Service Marketing Assignment

1. Definition of services with service sectors examples: - Services refers to delivery of

customer satisfaction depends on employee’s action. Service refers to “Activities,
benefits and satisfactions which are offered for sale or are provided in connection with
the sale of goods.” Examples of service are financial services, hospitality, education,
transportation etc.
2. Characteristics of services: the characteristics of services are Intangibility,
Heterogeneity, inseparability, Simultaneous Production and Consumption and
Perishability.
3. Moments of Truth: A moment of truth is usually defined as an instance wherein the
customer and the organization come into contact with one another in a manner that gives
the customer an opportunity to either form or change an impression about the firm.
4. Service Blue Print or Service Mapping: Service mapping is an aspirational tool for the
modern IT department of an enterprise. It discovers underlying IT applications and their
components and creates a map on how these connect to business services. Service
mapping delivers several benefits like improved visibility, business continuity and
compliance.
5. Service Blue Print Components: The following are the components of service
blueprint:
1. Physical Evidence
2. Customer actions
3. Support process
4. Visible employee actions
5. Invisible contact employees’ actions
6. QFD: Quality Function Deployment: Quality function deployment is a method
developed in Japan beginning in 1966 to help transform the voice of the customer into
engineering characteristics for a product. 
7. Service Encounter: Service encounter is considered the core of any service marketing
issue and considerably affects service quality control, service delivery systems, and
customer satisfaction.
8. Tangibility Spectrum: It refers to that Products defined as goods are arrayed on the
tangible-dominant half of the spectrum and products defined as services on the
intangible dominant halfPure goods and pure services lie at the extremities.
9. Physical evidence and Servicescape: It refer to the elements of marketing mix which
customers can actually see or experience when they use a service, and which
contribute to the perceived quality of the service.
10. 7ps of Services (4P’s + People, Physical Evidence and Process): It refers to the
marketing for the services however is called the extended marketing. Whereas in the
goods marketing, the marketing consists of 4 P’s that is Product, Price, Place,
Promotion, in service marketing the same will have 7P’s which are Product, Price,
Place, Promotion, Process, Physical Evidence, People. The three additional P’s
Process, Physical Evidence, People are exclusive to service marketing.
11. SQI (Service Quality Indicators): it represents five things tangibility, reliability,
responsiveness, assurance and empathy which together measure service quality.
12. Tangibility Spectrum (least to high) : It refers to Products defined as goods are
arrayed on the tangible-dominant half of the spectrum and products defined as services
on the intangible dominant halfPure goods and pure services lie at the extremities.

In the following
diagram, the blue
color refers to the
extent of
tangible/physical
product offering and
 the red is the extent of intangible/service product offering across a number of selected
industries.
13. Service Delivery (Berner &Gronoos): the set of activities that take place to perform
a service. Performance involves the coordinated actions of both the provider and user
(customer) of the service. In industrial settings, there may be many types of users, and
the number of performers increases.
14. Critical Incidents and Critical Incidents Techniques (Dissatisfied or Delighted): It
refers to a research method in which the research participant is asked to recall and
describe a time when a behavior, action, or occurrence impacted (either positively or
negatively) a specified outcome (for example, the accomplishment of a given task).
15. Service Quality: It refers to a customer's comparison of service expectations as it
relates to a company's performance. A business with a high level of service quality is
likely capable of meeting customer needs while also remaining economically
competitive in their respective industry.
16. ServQual Dimensions (five dimensions of service quality- Reliability,
Responsiveness, Assurance, Empathy and Tangibility (RATER Model): It refers
to The RATER Model is a tool for evaluating the quality of your company's services.
It is an acronym that stands for Reliability, Assurance, Tangibles, Empathy, and
Responsiveness, each of which is a different dimension against which the quality of
your service provision is assessed.
17. Search Quality, Experience Quality & Credence Quality: Service quality refers to
a customer's comparison of service expectations as it relates to a company's
performance. A business with a high level of service quality is likely capable of
meeting customer needs while also remaining economically competitive in their
respective industry. Experience quality is a measure of the delight or annoyance of a
customer's experiences with a service. It focuses on focuses on the entire service
experience; it is a holistic concept, similar to the field of user experience, but with its
roots in telecommunication. Credence quality refers to the quality that is difficult for
customers to evaluate even after they have consumed a product or service. It is
associated with products and services that require special skills to evaluate or where
results aren't immediately apparent.
