MKTG 150 Chapter Notes - Chapter 6: Switching Barriers
Document Summary
Harder to calculate financial costs of creating a service process. Importance of time factor same service may have more value based on time. (passport office, front seats at concert, emergency) Customers find service pricing difficult to understand, risky and sometimes even unethical. Set prices relative to financial costs (problem: defining costs) Cut time spent searching for, purchasing and using service. Sensory costs (unpleasant sights, sounds, feel, tastes, smells) Customers weigh the perceived benefits of the service against the perceived costs they will incur. Value is whatever i want in a product. Value is the quality i get for the price i pay. Value is what i get for what i give. Effective communications and even personal explanations are needed to help customers understand the value they receive. Keys to reducing non-monetary & monetary costs (& risk) Reduce time costs of service at each stage. Minimize unwanted psychological costs of service e. g. eliminate/redesign unpleasant/ inconvenient procedures.
