Textbook Notes (368,775)
Canada (162,159)
Business (2,391)
BU352 (267)
Chapter 10

Chapter 10 - Services The Intangible Product

2 Pages
84 Views
Unlock Document

Department
Business
Course
BU352
Professor
Dave Ashberry
Semester
Fall

Description
Chapter 10 - Services: The Intangible Product  Services = intangible offering that involves a deed, performance, or effort that can’t be physically possessed  Customer Service = refers to human/mechanical activities firms undertake to help satisfy their customers’ needs & wants  Providing good Customer Service adds value  Service sector in Canada accounts for 70% of economy o (1) because it’s generally less expensive for firms to manufacture their products in less-developed countries, thus increases the proportion of service production o (2) household maintenance activities have become quite specialized o (3) people place a high value on convenience and leisure Services Marketing Differs from Product Marketing 4 I’s of services  Intangible o Cannot be touched, tasted, or seen like a pure product can o Makes it difficult to convey the benefits o Can’t be shown directly to customers = hard to promote o Images marketers use reinforce the benefits or value the service provides  Inseparable o It is produced and consumed at the same time o Give customers opportunity to be involved directly with service o Can’t try service before purchasing & can’t return it if not satisfied o High purchase risk  Provide extended warranties or 100-percent satisfaction guarantees  Inconsistent (Variable) o Performed by humans who are more variable than machines o By the time the firm recognizes the problem, the damage has already been done; can’t recall a service o Advantage: micromanage individual customers; cater to needs (expensive) o Reduced service inconsistency through training and standardization o Replace humans with machines; downsides = technological problems  Inventory (Perishable) o Cannot be held in inventory or stored for use in the future o Excess demand = turning customers away o Excess supply = less desirable expense-to-revenue ratios Providing Great Service: The Gaps Model  Customers have certain expectations of how service should be delivered; failed service deliver = service gap  Knowledge Gap o Difference between actual customer expectations & perceived customer expectations by the firm o Accomplished through customer research & communication with managers & employees to close the gap o Understand customer expectations and matching it with service– vary according to service & situation o Evaluating Service Quality – how well company meets or exceeds expectation  Overall service quality: reliability, responsiveness, assurance, empathy, tangibles o Marketing research = understanding the customer tolerance; Voice of Customer programs (ex) o Voice-of-customer program: an ongoing marketing research system that collects customer insights and intelligence to influence and drive business decisions o Zone of tolerance: the area between customers’ expectations regarding their desired service and the minimum level of acceptable service – that is, the difference between what the customer really wants
More Less

Related notes for BU352

Log In


OR

Join OneClass

Access over 10 million pages of study
documents for 1.3 million courses.

Sign up

Join to view


OR

By registering, I agree to the Terms and Privacy Policies
Already have an account?
Just a few more details

So we can recommend you notes for your school.

Reset Password

Please enter below the email address you registered with and we will send you a link to reset your password.

Add your courses

Get notes from the top students in your class.


Submit