The process of applying human or mechanical efforts to people or objects -Involves a deed, a performance, or an effort that cannot be physically possessed Show
4 Characteristics that distinguish a service from goods. 1. They are intangible 2. They are inseparable 3. They are heterogenous 4. They are perishable -The inability of services to be touched, felt, seen, heard, or tasted in the same manner that goods can be sensed -Makes it harder to evaluate the quality of a service because services exhibit fewer search qualities -However, services tend to exhibit more experience and credence qualities A characteristic that can be easily assessed before purchase. -more often associated with goods -Example: The color of a good A characteristic that can be assessed only after use. -Example: Quality of a meal in a resteraunt A characteristic that may be difficult to assess even after purchase because the consumers do not have the proper knowledge or experience about it -Example: Medical and consulting services -Refers to the fact that services are sold, produced and consumed all at the same time. -Consumers are a part of the production process, they must be present for it -Means that services cannot be produced in a centralized location or consumed in a decentralized location for that matter -Services are also inseparable from the perspective of the service provider, meaning that the quality of a service depends on the employees -Refers to the variability of the inputs and outputs of services which cause services to be less standardized and uniform than goods -Because services tend to be labor intensive and the consumption and production processes are inseparable consistency and quality control are hard to produce Refers to the inability of a service to be stored, warehoused, or inventoried -An empty hotel room or airplane seat produces no revenue that day, however, service organizations are forced to turn away full-price customers during peak periods What five components are used to evaluate the quality of a service? 1. Reliability 2. Responsiveness 3. Assurance 4. Empathy 5. Tangibles The ability to perform the service dependably, accurately, and consistently. -Reliability is performing the service right the first time. The most important measure of quality according to consumers. -The ability to provide a service promptly -The ultimate in responsiveness is providing a service 24/7 The knowledge and courtesy of employees and their ability to convey trust. Caring, individualized attention to customers. -Companies whose employees recognize customers and learn their specific needs are exemplifying empathy The physical evidence of a service. The tangible parts of a service include the physical facilities, tools, and equipment used to provide the service, as well as the appearance of personnel. How is overall service quality measured? It is measured by combining the customer's evaluation for all five components: Reliability, Responsiveness, Assurance, Empathy, and Tangibles A model identifying five gaps that can cause problems in service delivery and influence consumer evaluations of service quality The gap between what customers want and what management thinks customers want. -Results from a lack of understanding and misinterpretation -To close this gap firms must stay attuned to customer wishes by researching customer needs and wants The gap between what management thinks customers want and the quality specifications that management develops to provide that service -results from managements inability to transform what customers need into delivery systems within the firm The gap between the service quality specifications and the service that is actually provided. -If both gaps 1 and 2 have been closed, then gap 3 is due to the inability of management and employees to do what should be done. The gap between what the company provides and what the consumers are told it provides. -This is clearly a communication gap -Misleading advertisements, etc. -To close this gap, companies need to create realistic customer expectations through honest, accurate communication about what the firms can provide The gap between the service the customers receive and the service they want to receive What two broad categories of things get processed in service organizations? What are the four categories of service processes? 1. People Processing 2. Possession Processing 3. Mental Stimulus Processing 4. Informational Processing -Takes place when the service is directed at a customer. Examples: transportation services and health care. When the service is directed at customer's physical possessions. Mental Stimulus Processing Services directed at people's minds. Services that use technology and brainpower directed at a customer's assets Three Categories of Pricing Objectives 1. Revenue Oriented Pricing 2. Operations Oriented Pricing 3. Patronage Oriented Pricing Focuses on maximizing the surplus of income over costs Focuses on maximizing the surplus of income over costs Operations-Oriented Pricing Seeks to match supply and demand by varying prices. Patronage Oriented Pricing Seeks to maximize the number of customers utilizing that service. -Example: Different prices are given to different target markets -Example: Different payment methods are offered Relationship Marketing can be practiced at how many levels? Level One Relationship Marketing -Uses price incentives to retain customers Level Two Relationship Marketing -Uses pricing incentives to retain customers but also tries to establish social bonds with customers -Stays in touch with customers, designs services to meet their needs, etc. Level 3 Relationship Marketing The firm uses financial and social bonds, but also adds structural bonds to the formula. -Structural bonds are developed by offering value added services that are not readily available from other firms. Treating employees as customers and developing systems and benefits that satisfy their needs Non-profit Organization Marketing The effort by non-profits to bring about mutually satisfying exchanges with target markets Non-profit Organizations Activities 1. Identify the customers they wish to serve or attract. 2. Explicitly/implicitly specify objectives 3. Develop, manage, and eliminate programs and services 4. Decide on prices to charge (donations, etc.) 5. Schedule events or programs 6. Communicate their availability What are the components of service quality?Five service dimensions are identified: READINESStRELIABILITY, TRUST, COMFORT, SECURITY, and ACCESS. They are examined in terms of their impact of customers' overall quality perception and their willingness to recommend the firm to a friend.
How would you describe the element of service quality which is defined as the ability to perform the service dependably?Solution(By Examveda Team)
The element of service quality assurance is defined as 'the knowledge and courtesy of employees and their ability to convey trust and confidence'. Assurance refers to financial coverage that provides remuneration for an event that is certain to happen.
What is tangible service quality?Tangibles: appearance of physical facilities, equipment, personnel, and communication materials. Reliability: ability to perform the promised service dependably and accurately. Responsiveness: willingness to help customers and provide prompt service.
What dimension of service quality is highly dependent on employees ability to communicate their credibility and to inspire trust confidence?4. Assurance. It means to inspire trust and confidence. Assurance is defined as employees' knowledge of courtesy and the ability of the firm and its employees to inspire trust and confidence.
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Which service quality component is the knowledge and courtesy of employees and their ability to convey trust?
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