MKT-3010 Study Guide - Midterm Guide: Customer Service, Material Handling, Big Data
28 Apr 2018
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Marketing Chapter 3 Study Guide
Chapter 13 Review Sheet Services: The Intangible Product
TERMS
Service- Any intangible offering that involves a deed, performance, or effort that cannot be
physically possessed; 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- characteristic of a service: it is produced and consumed at the same time; that is,
service and consumption are inseparable.
Heterogeneity- as it refers to the differences between the marketing of products and services, the
delivery of services is more variable
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' exceptions and the service standards it sets.
Delivery gap- a type of service gap; pertains to the difference between the firm's perceptions of
customers' expectations and the service standards it sets
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
The 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 and the minimum level of acceptable service - that is,
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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
Emotional support- concern for others' well-being and support of their decisions in a job setting
Instrumental support- Providing the equipment or systems needed to preform a task in a job
setting
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
resolved complaints about service
YOU WILL BE HELD RESPONSIBLE FOR THE FOLLOWING MATERIAL:
• Why is customer service important to customers?
Specifically refers to human or mechanical activities firms undertake to help satisfy their
customers' needs and wants.
• What are hybrid products? The offering of a good and service
• How do service-oriented economies develop? Why is this important in terms of services?
76% of the U.S. gross domestic product is from service. It is generally cheaper to
manufacture products in less developed countries. Second, people place high value on
convenience and leisure. Third, people are demanding more specialized services.
• What are the four factors that contribute to making marketing services different than
marketing products? What does each of these entail? How do marketers overcome each
of these when marketing services?
o Intangible ( Quality evaluation: experience quality, credence quality; Convey
benefits: cues and atmosphere; Promotion: symbols and images);
o Inseparable ( production and consumption simultaneous, employee and
warranties, employee dependence);
o Variable/ Heterogeneity ( standardization, training, micromarketing, and
machines);
o Perishable ( cannot be stored, warehoused or inventoried, and match demand and
supply)
• Why do marketers use The Gaps Model? What are the four gaps and what is entailed in
each? How do marketers close each gap?
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It is designed to encourage the systematic examination of all aspects of the service
delivery process and prescribes the steps needed to develop an optimal service strategy. o
The Knowledge Gap(customer expectations vs. Firm's perception of customer
expectations; Research(knowledge and experience, type of service, and situation);
Service quality(reliability, responsiveness, assurance, empathy, and tangibles).
o The Standards Gap (Firm's perception of customer expectations vs. service
standards, training, commitment). o The Delivery Gap ( service standards vs.
actual service, empowerment, emotional and instrumental support, and
technology). o The Communication Gap (service provided vs. Service
promised and manage expectations).
• What is important in understanding customer expectations?
To reduce the knowledge gap, firms must understand customers' expectations. To
understand those expectations, firms undertake customer research and increase the
interaction and communication between managers and employees.
• What is service quality and how is it evaluated? What are the definitions of these five
factors?
Customers' perceptions of how well a service meet or exceed their expectations.
o Reliability o Responsiveness o Assurance o Empathy o Tangibles).
• When should a service recovery be performed? What should a service recovery entail?
When service provided fail to meet customer expectations. Listening to the customer,
finding a fair solution (distributive fairness and procedural fairness), and resolving
problems quickly. Distributive fairness: pertains to a customer's perception of the benefits
he or she received compared with the costs 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.
Chapter 14 Review Questions Pricing Concepts for Establishing Value
TERMS
Price- overall sacrifice a consumer is willing to make--money, time, energy--to acquire a specific
product or service
Profit Orientation- company objective by focusing on target profit pricing, maximizing profits, or
target return pricing
Sales orientation- A company objective based on the belief that increasing sales will help the
firm more than will increasing profits.
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Document Summary
Chapter 13 review sheet services: the intangible product. Service- any intangible offering that involves a deed, performance, or effort that cannot be physically possessed; 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- characteristic of a service: it is produced and consumed at the same time; that is, service and consumption are inseparable. Heterogeneity- as it refers to the differences between the marketing of products and services, the delivery of services is more variable. 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.
