Understanding the Service Sector: Definitions, Characteristics, and Quality, Quizzes of Principles of Marketing

Download Understanding the Service Sector: Definitions, Characteristics, and Quality and more Quizzes Principles of Marketing in PDF only on Docsity! TERM 1 What % of GDP comes from Services? DEFINITION 1 81% TERM 2 Service? DEFINITION 2 when people or machines do something for other people or objects TERM 3 Large reason why service sector is growing? DEFINITION 3 Population is getting older, we need more doctors, therapists, and nursing care TERM 4 What are the 4 distict differences between services and a product? DEFINITION 4 1)Intangible-services cant be touched, tasted, felt, or heard like products can 2)Inseparable-produced and consumed at same time 3)Heterogenous-how alike/ how much the different service varies 4)Perishable-services normally cannot be stored TERM 5 What are the 3 different qualities of intangible services? DEFINITION 5 1) search quality- some characteristic that can help evaluate the quality of the service you are looking for(i.e.the color or size you are looking for) 2) Experience quality- in the eye of the beholder(i.e. how well do you think your tutor was) 3) Credence Quality-gives consumer knowledge before they purchase service( Dr certificate) TERM 6 How do you measure quality? (Hint: 5 things) DEFINITION 6 1) Reliability 2)Responsiveness 3)Assurance 4)Empathy 5)Tangibles TERM 7 Intangibility (characteristic of a service) DEFINITION 7 the inability of services to be touched, seen, tasted, heard or felt in the same manner that goods can be sensed TERM 8 Search Quality DEFINITION 8 a characteristic that can be easily assessed before purchase (services have fewer of these) TERM 9 Experience Quality DEFINITION 9 characteristic that can be assessed only after use TERM 10 Credence Quality DEFINITION 10 difficult to assess even after purchase because they do not have necessary knowledge (legal services) TERM 21 4 categories of service processes? DEFINITION 21 People Processing-service directed to customer(health care) Possession Prossessing-directed at physical possessions Mental Stimulus Processing-directed at peoples minds(education) Information Processing-use technology ad brainpower directed at customers assets (consulting) TERM 22 Core Service DEFINITION 22 Most basic benefit consumer is buying(hotel room) TERM 23 Supplementary services DEFINITION 23 a group of services that support or enhance core service(chocolate on pillow at hotel) TERM 24 Mass Customization DEFINITION 24 strategy that uses technology to deliver customized services on a mass basis (more efficient and cost less) TERM 25 Place Strategy? DEFINITION 25 key factor is convenience. Look at number of outlets to use or open during a certain time. Whether to distribute services to customers directly or indirectly (most are direct). You can use independent intermediaries for indirect channels. The location of the service most clearly reveals the relationship between its target market strategy and distribution strategy. TERM 26 Promotion strategy DEFINITION 26 1) Stressing tangible cues: concrete symbol of the service offering (doubletree hotel gives chocolate cookie upon arrival) 2) Using personal information sources: someone customers are familiar with (using real customers in the ads) 3) Creating a strong organizational image 4) Engaging in post-purchase communication TERM 27 Price Strategy DEFINITION 27 1) In order to price, it is important to define the unit of service consumption 2) For services that are comprised of several elements, determine if price should be based on a bundle of elements or whether each element should be priced separately 3) Set performance objectives when pricing each service a. Revenue oriented pricing b. Operations oriented pricing: match supply and demand with various prices c. Patronage oriented pricing: maximize number of patrons TERM 28 3 levels of Relationship Marketing? DEFINITION 28 1) The firm uses incentives to encourage customers to continue doing business with it (Financial) (example is frequent flyer miles) 2) Uses pricing incentives but seeks to build social bonds with customers (social) (example is firm staying in touch with customer) 3) Uses 1 and 2 but adds structural bonds to the formula. Developed by value added services that are not readily available by other businesses. (example is Hertz #1 Club Gold) TERM 29 Internal Marketing DEFINITION 29 treating employees as customers and developing systems and benefits that satisfy their needs TERM 30 To be successful in the international market place company must...? DEFINITION 30 determine the nature of their core product. Then focus on marketing mix elements based on the country.