Business Administration 3301K Chapter Notes - Chapter 10: Root Mean Square, Competitive Service, Quality Management

• School: Western University
• Department: Business Administration
• Course: Business Administration 3301K
• Professor: Alex Mc Dougall

Document Summary

Services marketing differs from product marketing: 4 fundamental differences: intangible, inseparable, inconsistent (variable) and inventory (perishable) Inseparable production and consumption: inseparable: service is produced and consumed at the same time, customers rarely have opportunity to try service before purchase, extended warranties on services because risk is high. Inconsistent/variable: more humans needed to provide service, more inconsistent service is, reduce it by training and standardization, micro-marketing segmentation, customize service to meet customers exact needs, replace people with machines, to decrease inconsistency. Inventory: services are perishable, can"t be held inventory/stored for future use, balancing ups and downs of demand/capacity challenging, excess demand turn customers away. Knowledge gap: understanding customer expectations, evaluating service quality by. Standards gap: achieving service goals through training - set speci c, measurable goals based on customers" expectations, commitment to service quality - management should strive for excellent service as well. Communication gap: more likely to use word of mouth to spread dissatisfaction.