Title: 11 Key Terms
Course: Principles of Marketing > Section: Chapter 11

Key Terms

assurance

in terms of the RATER model, the degree to which an organization inspires trust in its customers

communication gap

in the Gap Model of Service Quality, the variance between what is communicated to the customer and their actual experience

customer gap

in the Gap Model of Service Quality, the variance between the customer’s expectations and their perception of the service

customer loyalty

an ongoing positive relationship between a customer and a business that drives repeat purchases

customer satisfaction

a measurement that determines how happy customers are with a company’s products, services, and capabilities

delivery gap

in the Gap Model of Service Quality, the difference between the experience specification and the actual delivery of the service

empathy

in terms of the RATER model, focusing on customers attentively to assure they receive caring and distinguished service

employee retention

an organization’s ability to retain its employees and stop employees from leaving

employee satisfaction

the level of happiness and contentment employees have about their jobs and the work environment

equipment-based services

when machinery or equipment plays the primary role in the service delivery

external service marketing

the action of promoting or selling services to customers and potential customers

external value proposition

the value companies promise to deliver to customers post-purchase

GAP Model of Service Quality

theoretical marketing model that helps to identify the gaps between the perceived service and the expected service

information processing

intangible actions directed at a customer’s assets, such as insurance or consulting

intangible

unable to be seen, tasted, felt, smelled, or heard

interactive service marketing

the communication between the service provider and the customer; also called a service encounter

internal service marketing

satisfying employees to motivate them to work as a team to satisfy customers

internal service quality

the perceived level of satisfaction an employee experiences with services offered by internal service providers

knowledge gap

in the GAP Model of Service Quality, the difference between what customers expect and what managers think they expect

mental stimulus processing

situation in which the services interact with the customer’s mind rather than the body

people processing

services in which the customer is the direct recipient of the service and production and consumption are simultaneous

people-based services

tasks in which people, rather than equipment or machinery, play a major role in the delivery of the service

policy gap

in the GAP Model of Service Quality, the difference between managers understanding customer needs and being able to turn that into service delivery practices

possession processing

services in which the service is directed toward the customer’s physical possessions

productivity

the efficiency and output of employees

RATER framework of service quality

theoretical model that focuses on the five dimensions of service excellence: reliability, assurance, tangibles, empathy, and responsiveness

reliability

in terms of the RATER model, the organization’s capability to produce an accurate, dependable, and on-time service

responsiveness

in terms of the RATER model, promptness and willingness to provide satisfactory and quick service

service encounter

a consumer’s direct contact with a service provider

service inseparability

concept where services must be produced and consumed concurrently

Service Marketing Triangle

a visual representation of a strategic model that outlines the importance of people in a company’s ability to keep its service promises

service perishability

concept that states services cannot be stored in inventory for future use or sale

service variability

concept that states the quality of the service depends on who, when, where, and how it is provided

service-profit chain model

model that establishes relationships between profitability, employee satisfaction, loyalty, and productivity

services

nonphysical, intangible economic activities

tangibles

in terms of the RATER model, the physical appearance of both the facility and its employees