What is retail?
Places you can get a product directly from the store (small scale)
What does the Moslow pyramid show?
Importance of needs and services. Used in management to understand humans’ aspirations and behavior.
What is a service?
All economic activities in which the primary output is neither a product nor construction.
Name the differences between services and goods
Services
- Activity or process
- Intangible
- Simultaneous production and consumptions possible
- Heterogeneous (different needs per customer)
- Cannot be kept in stock
Goods
- Physical objects
- Tangible
- Separation between consumption and production
- Homogenous (same needs per customer)
- Can be kept in stock
Name the 4 service characteristics
- Intangibility - (Services cannot be touched)
- Inseparability - (Services cant be separated from its providers)
- Variability - (Quality of service depends on who provides it)
- Perishability - (Services cannot be stored)
What is SOR ? (Model of consumer behavior)
SOR = Stimuli Organism Response
Stimuli = Can be observed (what influences people, price, products, etc)
Organism - Cannot be observed (black box)
Response - Can be observed (product choice, payment method, etc)
There is NO link between stimuli and response
Name 4 methods to reduce consumers perceived risks
- Seeking for information from trusted sources/people
- Internet search (reviews, forum posts)
- Relying on a firm with a good reputation
- Looking for guarantees or warranties by the firm
Name 4 methods to reduce service firms perceived risks
- Encourage customers to preview the service through their company website + videos
- Encourage customers to visit service facilities upfront
- Offer free trials
- Offer service guarantees
The expectancy-disconfirmation model of satisfaction
Explain it!
- Perceived performance < expectations = dissapointment
- Perceived performance = expectations = satisfied
- Perceived performance > expectations = delighted
What’s the main focus of physical goods (quality)?
Focus on the end quality
Tell me more about service quality
- There is no clear end product
- More blurry and difficult to measure.
The reason is that the perceived service is radically different sometimes then what was expected.
What are the 5 criteria for evaluating service quality?
- Reliability - The service is reliable
- Responsiveness - The ability to provide prompt service.
- Assurance - Customers are trusting the service
- Empathy - Caring attention to the customer
- Tangibles - Services are intangible mostly, therefore it’s important that the tangible parts are done very well.
How do you standardize (and why) employee behavior?
By using scripts.
This makes sure (see airline company for example) that a certain standard of quality towards the customer is being maintained.
Name the hierarchy of strategy and explain
- Corporate strategy - Stability & growth (mainly financial targets)
- Business strategy - Improvement of the competitive position
- Functional strategy - Maximize business productivity.
What are the 4 principles of positioning?
- A company must establish a position in the mind of its targeted customer.
- The position should be a singular and simple (slogan (das Auto)
- The position must set the company apart from its competitors.
- The company must focus on some things and can’t focus on everything / every market user.
Example: LinkedIn did this by focussing on the professionals networking market.
