Ch 13 designing and managing services gonzaga

www.laymarketer.blogspot.com 1

TOP 10 Learning Questions for

For Chapter 13Designing and Managing

Services

Foglight Carlos GonzagaDecember 15, 2011

www.laymarketer.blogspot.com

1. Improving service quality means doing the following except

A. ListeningB. Fair playC. Servant LeadershipD. AdvertisingE. Employee research

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Improving Service Quality

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• Listening - understand what customers really want through continuous learning about the expectations and perceptions of customers and noncustomers

• Reliability• Basic service - keep promises, use common sense, listen to

customers, keep customers informed, and be determined to deliver value to customers

• Service design - develop a holistic view of the service while managing its many details

• Recovery - encourage customers to complain, respond quickly and personally, and develop a problem-resolution system


Improving Service Quality

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• Surprising Customers - process dimensions such as assurance, responsiveness, and empathy are most important in exceeding customer expectations

• Fair play - demonstrate fairness, to customers and employees

• Teamwork – improving employee motivation and capabilities

• Employee research - why do service problems occur and what should companies do to solve problems?

• Servant leadership - Quality service comes from inspired leadership throughout the organization

Nota bene: The actions stated above are essential for improving service quality across service industries. Advertising, on the other hand, is a tool for promotion


A. ListeningB. Fair playC. Servant LeadershipD. AdvertisingE. Employee research

1. Improving service quality means doing the following except


2. 24/7 Customer Service is an example of

A. standardized service-performance process

B. good hiring and training procedures C. monitoring customer satisfactionD. surprising customersE. the evidence of service from the

customer's point of view

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Three steps service firms can take to increase quality control

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Invest in good hiring and training procedures – Recruiting the right employees and providing them with

excellent training Standardize the service-performance process -

A service blueprint can simultaneously map out the service process, the points of customer contact, and the evidence of

service from the customer's point of view.

Monitor customer satisfaction - Employ suggestion and complaint systems, customer

surveys, and comparison shopping.


Three steps service firms can take to increase quality control

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Monitor customer satisfaction - Employ suggestion and complaint systems, customer

surveys, and comparison shopping.

24/7 customer service such as BPI’s 89-100 hotline is form of a suggestion and complaint system that helps companies monitor customer satisfaction.


2. 24/7 Customer Service is an example of

A. standardized service-performance process

B. good hiring and training procedures C. monitoring customer satisfactionD. surprising customersE. the evidence of service from the

customer's point of view


3. The gap between perceived service and ____________ can cause unsuccessful service delivery

A. management perceptionB. expected service C. external communicationD. consumer expectationE. service delivery

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Gaps that cause unsuccessful service delivery

• Gap between consumer expectation and management perception - Management does not always correctly perceive what customers want.

• Gap between management perception and service-quality specifications - Management might correctly perceive customers' wants but not set a performance standard

• Gap between service-quality specifications and service delivery - Personnel might be poorly trained, or incapable of unwilling to meet the standard

• Gap between service delivery and external communication - Consumer expectations are affected by statements made by company representatives and ads

Gap between perceived service and expected service - This gap occurs when the consumer misperceives the service quality

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Gaps that cause unsuccessful service delivery

Gap between perceived service and expected service - This gap occurs when the consumer misperceives the service quality

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An example of the gap between perceived service and expected service is when a doctor frequently visits a patient as an expression of care but the patient may see this as an indication that something is really wrong.


3. The gap between perceived service and ____________ can cause unsuccessful service delivery

A. management perceptionB. expected service C. external communicationD. consumer expectationE. service delivery


4. The employees' skill in serving the client describes

A. Interactive MarketingB. Direct MarketingC. Internal MarketingD. External MarketingE. Guerilla Marketing

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Three Types of Marketing in Service Industries

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External marketing describes the normal work of preparing, pricing, distributing, and promoting the service to customers.

Internal marketing describes training and motivating employees to serve customers well.


Three Types of Marketing in Service Industries

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Interactive marketing describes the employees' skill in serving the client. Clients judge service not

only by its technical quality (Was the surgery

successful?), but also by its functional quality (Did the

surgeon show concern and inspire confidence?).


4. The employees' skill in serving the client describes

A. Interactive MarketingB. Direct MarketingC. Internal MarketingD. External MarketingE. Guerilla Marketing

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5. Responsiveness refers to the ____________ to help customers and to provide prompt service.

A. knowledgeB. abilityC. careD. confidenceE. willingness

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Five determinants of service quality, in order of importance

1. Reliability - The ability to perform the promised service dependably and accurately

2. Responsiveness - The willingness to help customers and to provide prompt service.

3. Assurance - The knowledge and courtesy of employees and their ability to convey trust and confidence.

4. Empathy - The provision of caring, individualized attention to customers.

5. Tangibles - The appearance of physical facilities, equipment, personnel, and communication materials.

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Five determinants of service quality, in order of importance

Responsiveness - The willingness to help customers and to provide prompt service.

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Since the service IS the product, responsiveness is a major factor in measuring quality.

Human factor is critical especially for repetitive service. Prompt action, quick turn around time therefore hinges on the motivation and willingness to serve the customer.


