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Flashcards in Test 2 Deck (33)
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1
Q

Relationship Marketing

A

It basically sates that it is cheaper to retain a customer than it is to get and find a new one.
You want keep and improve the customer relationship.

2
Q

Bucket Theory of Marketing

A

That your business is the bucket and marketers want to keep filling the bucket and they do this by dumping customers into the bucket but there are holes in the bucket and that is people leaving because they are unhappy so you want to focus on plugging those holes up. (relationship Marketing)

3
Q

4 stages of relationships

A

Is to build the relationship ladder, First step your acquiring your customer, Second you satisfy that customer, Third you retain that customer, Lastly you enhance that customers experience.

4
Q

What are the benefits for customers for relationship marketing

A
Receipt of greater value
Confidence benefits:
trust
confidence in provider
reduced anxiety
Social benefits:
familiarity
social support
personal relationships
Special treatment benefits:
special deals
price breaks
5
Q

What are the benefits for relationship marketing for Business Firms?

A
Economic benefits:
increased revenues
reduced marketing and administrative costs
regular revenue stream
Customer behavior benefits:
strong word-of-mouth endorsements
customer voluntary performance
social benefits to other customers
mentors to other customers
Human resource management benefits:
easier jobs for employees
social benefits for employees
employee retention
6
Q

Customer loyalty pyramid

A

bottom- top:
Lead- These are the customers that cost the company money. The complain the most and need the most attention.
Iron- these are the essential customers. they provide the volume, but they are not substantial enough to receive special treatment.
Gold- these customers are not as loyal and want the price discounts. they might be a heavy user but shop where the discounts are.
Platinum-Most profitable heavy users, not really price sensitive, committed to the firm and willing to invest.

7
Q

Transactional Marketing

A

Meaning you are more worried about building your customer list and not about taking care of the customers that you already have.

8
Q

Switching Barriers

A

Customer Inertia-requires a certain amount of effort. so it is just not worth it to switch.

switching costs:
set up costs, search costs, learning costs, contractual costs

9
Q

Relationship Bonds

A

financial bonds- Tied only through finical incentives.
social bonds-seek to build long- term relationships through social and interpersonal and finical bonds.
customization bonds-same as above plus some customization like pandora.
structural bonds- everything from above and specific bonds that are normally formed by using technological stuff that enhances the customers business.

10
Q

Service Recovery

A

The physical act of doing something once there has been a service failure

11
Q

What is the Ice Berg effect

A

Remember that only 1-5% of people actually complain, and then the whole bottom of the iceberg does not complain and just deals with it.

12
Q

BAD Hotel Double tree

A

Remember how the bad hotel experience was very popular and went viral and ruined the hotel.

13
Q

Service recovery paradox

A

Is when you have a really bad service failure but then you recover and then that customer is even more satisfied then they would have been.

14
Q

Passive complainer

A

They are least likely to take any action, and are unlikely to spread any negative comments through word of mouth. they doubt the effectiveness of complaining.

15
Q

Voicers Complaining

A

They actively complain to the service provider, but they are less likely to say negative things via word of mouth. these are the service providers best friends, since they give the company a second chance and let the company know that they did something wrong without loosing there business.

16
Q

Irate’s Complaining

A

These are most likely than others to be involved with negative word of mouth. The do complain to the provider and believe in complaining can have it’s social benefits. they are also less likely to give the provider a second chance.

17
Q

ACTIVISTS complaining

A

They are characterized above average on all dimensions of complaints/ they will tell others, they are more likely than all others to complain to a third party group.

18
Q

which comes first fix the problem or fix the customer?

A

You first fix the customer then the problem

19
Q

what are the 3 kinds of fairness

A

Outcome- matching the level of the complaint with the same level of compensation.
Procedural- in addition the customer should be treated with all the fairness of a timely response to there complaint.
Interracial-above and beyond

20
Q

Service Guarantee

A

Unconditional
Meaningful
Easy to Understand
Easy to Invoke

21
Q

Benefits of service guarantees

A

A good guarantee forces the company to focus on its customers.
An effective guarantee sets clear standards for the organization.
A good guarantee generates immediate and relevant feedback from customers.
When the guarantee is invoked there is an instant opportunity to recover.
Information generated through the guarantee can be tracked and integrated into continuous improvement efforts.
A service guarantee reduces customers’ sense of risk and builds confidence in the organization.

22
Q

Reasons companies might NOT want to offer a service guarantee

A

Existing service quality is poor
A guarantee does not fit the company’s image
Service quality is truly uncontrollable
Potential exists for customer abuse of the guarantee
Costs of the guarantee outweigh the benefits
Customers perceive little risk in the service

23
Q

Risks of Relying on Words Alone to Describe Services

A

Oversimplification
Incompleteness
Subjectivity
Biased Interpretation

24
Q

User-centered

A

Services should be experienced and designed through the customers eyes

25
Q

Cocreative

A

All stakeholders should be included in the service design process

26
Q

Sequencing

A

A service should be visualized as a sequence of interrelated actions

27
Q

Evidencing

A

: A service should be visualized as a sequence of interrelated actions

28
Q

Holistic

A

The entre environment of a service should be considered

29
Q

Types of service offering innovations

A
Major or radical innovations
Start-up businesses
New services for the currently served market
Service line extensions
Service improvements
Style changes
30
Q

Look at figure 8.1 and 8.2

A

need to know basics

31
Q

Service Blueprinting

A

A tool for simultaneously depicting the service process, the points of customer contact, and the evidence of service from the customer’s point of view.

32
Q

what do the lines mean on a service blue print

A

Top line is the line of interaction
middle line is the the line of visibility
last line is the line of interaction

33
Q

Benefits for a service blue print

A

Provides a platform for innovation.
Recognizes roles and interdependencies among functions, people, and organizations.
Facilitates both strategic and tactical innovations.
Transfers and stores innovation and service knowledge.
Designs moments of truth from the customer’s point of view.
Suggests critical points for measurement and feedback in the service process.
Clarifies competitive positioning.
Provides understanding of the ideal customer experience.