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 Case Studies and Management Resources Asia's Most Popular Collection of Management Case Studies Home Business Reports Case Studies Books Services Free Resources ICMR BOOKS Business Communicatio n Business Ethics & Corp Governance Consumer Behavior  Economics for Managers Fundamentals of HRM Fundamentals of Marketing Mgmnt Global  Business Environment  Information Technology & Systems Intl. Business & Intl. Management  Intro. to Human Resource Management  Introduction to Management  Introduction to Marketing Research Intro. to Organizational Behavior  Intro. to Quantitative Services Marketing « Previous Chapter  Chapter 3 : Consumer Behavior Dif fer ences Between Characteristics Of Goods and Services Search Qualities Experience Qualities Credence Qualities Consumer Decision-Making Process Need Perception Search for Information and Perceived Risk Evaluation of Alternatives Purchase Behavior Post-Purchase Evaluation External Factors Influencing Consumer Behavior Implications For Service Providers Chapter Summary The intangibility property of services makes it difficult for customers to search for information, make a purchase decision, or even evaluate the service experience. This is due to the presence of more experience and credence qualities than search qualities in services. Hence, service providers need to deliver value added services to their customers to provide them a superior service experience. Decision-making is involved in every purchase decision, whether it is to purchase a product or a service. The decision making process in the purchase of a service involves various steps such as need perception, search for information

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 Case Studies and Management ResourcesAsia's Most Popular Collection of Management Case Studies

Home Business Reports Case Studies Books Services Free Resources

• ICMR BOOKS

○ BusinessCommunication 

○ BusinessEthics & CorpGovernance 

○ Consumer Behavior  

○ Economics for Managers 

○ Fundamentalsof HRM 

○ Fundamentalsof MarketingMgmnt 

○ Global BusinessEnvironment 

○ Information

Technology &Systems 

○ Intl. Business& Intl.Management 

○ Intro. toHumanResourceManagement 

○ Introduction toManagement 

○ Introduction toMarketingResearch 

○ Intro. toOrganizationalBehavior  

○ Intro. toQuantitative

Services Marketing

« Previous Chapter  

Chapter 3 : Consumer Behavior

Differences Between Characteristics Of Goodsand Services

Search QualitiesExperience Qualities

Credence Qualities

Consumer Decision-Making Process

Need PerceptionSearch for Information and Perceived Risk

Evaluation of Alternatives

Purchase BehaviorPost-Purchase Evaluation

External Factors Influencing Consumer BehaviorImplications For Service Providers

Chapter Summary

The intangibility property of services makes it

difficult for customers to search for information,make a purchase decision, or even evaluate the

service experience. This is due to the presence

of more experience and credence qualities thansearch qualities in services. Hence, service

providers need to deliver value added services

to their customers to provide them a superiorservice experience.

Decision-making is involved in every purchase

decision, whether it is to purchase a product or aservice. The decision making process in the

purchase of a service involves various stepssuch as need perception, search for information

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Methods ○ Intro. to Sales

Management ○ Leadership &

Change

Management ○ Management 

ControlSystems 

○ Management 

of MNCs ○ Marketing

Communication 

○ Marketing

Management ○ Operations

Management2nd Edition 

○ Project 

Management ○ Retail 

Management ○ Sales &

DistributionManagement 

○ Services

Marketing ○ Strategic

HumanResourceManagement 

○ Supply ChainManagement 

○ Managerial 

Effectiveness○ Industrial 

Marketing○ Marketing

FinancialProducts 

○ Strategic

MarketingManagement 

○ MORE

PRODUCTS

and the perceived risk, evaluation of the

generated alternatives, the purchase decision

and the post-purchase evaluation.

Further, the decision making process of thecustomer is influenced by external factors like

his family, culture, subculture, reference groups

and the social class to which he belongs.Marketers are innovating several ways to make

service experiences memorable for thecustomer.

They are also trying to retain old customerssince this is more profitable to the company

than attracting new customers. Observing buyer

behavior patterns helps marketers to targetcustomers in a better way. The technological

advances and globalization of economy make itpossible for service providers to design new

ways of providing their services.

 Next Chapter »

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LESSON 2SPECIAL CHARACTERISTICS OF SERVICES  The objective of this lesson is to have an insight into:Special characteristics of service marketing

Service Marketing MixService Marketing triangleLets understand the special characteristics of services ….SPECIAL CHARACTERISTICS OF SERVICESServices are said to have four key characteristics which impact on marketingprogrammes.These are:

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Intangibility InseparabilityHeterogeneity variability Perish ability (simultaneous production/consumption)It is helpful to consider each of these characteristics briefly:Intangibility

