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Marketing of Services

by: Malvina White Jr.

Marketing of Services IBM 316

Malvina White Jr.
CSU Pomona
GPA 3.92

Juanita Roxas

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About this Document

Juanita Roxas
Class Notes
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Popular in International Business

This 5 page Class Notes was uploaded by Malvina White Jr. on Saturday October 3, 2015. The Class Notes belongs to IBM 316 at California State Polytechnic University taught by Juanita Roxas in Fall. Since its upload, it has received 24 views. For similar materials see /class/218252/ibm-316-california-state-polytechnic-university in International Business at California State Polytechnic University.

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Popular in International Business


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Date Created: 10/03/15
What are the major differences between goods amp services GoodTangible nonperishablestandardized ServiceIntangible perishableHeterogeneous Ability to Separate from Products exhair stylist What trends have contributed to increasing importance of services Be able to Identify the trend if a situation is given 1929 55 of US working population in Service Sector 54 of gross national product was generated by services in 1948 2003 Services represented 81 of GDP amp 81 of employment Almost all the absolute growth in numbers ofjobs and the fastest growth rates in job formation are in service sectors Banking transportation amp health care were some of the first service sectors Why do customers seem to review that service quality is declining Increasing selfservice amp technologybased service is perceived as less service because of no human interaction Technology based services internetbased service Automated voicemails have many failures and are poorly designed Since some customers experience excellent service from some companies they expect the same from every company and have higher expectations frequently disappointed Companies have cut cost and are too understaffed to provide quality service Lessskilled people working the frontline cashier because of the competitive job market skilled employees get promoted Many companies give lip service to customer focus and service quality but they fail to provide the training compensation and support needed to actually deliver quality service Delivery consistent high quality service is not easy yet many companies offer it What are sources for customers expectations How is it that customers set expectations The Sources of customer expectations are marketercontrolled factors such as pricing advertising sales promises as well as factors that the marketer has limited ability to affect innate personal needs wordofmouth communications competitive offerings What factors can marketers use to control customer expectations Price advertising sales promises What is the difference between transactional marketing and relationship marketing Transactional focuses on transactions markets to getting new customers Relationship Markets to retain existing customers What is a service scape The physical facility ex exterior interior and tangibles What is interactive marketing The marketing between contact people and customers EX Identify the service is high in search High search are usually for clothing jewelry housesetc Where do consumers find information for services of those which are the most important sources Personal Source friends amp family experience word of mouth Nonpersonal sources Internet What is the evoke set that set of products that a consumer considers acceptable in a given product category Simply put it s defined as the group of products or companies that come to mind when considering a purchase Identify the various components of a dramametaphor actor service delivery audience Customers backdrop physical setting What is customer compatibility Is it important Customer compatibility is a factor that influences customer satisfaction particularly in high contact services Has to do with the customers around someone also Ex how someone feels being in a club Yes important because it can lead to dissatisfaction of customers EX Identify Desired Level amp adequate service know the difference Desired level customer hopes to receive wished for expectation Adequate service is the minimum level considered acceptable Customer Expectations Beliefs about service delivery that serve as standards or reference points against which performance is judged Desired Service Top Level level of service the customer hopes to receive wish for level of performance Adequate Service low level the level of service that customers will ACCEPT What is the zone of tolerance The extent to which customers recognize and are willing to accept the variation of services Range or Window where customers do not notice service performance What is the factor that will influence a personsjudgment of service Expectations What is a service promise Explicit Service Promise are personal amp nonpersonal statements about the service made by the organization to customers Personal when they come from salesman Nonpersonal when they come from advertisements Implicit service Promises are service related cues other than explicit promises that lead to inferences about what the service should and will be like price amp tangibles How does customer satisfaction relate to service quality Customer Satisfacton Customer s evaluation of a product or service in terms of whether that product or service has met the customers needs and expectations Satisfaction is generally viewed as a broader concept whereas service quality focuses specifically on dimensions of service Perceived service quality is a component of customer satisfaction What are the factors people use in judging quality Service Quality A critical element of customer perceptions an be the dominant element in customers evaluations for pure service companies Judge the quality of services based on their perceptions of the technical outcome provided the process by which that outcome was delivered and the quality of the physical surroundings where the service is delivered EX in a case of the lawsuit judge on the technical outcome how the case was resolved and also on the quality of interaction What are the different dimensions in service quality Be able to identify what dimensions Reliablity Delivering on Promises able to perform the promised service accurately Responsiveness willingness to help customers amp provide prompt service Being Willing to Help Assurance Inspiring Trust and Confidence Employee s knowledge and courtesy and their ability to inspire trust and confidence Empathy Caring Individualized attention given to customers treating customers as individuals Tangibles Appearance of physical facilities equipment personnel and written materials Representing the service physically What is service encounter When the customer interacts with the service or product for the first time


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