View
129
Download
0
Embed Size (px)
DESCRIPTION
Citation preview
Ch. 1 – Understanding Services Marketing
Relationships among Company, Customer, Competition:
Services
• Services: deed, performance, or effort
•Services are not things, yet they often rely on things for their performance
•Provides added value (e.g., convenience, amusement, timeliness, comfort, or health) that are essentially intangible
What are Services?You pay for hotel room.You pay for the physical therapist to work on your knee.You pay to see a movie.
1. No ownership
2. What are you paying for? Value
Degree of Tangibility
TangibleDominant
IntangibleDominant
saltsoft drinks
detergentsautomobiles
cosmetics
advertisingagencies
airlinesinvestment
managementconsulting
teaching
fast-food
fast-food
What are the tangible and intangible components provided by a hotel?
TANGIBLE• Furniture• Lighting• Cleanliness• Carpeting• Parking spaces
Key determinant of whether product should be classified as product or service: tangibility
INTANGIBLEInteraction with front deskAnticipate needsPrompt replyTraining received by staff
Characteristics of Services Vs. Goods
Intangibility – most services cannot be seen, touched, held, or put on a shelf.
Implications:• Greater perceived risk in purchasing• Need to add tangible elements
Characteristics of Services Vs. Goods
Inseparability – for most services, production and consumption of service occur simultaneously. Customers may be involved in co-production.
Implications:• Manage customer roles in the service
interaction• Employees affect the service outcome
Characteristics of Services Vs. Goods
Variability – difficult to standardize the quality of service performance
Implications:• Difficult to provide consistently excellent
service• Recognize importance of customer service
skills. Service is a live performance
Characteristics of Services Vs. Goods
Perishability – Most services cannot be produced and stored before consumption. They exist only at the time of their production.
Implications:• Customers may be turned away or have to
wait. We dislike waiting
Characteristics of Services Vs. Goods
Rental/Access – Services provide temporary possession or access instead of ownership