Services Marketing Exam 1

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MGT 430: Exam 1

-Service: deeds, efforts, or performances
-Goods: objects, devices or things
-The distinction between goods and services is not perfectly clear
-A product can be classified as either a good or a service
-Scale of Market Entities: the scale that displays a range of products along a continuum based on their tangibility ranging from tangible dominant to intangible dominant -Tangible Dominant: goods that possess physical properties that can be felt, tasted, and seen prior to the consumer’s purchase decision -Intangible Dominant: services that lack the physical properties that can be sensed by consumers prior to the consumer’s purchase decision

-Servuction Model: a framework for understanding the consumer’s experience
1. Servicescape: the use of physical evidence to design service environments
-Ambient conditions: room temperature and music
-Inanimate objects: furnishing
-Other physical evidence: signs, symbols
2. Contact Personnel/Service Producers:
-Contact Personnel: employees other than the primary service provider who briefly interact with the customer -Service Providers: the primary providers of a core service
-Waiter or waitress
-Dentist
-Physician
-College instructor
3. Other Customers: customers that share the primary customer’s service experience -The presence of other customers can enhance or detract from an individual’s service experience
-Unruly customers in a restaurant or a night club
-Children crying during a church service
-Theatergoers carrying on a conversation during a play
4. Organizations and Systems: that part of a firm that reflects the rules, regulations, and processes upon which the organization is based -Service Economy: includes the “soft parts” of the economy consisting of nine industry supersectors

-Education and Health Services
-Financial Activities
-Government
-Information
-Leisure and Hospitality
-Professional and Business Services
-Transportation and Utilities
-Wholesale and Retail Trade
-Other Services
-The Opportunity for Ethical Misconduct in Services:
-Intangibility: complicated the consumer’s ability to objectively evaluate the quality of service provided -Heterogeneity: reflects the difficulty in standardization and quality control -Inseparability: reflects the human element involved in the service delivery process -Factor Contributing to Consumer Vulnerability:

-Few search attributes
-Technical and specialized services
-Time lapse between performance and evaluation
-Sold without guarantees and warranties
-Accepted variability in performance
-Outcome-based reward systems
-Consumer participation in production
-The Effects of Ethical Misconduct:
-Personal Effects:
-Job-related tension
-Frustration
-Anxiety
-Ineffective performance
-Turnover intentions
-Lower job satisfaction
-Organizational Effects:
-Customer dissatisfaction
-Unfavorable word-of-mouth publicity
-Negative image for firm and industry
-Controlling Ethical Decision Making:
-Employee Socialization: the process through which an individual adapts and comes to appreciate the values, norms, and required behavior patterns of an organization -Standards of conduct
-Corrective control: the use of rewards and punishments to enforce a firm’s code of ethics -Leadership training
-Service/product knowledge
-Monitoring employee performance
-Stress long-term customer relationship
-Marketing Challenges and Solutions Pertaining to Intangibility
P: Services cannot be inventoried
S: Use of tangible clues to help “tangibilize”
-the physical characteristics that surround a service to assist consumers in making service evaluations, such as the quality of furnishings, the appearance of personnel, or the quality of paper stock used to produce the firm’s brochure

P: Lack of patent protection and can easily be copied
S: Use of personal sources of information
-Family, friends, and other opinion leaders to...
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