MKTG Chapter 12

Marketing Chapter 12 Study Guide

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Side ASide B
the result of applying human or mechanical efforts to people or objects
Four Unique Characteristics of Service
the inability of services to be touched, seen, tasted, heard or felt in the same manner that...
Search Quality
a characteristic that can be easily assessed before purchase
Experience Quality
a characteristic that can be assessed only after use
Credence Quality
a characteristic that consumers may have difficulty assessing even after purchase because they...
the inability of the production and consumption of a service to be separated. Consumers must...
the variability of the inputs and outputs of services, which causes services to tend to be...
the inability of services to be stored, warehoused, or inventoried
Four Unique Characteristics of Services
the ability to perform the service dependably, accurately, and consistently
the ability to provide prompt service
the knowledge and courtesy of employees and heir ability to convey trust
caring, individualized attention to customers
the physical evidence of the service
Gap Model
a model identifying five gaps that can cause problems in service delivery and influence customer...
Gap between what customers want and what management thinks customers want
This gap results from a lack of understanding or a misinterpretation of the customers' needs,...
Gap between what management thinks customers want and the quality specifications that management...
this gap is the result of management's inability to translate customers' needs into delivery...
Gap between the service quality specifications and the service that is actually provided
due to the inability of management and employees to do what should be done. Poorly trained...
Gap between what the company provides and what the customer is told it provides
communication gap
Service as a Process (four categories)
People ProcessingPossession ProcessingMental Stimulus ProcessingInformation Processing
People Processing
takes place when the service is directed at a customerEX: transportation, hairstyling, health...
Possession Processing
occurs when the service is directed at customers' physical possessionsEX: lawn care, car repair,...
Mental Stimulus Processing
refers to service directed at people's mindsEX: entertainment, spectator events, theater performances,...
Information Processing
services that use technology or brainpower directed at a customer's assetsEX: insurance, banking,...
Core Service
the most basic benefit the consumer is buying
Supplementary Services
a group of services that support or enhance the core service
Mass Customization
a strategy that uses technology to deliver customized services on a mass basis
Distribution Strategies for Service
must focus on such issues as convenience, number of outlets, direct versus indirect distribution,...
Key factor influencing the selection of a service provider
Promotion Strategy
Stressing tangible cluesUsing personal information sourcesCreating a strong organizational...
Price Strategy
it is important to define the unit of service consumption
Three Categories of Pricing Objectives
Revenue-oriented pricingOperations-oriented pricingPatronage-oriented pricing
Revenue-oriented pricing
maximizing the surplus of income over costs
Operations-oriented pricing
match supply and demand by varying prices
Patronage-oriented pricing
maximize the number of customers using the service
Relationship Marketing (Three Levels)
Level 1 - firm uses pricing incentives to encourage customers to continue doing business with...
Internal Marketing
treating employees as customers and developing systems and benefits that satisfy their needs
Nonprofit Organization
an organization that exists to achieve some goal other than the usual business goals of profit,...
Nonprofit Organization Marketing
the effort by nonprofit organizations to bring about mutually satisfying exchanges with target...
Three Issues Relating to Target Markets (Nonprofit)
Apathetic or strongly opposed targetsPressure to adopt undifferentiated segmentation strategiesComplementary...
Three Product-Related Distinctions (Nonprofit)
Benefit complexityBenefit strengthInvolvement
Promotional Resources (Nonprofit)
Professional volunteersSales promotion activitiesPublic service advertisingPeer to peer communications
5 Pricing Decisions (Nonprofit)
Pricing objectivesNon-financial pricesIndirect paymentSeparation between payers and usersBelow-cost...

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