18. Triangle of services marketing (internal, external, and interactive marketing):
The service triangle is used to market the service to the consumers. The components of
service triangle are internal marketing, external marketing and the interactive
marketing; the entities of the service triangle are supportive management, system and
the competent employees.
19. National Customer Satisfaction Index (USA): It refers to The American Customer
Satisfaction Index is an economic indicator that measures the satisfaction of
consumers across the U.S. economy. It is produced by the American Customer
Satisfaction Index based in Ann Arbor, Michigan. 
20. Consumer Confidence Index: It refers to a survey, administered by The Conference
Board, that measures how optimistic or pessimistic consumers are regarding their
expected financial situation. The CCI is based on the Consumer Confidence Survey.
21. American Customer Satisfaction Index: The American Customer Satisfaction Index
is an economic indicator that measures the satisfaction of consumers across the U.S.
economy. It is produced by the American Customer Satisfaction Index based in Ann
Arbor, Michigan. 
22. Customer Perception and factors effecting customer perceptions: A consumer's
perception of a product or service is at least partially based on his actual experience
with the good, a significant amount of market research suggests that a consumer's view
of a product is also conditioned by a variety of other factors. From very concrete
factors of price and quality to fewer tangible factors such a consumer's view of the
manufacturer's reputation, experience with service and the quality of packaging and
branding, a number of complex and interrelated psychological factors determine a
consumer's perception of goods and services.
23. Customer expectation and factors effecting customer expectations: Customer
expectation encompasses everything that a customer expects from a product, service or
organization. Customer expectations are created in the minds of customers based upon
their individual experiences and what they have learned, combined with their pre-
existing experience and knowledge. Customers will have both explicit and implicit
expectations regarding the product or service which they have purchased. They will
have performance expectations which include a dynamic element due to anticipated
changes to the product or service over time. Importantly, they will also have
interpersonal and service-level expectations which relate directly to the customer
relationship and interaction with a business or organization.
24. Customer satisfaction and customer delight: Customer satisfaction tells on how
happy or unhappy are your customers with your product or services. Customer
satisfaction information which includes reviews, ratings, and surveys can let a brand
know how good, bad, or ugly are they performing.  customer delight mainly hovers
around exceeding the nominal customer expectations and coming up with something
afresh that augments your overall brand loyalty or customer experience quotient.
25. Relationship Marketing: Relationship marketing is a form of marketing developed
from direct response marketing campaigns that emphasizes customer retention and
satisfaction rather than sales transactions.
26. Customer Relationship Management: Customer Relationship Management refers to
a process in which a business or other organization administers its interactions with
customers, typically using data analysis to study large amounts of information.
27. Know Your Customer (KYC): It refers to the process of verifying the identity of
your customers, either before or during the time that they start doing business with
you. The term “KYC” also references the regulated bank customer identity verification
practices to assess and monitor customer risk.
28. Life time value of customers (LTVC): It represents the total amount of money
a customer is expected to spend in your business, or on your products, during
their lifetime.
29. Customer acquisition: It refers to bringing in new customers - or convincing people
to buy your products. It is a process used to bring consumers down the marketing
funnel from brand awareness to purchase decision.
30. Customer Retention strategies: The following are the customer Retention Strategies:
1. Retain customers with a smooth onboarding process.
2. Keep your products and services top of mind.
3. Reward promoters and loyal customers.
31. Customer enhancement: It refers to understanding that customers judge companies
based on the sum total of their interaction with the company and the brand. On an
intuitive level, it makes sense that a customer's total experience is important to the
customer's view of their experience with the company.
32. Customer Defection: It is the loss of users or consumers or the decrease in purchases
by them, with the impact on reducing the Company's business.
33. Types of customer complaints: The following are the types of customer complaints:
1. Long Wait on Hold. 2. Unavailable or Out of Stock Product. 3. Poor Product or
Service.
34. Complaint as a Gift.: Complain is as a gift because a Complaint is a gift provides a
great means for explaining how a company can provide service excellence and handle
complaints through improved customer relationships, which ultimately will increase
revenue and satisfaction.
35. Service Recovery: Service Recovery refers to a company's resolution of a problem
from a dissatisfied customer, converting them into a loyal customer. It is the action a
service provider takes in response to service failure.
36. Service Recovery Strategies: Service recovery strategy refers to the strategic action a
service provider takes to cope with the service failure and convert a previously
dissatisfied customer into a loyal customer, and it is of course beneficial for hospitality
organizations in many ways. Appropriate service recovery is the key to changing
customer attitudes.