5. Responsiveness refers to the ____________ to help customers and to provide prompt service.

A. knowledgeB. abilityC. careD. confidenceE. willingness

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6. The following are solutions to customer failures except

A. Creating high-performance customers by enhancing their role clarity, motivation, and ability

B. Redesigning processes and redefine customer roles to simplify service encounters

C. Encouraging "customer citizenship" where customers help customer

D. Increasing customer shift to self-service technologies

E. Incorporating the right technology to aid employees and customers

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Root causes of customer failure

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Root causes of customer failure

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One study estimated that one-third of all service problems are caused by the customer. With an increasing shift to self-service technologies, this percentage can be expected to rise.Based on the fishbone diagram, the following solutions may address customer failure:

- Creating high-performance customers- Redesigning processes and redefine customer roles- Encouraging "customer citizenship“ - Incorporating the right technology to aid employees and customers


6. The following are solutions to customer failures except

A. Creating high-performance customers by enhancing their role clarity, motivation, and ability

B. Redesigning processes and redefine customer roles to simplify service encounters

C. Encouraging "customer citizenship" where customers help customer

D. Increasing customer shift to self-service technologies

E. Incorporating the right technology to aid employees and customers

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7. The Cell phone is an example of

A. Pure tangible goodB. Tangible good with accompanying servicesC. HybridD. Major service with accompanying minor

goods and servicesE. Pure service

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Categories of service mix

A. Pure tangible good - the offering consists primarily of a tangible good such as soap, toothpaste, or salt. No services accompany the product.

B. Tangible good with accompanying services - The offering consists of a tangible good accompanied by one or more services.

C. Hybrid - The offering consists of equal parts goods and services. For example, people patronize restaurants for both the food and its preparation.

D. Major service with accompanying minor goods and services - The offering consists of a major service along with additional services or supporting goods.

E. Pure service - The offering consists primarily of a service. Examples include babysitting, psychotherapy, and massage.

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Categories of service mix

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Tangible good with accompanying services

Typically, the more technologically advanced the product, the greater the need for a broad range of high-quality supporting services.

An example is Telecom companies offering mobile phones with pre-paid or postpaid plan services.


7. The Cell phone is an example of

A. Pure tangible goodB. Tangible good with accompanying servicesC. HybridD. Major service with accompanying minor

goods and servicesE. Pure service

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8. Which of the following is false?

A. To reduce uncertainty, buyers will look for evidence of quality by drawing inferences from the place, people, equipment, communication material, symbols, and price.

B. Services are typically produced and consumed simultaneously.

C. Because the quality of services depends on who provides them, when and where, and to whom, services are highly variable.

D. Service companies are unable to demonstrate their service quality through physical evidence and presentation.

E. The right services must be available to the right customers at the right places at the right times and right prices to maximize profitability.

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Distinctive characteristics of services

Intangibility - To reduce uncertainty, buyers will look for evidence of quality by drawing inferences from the place, people, equipment, communication material, symbols, and price.

Service companies can try to demonstrate their service quality through physical evidence and presentation.

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Distinctive characteristics of services

Service companies can try to demonstrate their service quality through physical evidence and presentation.

Example: A hotel will develop a look and a style of dealing with customers that realizes its intended customer-value proposition, whether it's cleanliness, speed, or some other benefit.

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8. Which of the following is false?

A. To reduce uncertainty, buyers will look for evidence of quality by drawing inferences from the place, people, equipment, communication material, symbols, and price.

B. Services are typically produced and consumed simultaneously.

C. Because the quality of services depends on who provides them, when and where, and to whom, services are highly variable.

D. Service companies are unable to demonstrate their service quality through physical evidence and presentation.

E. The right services must be available to the right customers at the right places at the right times and right prices to maximize profitability.

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9. Jollibee’s Beeda ang Saya is an example of a brand strategy related to

A. Choosing brand elementsB. Establishing image dimensionsC. Devising brand strategyD. Redefining customer rolesE. Value augmenting services

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Developing brand strategies for services

Brand elements - logos, symbols, characters, and slogans—can also "pick up the slack" and complement the brand name to build brand awareness and brand image.

These brand elements often attempt to make the service and some of its key benefits more tangible concrete, and real.

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Developing brand strategies for services

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Jollibee’s iconic logo, mascot and tagline have been very effective brand elements that helped promote its corporate promise.


9. Jollibee’s Beeda ang Saya is an example of a brand strategy related to

A. Choosing brand elementsB. Establishing image dimensionsC. Devising brand strategyD. Redefining customer rolesE. Value augmenting services

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10. Which of the following is true?

A. A farmer may tolerate a combine that will break down three or four times a year.

B. The longer the downtime, the lower the cost.C. The customer counts on the seller's service

dependability to fix the machine quicklyD. The customer usually accepts the need to

spend on regular maintenance and repair costsE. For purchased products, reliability and failure

frequency are the least of the customer’s concerns

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Identifying and Satisfying Customer Needs

Customers have three specific worries:1. They worry about reliability and failure

frequency.2. They worry about downtime. The longer

the downtime, the higher the cost. 3. They worry about out-of-pocket costs.

Refers to customer spend on maintenance and repair cost

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Identifying and Satisfying Customer Needs

Customers worry about downtime. The longer the downtime, the higher the cost.

The customer counts on the seller's service dependability—the seller's ability to fix the machine quickly, or at least provide a replacement service machine so as not to disrupt the customer’s continued usage of the machine’s supposed function.

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10. Which of the following is true?

A. A farmer may tolerate a combine that will break down three or four times a year.

B. The longer the downtime, the lower the cost.C. The customer counts on the seller's service

dependability to fix the machine quicklyD. The customer usually accepts the need to

spend on regular maintenance and repair costsE. For purchased products, reliability and failure

frequency are the least of the customer’s concerns

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TOP 10 Learning Questions for

For Chapter 13Designing and Managing

Services

Foglight Carlos GonzagaDecember 15, 2011

Education

Ch 13 designing and managing services gonzaga