Chapter 12 Services The Intangible Product be physically possessed o Service any intangible offering that involves a deed performance or effort that cannot o Customer service refers to human or mechanical activities firms undertake to help satisfy their customer needs and wants o Intangible cannot be touched tasted or seen o Inseparable service and consumption o Variability the measure of quality in a service o Perishable services cannot be stored for use in the future o Service gap customers have certain expectations about how a service should be delivered When the delivery of that service fails to meet those expectations a service gap results Knowledge gap the difference between customers expectations and the firm s perception of those customer expectations Can be closed through research Service quality customers perceptions of how well a service meets or exceeds their expectations Voice of customer VOC program collects customer inputs and integrates them into managerial decisions Zone of tolerance area between customers expectations regarding their desired service and the minimum level of acceptable service that is the difference between what the customer really wants and what he or she will accept before going elsewhere Standards gap difference between firm s perceptions of customers expectations and the service standards it sets Can be closed by setting appropriate standards and measuring service performance Delivery gap difference between the firm s service standards and the actual service it provides to customers Can be closed by getting employees to meet or exceed service standards Empowerment allowing employees to make decisions about how service gets provided to customers Emotional support demonstrating a concern for their well being and standing behind their decisions Instrumental support systems and equipment to deliver the service properly RFIDS radio frequency identification devices tiny computer chips that automatically transmit to a special scanner all the info about a containers contents or individual products Communication gap difference between the actual services provided to customers and the service that the firm s promotion program promises Can close this gap by being more realistic about the service they can provide and at the same time manage customer expectation effectively o Distributive fairness customer s perception of the benefits he or she received compared with the costs inconvenience or loss o Procedural fairness perceived fairness of the process used to resolve complaints
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