Services are said to be intangible - they cannot be seen or tasted, forexample. This can causelack of confidence on the part of the consumer Aswas apparent earlier, in considering pricingand services marketing, it is oftendifficult for the consumer to measure service value andquality. To overcomethis, consumers tend to look for evidence of quality and other attributes, forexample in the decor and surroundings of the beauty salon, or fromthequalifications and professional standing of the consultant.InseparabilityServices are produced and consumed at the same time, unlike goods whichmay bemanufactured, then stored for later distribution. This means that theservice provider becomesan integral part of the service itself. The waitress in

the restaurant, or the cashier in the bank,is an inseparable part of theservice offering. The client also participates to some extent in theservice,and can affect the outcome of the service. People can be part of the serviceitself, andthis can be an advantage for services marketers.Heterogeneity Invariability LESSON 2SPECIAL CHARACTERISTICS OF

SERVICES

  The objective of this lesson is to have an insight into:Special characteristics of service marketing

Service Marketing MixService Marketing triangleLets understand the special characteristics of services ….SPECIAL CHARACTERISTICS OF SERVICESServices are said to have four key characteristics which impact on marketingprogrammes.These are:Intangibility InseparabilityHeterogeneity variability Perish ability (simultaneous production/consumption)

It is helpful to consider each of these characteristics briefly:IntangibilityServices are said to be intangible - they cannot be seen or tasted, forexample. This can causelack of confidence on the part of the consumer Aswas apparent earlier, in considering pricingand services marketing, it is oftendifficult for the consumer to measure service value andquality. To overcomethis, consumers tend to look for evidence of quality and other attributes, for

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example in the decor and surroundings of the beauty salon, or fromthequalifications and professional standing of the consultant.InseparabilityServices are produced and consumed at the same time, unlike goods whichmay bemanufactured, then stored for later distribution. This means that the

service provider becomesan integral part of the service itself. The waitress inthe restaurant, or the cashier in the bank,is an inseparable part of theservice offering. The client also participates to some extent in theservice,and can affect the outcome of the service. People can be part of the serviceitself, andthis can be an advantage for services marketers.Heterogeneity Invariability

 Because a service is produced and consumed simultaneously, and becauseindividual peoplemake up part of the service offering, it can be argued that aservice is always unique; it onlyexists once, and is never exactly repeated. This can give rise to concern about service qualityand uniformity issues.Personnel training and careful monitoring of customer satisfactionandfeedback can help to maintain high standards.PerishabilityServices are perishable; they cannot be stored. Therefore an empty seat on aplane, for example, is a lost opportunity forever. Restaurants are nowcharging for reservations whichare not kept, charges may be made formissed appointments at the dental clinic. Perishabilitydoes not pose toomuch of a problem when demand for a service is steady, but in timesof unusually high or low demand service organisations can have severedifficulties.The above characteristics are generally referred to in many texts

as being what makesservices marketing so different. However, thisassumption should be queried on a number of grounds. Like all sweepinggeneralizations, generalizations concerning services marketing donot alwaysrepresent the full picture. Consider the question of tangibility. In themain,services can be broken down into three main classifications:Rentedgoods servicesConsumer-owned goods services Non-goods servicesSome of these categories involve goods which are physical, and which contribute insomeway to the service offering. This gives rise to questions about thedegree to which servicescan be classed as intangible.Another way of classifying services is to consider the distinction between equipment-basedservices and people-based services. Examples of equipment-based

services would include:Vending machines Car and tool hire AirlinesPeople-based services would include: Nursery infant careArchitects LegalservicesYet another distinction can be made between consumed services,which are offered on a personal basis, and business-to-business or industrialservices. Some service providers mayoperate in both these marketsectors:Franchised child care services may offer local services to parents,and operate in-companyschemes. Hotels may cater for the tourist and thebusiness or conference market. Privatehealth care programmes generally

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offer personal and corporate rates. On the other hand, someservices such asindustry-specific consultancy services or marine salvage operate inquiteclosely defined market sectors.4. THE NATURE OF THE SERVICE PRODUCTWhichever means of classifying services is used, and whether or not there is

agreement thatthe unique characteristics of services really represent unique

 distinctions, ultimately both physical goods and services provide benefitsand satisfactions - both goods and services are 'products' or offerings.Consider the following breakdown of service offerings:Utilities: gas, power, water Transport and communications Recreation andleisure Insurance, banking and finance Business, professional and scientificFor most of these categories it is easy to think of 'products' associated withthem; insurance policies, heating and light, package holidays and so on. Thishas implications for servicesmarketing management.As in traditionalmarketing concerned with-'tangible products, the servicesmarketingmanager needs to look closely at marketing strategy, includingsuch aspects as:The service element of the augmented product - thecharacteristics which help distinguish a product from its competitors - is nowa key factor in long-term success. Rapid developmentsin technology whichmean that firms can no longer sustain a leading edge position inthemarketplace by technological superiority alone has led to thedevelopment of service as amarketing tool for competitive advantage. Theimpact on profitability can be two-fold: profitability can increase.not onlythrough superior competitive positioning, but many service divisions nowrepresent profit centres in their own right.Another important area which is

receiving increasing attention from marketers is thenot-for-profit service"sector. Not-for-profit organisations engage in a broad sphere of activityranging from cultural, educational and political interests to social andleisure activities. Thesize of these organisations ranges from very small, localconcerns to large, multi-national