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Chapter 10

Marketing Chapter 10 Notes.docx

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Ryerson University
MKT 100
Laila Rohani

Marketing: MKT100 Chapter 10 Notes Ch. 10: Services: The Intangible Product Customer Service • Specifically refers to human or mechanical activities firms undertake to help satisfy their customers’ needs and wants Services Marketing Differs from Product Marketing • Intangible is a characteristic of a service that cannot be touched, tasted, or seen like a pure product can • Services are difficult to promote because they can’t be shown directly to potential customers • Services are inseparable, meaning it is produced and consumed at the same time – that is, service and consumption are inseparable • The more humans that are needed to provide a service, the more likely that the service’s quality will be inconsistent or variable, meaning quality may vary because it is provided by humans • Services are perishable because they cannot be held in inventory or stored for use in the future Providing Great Service: The Gaps Model • A service gap results when a service fails to meet the expectations that customers have about how it should be delivered • The knowledge gap reflects the difference between customers’ expectations and the firm’s perception of those expectations • The standards gap pertains to the difference between the firm’s perception of customers’ expectations and the service standards it sets • The delivery gap is the difference between the firm’s service standards and the actual service it provides to customers • The communications gap refers to the difference between the actual service provided to customers and the service that the firm’s promotional program promises The Knowledge Gap: Knowing What Customers Want • Consumers’ expectations are based on their knowledge and experiences • Service quality is customers’ perceptions of how well a service meets or exceeds their expectations • Customers have 5 distinct service dimensions to determine overall service quality: o Reliability – the ability to perform the service dependently and accurately o Responsiveness – the willingness to help customers and provide prompt service o Assurance – the knowledge of and courtesy by employees and their ability to convey trust and confidence o Empathy – the caring, individualized attention provided to customers o Tangibles – the appearance of physical facilities, equipment, personnel, and communication materials • The voice-of-customer (VOC) program is an ongoing marketing research system that collects customer insights and intell
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