
6. Know what business analysis is
a. Estimation of its economic feasibility and potential profit implications.
b. Demand analysis, revenue projections, cost analyses and operational
feasibility are assessed at this stage
Chapter 9:
1. Know the first step in delivering high service quality
a. Understanding customer requirements
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