Chapter 10 Services The Intangible Product.docx

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Western University
Management and Organizational Studies
Management and Organizational Studies 2320A/B
John White

Chapter 10 Services The Intangible Product Customer Service Specifically refers to human or mechanical activities firms undertake to help satisfy their customers needs and wants Service sector makes up more than 70 of Canadas economy the lions share of jobs and is growing far faster than goodsproducing industriesServices Marketing Differs from Product Marketing 4 Is of services are intangible inseparable from their providers inconsistent variable and cannot be held in inventory perishableIntangible Intangible A characteristic of a service it cannot be touched tasted or seen like a pure product can Inseparable Production and Consumption Services are produced and consumed at the same time Service and consumption are inseparable Inseparable A characteristic of a service it is produced and consumed at the samethat is service and consumption are inseparable Astute service marketers provide opportunities for their customers to get directly involved in the service Because the purchase risk in these scenarios can be relatively high services sometimes provide extended warranties and 100percent satisfaction guarantees Inconsistent Inconsistent A characteristic of a service its quality may vary because it is provided by humans Inventory Inventory A characteristic of a service it is perishable and cannot be stores for future use Providing Great Service The Gaps Model Service Gap Results when a service fails to meet the expectations that customers have about it should be delivered The Gaps Model is designed to encourage the systematic examination of all aspects of the service delivery process and prescribe the steps needed to develop an optimal service strategy Knowledge Gap Reflects the difference between customers expectations and firms perception of those expectations Standards Gap Pertains to the difference between the firms perception of customers expectations and the service standards it sets1
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