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services
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economic activities offered by one party, commonly employ time based performances. Customer expect to obtain value from: access to goods, labour etc. they do not take ownership; Something that can be sold, but u cannot drop it on ur foot
charakteristics of services
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1. intangibility (nieuchwytność), 2. heterogeneity (niejednorodność) 3. Perishability 4. Simultaneous production and consumption
7p
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product, place, promotion, price, people, physical evidence, process
customers as creators and cocreators of services value
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1. they create value through involvement 2. enjoy value in use through continued engagement (companies provide platforms for creating value)/other customers can contribute to satisfation
direct and indirect cci (customer to customer interaction)
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direct (specific interactions between customers) indirect (impact of customers who are just there)
customer expectations of service
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customers expectations- beliefs about service delivery-standards against which performance is judged/customers compere their perceptions with reference points when evaluating quality
types of expectations
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desired service (levels wished), adequate service (minimal level of service, zone of tolerance (variation which is accepted and recognised by customers)
factors influencing customer expectations of service
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personal needs, personal service philosophy, derived service expectations, perceived service alternatives (other companies), situational factors, predicted service
sources of desired and predicted service expectations
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explicit service promises (personal-communicated by service personel, nonpersonal-ads), service promises, word of mouth, past experience
satisfaction vs service quality
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satisfaction is broader. Service quality reflects perception of reliability, assurance, responsiveness, empathy and tangibles (elementy zauważalne). satisfaction is more inclusive-influence by perceptions of service quality, product quality, price etc
customer satisfaction
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customers fulfillment response. Judgment of a feature or a product. Provides fulfillment
what determines customer satifaction
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product and service features, customer emotions (mood), attribution for service success or failure, perceptions of fairness, other people
service encounter/moments of truth
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when promises are kept or broken-they contribute overall satisfaction
relationship marketing
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Philosophie of doing business that focuses on keeping and improving relationships with current customers. Its cheaper to keep old customers
evolutions of customer relationships
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customer as strangers, as acquaintances, as friends, as partners
benefits of customer relationships
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for customers: getting greater value then expected, confidence benefits (trust, confidence, comfort in knowing what to expect), social benefits (familiarity), special treatment (deals etc.); firms: economic, customer behavior(free ads), hr (easier service
service failure
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performance that falls below customers expectations -> customer dissatisfation
service recovery
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actions in response to a service failure to improve situation for customer
why do people not complain
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a waste of time, nothing positive will result out of it, no confidence in the complaint proces, don't know how to, its difficult to report, feeling that its their fault
service employees
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people who play a part in service delivery and influence buyers perceptions- frontline employees are critical for success
what are service employees
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they are the service, they are organization in the the customers eyes, the brand and marketers
challenges for front line employees (fle)
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emotional labour, conflicts on the job (person/role conflict, organization/client conflict, interclient conflict)
4 combinations of capacity and demand
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excess demand, demand excess optimum capacity (overuse, crowding etc.), balance demand a the level of optimal capacity (quality service), excess capacity (underutilised resources)
capacity constrains
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time, labour, equipment, facilities
strategies to shift demand to match capacity
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reduce demand during peak time, increase demand to match capacity, increase demand to match capacity, adjust use of resources,
types of service innovation
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service offering innovation, innovating around customer roles, -=- servics solutions, interconneced products
role of nonmonetary cost
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time cost, search cost, convenience cost, psychological cost
alternative pricing policies
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discounts, guarantees/warranties, add-ons/extra products, refund policy. order cancellation time
personal service quaility
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technical quality(knowledge, technical solutions, employees ability, computerised systems)-what is delivered/functional (attitudes, behaviour, accessibility, service-mindedness, appearance-how it is delivered
servqual model
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responsiveness, reliability, empathy, assurance, tangibles
5 gap knowlage
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knowlage, policy, delivery, communication, customer
roles of customer as resources
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co-prodution, self service, feedback and innovation
self serving technologies
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services produced only by customer without interaction with employees
benefits and threats of sst
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convenience, accessibility, ease of use/technical issues, exclusion
types of switching barriers
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economic, psychological, procedural
customer relationship management (crm)
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strategy for building longterm customer relationship; better analysis of customer needs and loyality; helps retain customers
empowerment
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giving employees the authority to make customer-serving without asking manager
physical evidence
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all tangibles aspects of service that help customers evaluate its quality
servicescape
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physical environment where a service is delivered, including its ambience
service design
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planning and organising business resources in order to improve employees and customers experience
key qualities of service staff
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communication skills, emotional intelligence, problem-solving ability, adaptability and teamwork
cost-based pricing in services
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method of pricing your products or services based on the total cost of production
competition based pricing in services
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setting the price by looking at prices of competitors
types of service encounters
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remote, face to face, telephone

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