Session:11 Services: The Intangible Product
Key Terms
Principles of Marketing | Leadership Development – Micro-Learning Session
Rice University 2020 | Michael Laverty, Colorado State University Global Chris Littel, North Carolina State University| https://openstax.org/details/books/principles-marketing
- assurance
- in terms of the RATER model, the degree to which an organization inspires trust in its customers
- communication gap
- in the Gap Model of Service Quality, the variance between what is communicated to the customer and their actual experience
- customer gap
- in the Gap Model of Service Quality, the variance between the customer’s expectations and their perception of the service
- customer loyalty
- an ongoing positive relationship between a customer and a business that drives repeat purchases
- customer satisfaction
- a measurement that determines how happy customers are with a company’s products, services, and capabilities
- delivery gap
- in the Gap Model of Service Quality, the difference between the experience specification and the actual delivery of the service
- empathy
- in terms of the RATER model, focusing on customers attentively to assure they receive caring and distinguished service
- employee retention
- an organization’s ability to retain its employees and stop employees from leaving
- employee satisfaction
- the level of happiness and contentment employees have about their jobs and the work environment
- equipment-based services
- when machinery or equipment plays the primary role in the service delivery
- external service marketing
- the action of promoting or selling services to customers and potential customers
- external value proposition
- the value companies promise to deliver to customers post-purchase
- GAP Model of Service Quality
- theoretical marketing model that helps to identify the gaps between the perceived service and the expected service
- information processing
- intangible actions directed at a customer’s assets, such as insurance or consulting
- intangible
- unable to be seen, tasted, felt, smelled, or heard
- interactive service marketing
- the communication between the service provider and the customer; also called a service encounter
- internal service marketing
- satisfying employees to motivate them to work as a team to satisfy customers
- internal service quality
- the perceived level of satisfaction an employee experiences with services offered by internal service providers
- knowledge gap
- in the GAP Model of Service Quality, the difference between what customers expect and what managers think they expect
- mental stimulus processing
- situation in which the services interact with the customer’s mind rather than the body
- people processing
- services in which the customer is the direct recipient of the service and production and consumption are simultaneous
- people-based services
- tasks in which people, rather than equipment or machinery, play a major role in the delivery of the service
- policy gap
- in the GAP Model of Service Quality, the difference between managers understanding customer needs and being able to turn that into service delivery practices
- possession processing
- services in which the service is directed toward the customer’s physical possessions
- productivity
- the efficiency and output of employees
- RATER framework of service quality
- theoretical model that focuses on the five dimensions of service excellence: reliability, assurance, tangibles, empathy, and responsiveness
- reliability
- in terms of the RATER model, the organization’s capability to produce an accurate, dependable, and on-time service
- responsiveness
- in terms of the RATER model, promptness and willingness to provide satisfactory and quick service
- service encounter
- a consumer’s direct contact with a service provider
- service inseparability
- concept where services must be produced and consumed concurrently
- Service Marketing Triangle
- a visual representation of a strategic model that outlines the importance of people in a company’s ability to keep its service promises
- service perishability
- concept that states services cannot be stored in inventory for future use or sale
- service variability
- concept that states the quality of the service depends on who, when, where, and how it is provided
- service-profit chain model
- model that establishes relationships between profitability, employee satisfaction, loyalty, and productivity
- services
- nonphysical, intangible economic activities
- tangibles
- in terms of the RATER model, the physical appearance of both the facility and its employees