37. Service Recovery Paradox: Service Recovery Paradox refers to a situation in which a
customer thinks more highly of a company after the company has corrected a problem
with their service, compared to how they would regard the company if non-faulty
service had been provided. The main reason behind this thinking is that successful
recovery of a faulty service increases the assurance and confidence from the customer.
For example, a traveler’s flight is cancelled. When she calls the airline, they apologies
and offer her another flight of her choice on the same day, and a discount voucher
against future travel. Under the service recovery paradox, the traveler is now happier
with the airline, and more loyal to it, than she would have been had no problem
occurred.
38. Service Guarantee: A service guarantee is a marketing tool service firms have
increasingly been using to reduce consumer risk perceptions, signal quality,
differentiate a service offering, and to institutionalize and professionalize their internal
management of customer complaint and service recovery.
39. Stages in New Service Development: Business Strategy Development, New
Service Strategy Development, Idea Generation, service concept development and
analysis, Business Analysis.
40. Customer Defined Service Standards (CDSS): Customer service standards are a set
of policies and expectations that have been created and adopted by a company. The
standards cover all the points of contact the business may have with the customer.
41. One Time Fixes: One Time Fixes refers to a service standard should be linked to an
operational performance target or the frequency to which the organization expects to
meet the service standard.
42. Hard Service Standards & Soft Service Standards: Hard service standards refers to
measures relate to those characteristics and activities that can be counted, timed or
measured through audits.
43. Customer as Partial Employee: When a customer is considered to be a partial
employee, the customer is integrated into the producer side of the equation. The
customer becomes a vital component of the production and service delivery part of the
organization. This move translates to a reduction in overall operational costs.
44. The customer who complains is your friend: It refers to Instead of being offended
by a negative review, look at it as a learning experience. Solicit reviews and give your
customers the option to offer feedback through surveys or follow up calls. This will
give you better insight into what’s most important to your customer and what affects
their experience. By allowing your customers to have a voice, even one that has
complained, they will come to you with their issues instead of going online. They’ll
understand that you care and be more willing to forgive whatever happened. Customer
complaints offer the opportunity for a response, one that will ease the customers’
concerns and regain their loyalty. Most times, customers don’t complain to the
company but to their friends and family. This hurts your company’s reputation in a
way that could cause the people who have heard these complaints to avoid your
company. When a customer complains to you (or online), however, it gives you the
opportunity to win the customer back with your response and follow through.
45. A complaint is a gift: It refers to that a unique concept and a practical tool to ensure
customer satisfaction which is crucial to the future of an organization. Satisfied
customers are “goodwill” ambassadors of the organization, and they buy again.
46. Customer is the King: Customer is King is an age-old business mantra accentuating
the importance of customers (and would-be customers) in every business.
Traditionally, this rule usually entails a company’s promise to provide good customer
services to well, the customers.  But with the current evolution on work and business
settings coupled with technological advancement, ‘customer is king’ means more than
just good customer service.
47. Customer is always, right? – It refers to is a motto or slogan which exhorts service
staff to give a high priority to customer satisfaction.
48. Zone of Tolerance: The zone‐of‐tolerance (ZOT) is an innovative concept that has
attracted recent attention in the services marketing domain. The ZOT represents a
 range of service performance that a customer considers satisfactory, which recognizes
multiple expectation standards, specifically adequate and desired expectations.
49. Gaps Model of Service Quality: The five gaps that organizations should measure,
manage and minimize:

 Gap 1 is the distance between what customers expect and what managers think they
expect - Clearly survey research is a key way to narrow this gap.
 Gap 2 is between management perception and the actual specification of the customer
experience - Managers need to make sure the organization is defining the level of service
they believe is needed.
 Gap 3 is from the experience specification to the delivery of the experience - Managers
need to audit the customer experience that their organization currently delivers in order to
make sure it lives up to the spec.
 Gap 4 is the gap between the delivery of the customer experience and what is
communicated to customers - All too often organizations exaggerate what will be
provided to customers, or discuss the best case rather than the likely case, raising
customer expectations and harming customer perceptions.
 Finally, Gap 5 is the gap between a customer's perception of the experience and the
customer's expectation of the service - Customers' expectations have been shaped by
word of mouth, their personal needs and their own past experiences.
Routine transactional surveys after delivering the customer experience are important for
an organization to measure customer perceptions of service.

50. Service Culture: It refers to a shared purpose where everyone is focused on creating
value for others inside and outside the organization.
