Chpt. 11 Services: The Intangible Product

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Marketing Not Es For S

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service 
 
 
   Intangible customer benefits that are produced by people or machines and cannot be separated from the producer.
customer service  
 
   Specifically refers to human or mechanical activities firms undertake to help satisfy their customers' needs and wants.
intangible
 
  A characteristic of a service; it cannot be touched, tasted, or seen like a pure product can.
inseparable
 
A characteristic of a service: it is produced and consumed at the same time; that is, service and consumption are inseparable.
variability  
 
  A characteristic of a service: its quality may vary because it is provided by humans.
perishability 
 
  A characteristic of a service: it cannot be stored for use in the future.
service gap 
 
   Results when a service fails to meet the expectations that customers have about how it should be delivered.
knowledge gap  
 
A type of service gap; reflects the difference between customers' expectations and the firm's perception of those expectations.
standards gap  
 
A type of service gap; pertains to the difference between the firm's perceptions of customers' expectations and the service standards it sets.
delivery gap  
 
   A type of service gap; the difference between the firm's service standards and the actual service it provides to customers.
 communication gap 
 
  A type of service gap; refers to the difference between the actual service provided to customers and the service that the firm's promotion program promises.
service quality
 
  Customers' perceptions of how well a service meets or exceeds their expectations.
voice-of-customer (VOC) program
 
An ongoing marketing research system that collects customer inputs and integrates them into managerial decisions.
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 and what he or she will accept before going elsewhere.
empowerment 
 
In context of service delivery, means allowing employees to make decisions about how service is provided to customers.
distributive fairness  
 
   Pertains to a customer's perception of the benefits he or she received compared with the costs (inconvenience or loss) that resulted from a service failure.
procedural fairness  
 
  Refers to the customer's perception of the fairness of the process used to resolve complaints about service.