Textbook Notes (367,747)
Canada (161,363)
Accounting (248)
ACCT 2220 (54)
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Chapter 8

ACCT NOTES - Chapter #8

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ACCT 2220

Differences Between Communications Strategies of Services and Goods - Implications of intangibility in service performances - Customers are involved in production - Role of Customer-contact personnel - Difficulty of evaluating many services - Need to bring supply and demand into balance Overcoming Problems of Tangibility May be difficult to communicate service benefits to customers, especially when intangible Intangibility creates 4 problems - Generality - Non-searchability - Abstractness - Mental Impalpability Facilitate Customer Involvement in Production - When customers are actively involved in service production, they need training to perform well - Show service delivery in action - Television and videos engage viewers o Dentist showing patients videos of surgical procedures before surgery - Streaming videos on Web and podcasts are new channels to reach active customers - Advertising and publicly can make customers aware of changes in service features and delivery systems in b2b and b2b contexts - Sales promotions to help change customer behavior o Office incentives to make necessary changes o Price discounts to encourage self-service on an ongoing basis. Help Customers to Evaluate Service Offerings Customers may have difficulty distinguishing one firm from another - Provide tangible clues related to service Some performance attributes lend themselves better to advertising than others - Airlines o Boast about punctuality o Do not talk overtly in advertising about safety, admission that things might go wrong make prospective travelers nervous o Use indirect approach: promote pilot expertise, mechanic’s maintenance skills, and newness of aircraft. Firm’s expertise is hidden in low-contact services - Need to illustrate equipment, procedures, and employee activities that take place backstage. Target Audience and Communications Objectives Connect to target audience - First Time Users – Advertising, pubic relations, direct marketing - Existing Users – Contact personnel and point of sale promotions - Employees - Secondary audience in front stage roles Marketing or Distribution Channel A set of independent organizations involved in the process of making a product or service available for use or consumption by the consumer or business user What is Retailing? Retailing includes all the activities involved in selling products or services directly to final consumers for their personal, non-business use. Amount of Service Self-service retailers: - Serve customers who are willing to perform their own “locate-compare- select” process to save money. Limited-service retail
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