MKTG 360 1nd Edition Lecture 12Outline of Last Lecture 1. Multiple Products2. Fiber One 3. Branding 4. Proctor and Gamble VideoOutline of Current Lecture 1. Why understand services?2. Four ways services differ from products3. Service quality- judgment service quality4. Gap model of service quality5. Core vs. supplementary service products6. Promoting positive responses to service failuresCurrent Lecture1. Why understand servicesa. Services will make up majority of job growth partly due to aging populationb. US biggest exporter of services2. Four ways services differ from productsa. Intangibilityb. Inseparabilityi. Customer must be present when “consuming” service c. Perishabilityi. Services cant be stored1. An empty hotel room produces no revenued. VariabilityThese notes represent a detailed interpretation of the professor’s lecture. GradeBuddy is best used as a supplement to your own notes, not as a substitute.i. Services more variable than products, due to variability in inputs and outputs3. Service Quality- Judging service qualitya. Reliability (most important)b. Responsivenessi. Ability to provide fast servicec. Assurancei. Knowledgeable and courteous employees who ear our trustd. Tangiblesi. Physical facilities, tools, equipment used to provide servicee. Empathyi. Caring, individualized attention to customer4. Gap model of service qualitya. Gap 1i. Between what customers and what management thinks they wantii. To close: know customers (needs, satisfaction)b. Gap 2i. Between what customers want and quality specs management develops to meet those desiresii. To close: understand satisfaction with servicec. Gap 3i. Between quality specs and actual service providedii. To close: train and educate employeesiii. Role of product ambiguity d. Gap 4i. Between what customer told company provides and what company actually providesii. To close: accurate communication about services that doesn’t- unrealistic expectationse. Gap 5i. Between service customers want and actual service receivedii. To close: understand satisfaction with servicef. Critical incident techniquei. Identify specific service encounters that led to problems, and address them5. Core vs supplementary service productsa. Core servicei. Basic benefit customer is seekingb. Supplementary servicei. Services that support or enhance core servicec. UPSd. Wellbeing videoi. 4 P’s6. Promoting Positive responses to service failuresa. Service failures (single deviation)i. When service deviates (falls below) expectationb. Failed service recovery (double deviation)i. When, following a service failure, a company fails at the service recovery