51. The Perception Gap: It refers to Customer perception is totally subjective and is
based on the customer’s interaction with the product or service. Perception is derived
from the customer’s satisfaction of the specific product or service and the quality-of-
service delivery.
52. SSTs (Self Service Technologies): It refers to technological interfaces allowing
customers to produce services independent of involvement of direct service employee.
Self-Service technologies are replacing many face-to-face service interactions with the
intention to make service transactions more accurate, convenient and faster.
53. Jay Customers: It refers to Customer who intentionally act in a thoughtless or abusive
manner, causing problem for the company.
54. Service Audit: Service audits uncover what your company and employees are doing
well and help identify areas of opportunity to improve the customer service
 experience. A third-party audit provides an unbiased experience that may not be the
same as what happens.
55. Return on Quality: An approach that evaluates the financial return of investments in
quality. Successful management of quality requires that managers have insights on
various aspects of quality. Without ease of use, companies may lose customers, face
sales returns, or legal problems from product injuries.
56. Segmentation, Targeting and Positioning (STP Strategy): STP marketing is an
acronym for Segmentation, Targeting, and Positioning – a three-step model that
examines your products or services as well as the way you communicate their benefits
to specific customer segments. STP marketing represents a shift from product-focused
marketing to customer-focused marketing.
57. Integrated Marketing Communication: Integrated Marketing Communications is a
simple concept. It ensures that all forms of communications and messages are
carefully linked together. At its most basic level, Integrated Marketing
Communications, or IMC, as we'll call it, means integrating all the promotional tools,
so that they work together in harmony.
58. Advertising: It refers to the promotion of a product, brand or service to a viewership
in order to attract interest, engagement and sales. It comes in many forms, from copy
to interactive video, and have evolved to become a crucial feature of the app
marketplace.
59. Personal selling: It refers to face-to-face selling in which one person who is the
salesman tries to convince the customer in buying a product. It is a promotional
method by which the salesperson uses his or her skills and abilities in an attempt to
make a sale.
60. Public Relations: Public relations (PR) is the practice of deliberately managing the
release and spread of information between an individual or an organization (such as a
business, government agency, or a nonprofit organization) and the public in order to
affect the public perception.
61. Sales promotion: Sales promotion is the process of persuading a potential customer to
buy the product. Sales promotion is designed to be used as a short-term tactic to boost
sales – it is rarely suitable as a method of building long-term customer loyalty. Some
sales promotions are aimed at consumers.
62. Product placement: Product placement is a form of advertising in which
branded goods and services are featured in a production that targets a large audience.
In exchange for product placement rights, companies may pay a production company
or studio in cash, goods, or services.
63. Celebrity endorsement: Celebrity Endorsement refers to a marketing strategy whose
purpose is to use one or multiple celebrities to advertise a specific product or service.
The primary goal, in this case, is to reach a greater audience, represented by
the celebrity's fan base.
64. Direct Marketing: Direct marketing consists of any marketing that relies
on direct communication or distribution to individual consumers, rather than through a
 third party such as mass media. Mail, email, social media, and texting campaigns are
among the delivery systems used.
65. Digital Marketing and Digital Marketing Methods (or tools): Digital marketing is
the component of marketing that utilizes internet and online based digital technologies
such as desktop computers, mobile phones and other digital media and platforms to
promote products and services. The digital marketing tools are search engine
marketing, social media marketing, search engine optimization etc.
66. Yield Management or Revenue Management: Revenue management is the
application of disciplined analytics that predict consumer behavior at the micro-market
levels and optimize product availability and price to maximize revenue growth.
67. Four Value definitions of Pricing of Service: Premium, Skimming, Economy or
Value and Penetration.
68. Boundary Spanners (Employee as): Boundary spanners are firm members who serve
as interfaces between a unit and its environment.
69. Spontaneity: Service recovery is a company's resolution of a problem from a
dissatisfied customer, converting them into a loyal customer. It is the action a service
provider takes in response to service failure.
70. Mystery Shopping: Mystery shopping is a method used by marketing research
companies and organizations that wish to measure quality of sales and service, job
performance, regulatory compliance, or to gather specific information about a market
or competitors, including products and services.
71. Service script: A service script, as defined is a detailed guide for front-line employees
to follow during a service encounter. A script includes a predetermined set of specific
words, phrases, and gestures, as well as other expectations for the employee to use
during each step of the service process.
72. Franchising: Franchising is a form of marketing and distribution in which the owner
of a business system (the franchisor) grants to an individual or group of individuals
(the franchisee) the right to run a business selling a product or providing a service
using the franchisor's business system.