Grasping the Uniqueness of Services Marketing. Copyright © Houghton Mifflin Company. All rights reserved.1 - 2 Definition of Services A service is "a

Grasping the Uniqueness of

Services Marketing

Copyright © Houghton Mifflin Company. All rights reserved. 1 - 2

Definition of Services

• A service is "a deed, a performance, an effort" (Rathmell 1966).


Characteristics of Services

• Intangibility - A service cannot be seen, touched, held, or put on a shelf.

• Simultaneity/Inseparability – For most services, the production and consumption of the service performance occur simultaneously.

• Heterogeneity – It is hard for a service organization to standardize the quality of its service performance.

• Perishability – Most services cannot be produced or stored before consumption. They exist only at the time of their production.


Marketing of Services

• Intangibility - The product is a process, a deed or a performance; therefore,• For the customer: Perceived risk is

higher; harder to evaluate before (even during or after the service).

• For the marketer: Harder to help customer visualize the product and differentiate from the competition.


Marketing of Services (cont’d)

• Simultaneity/Inseparability - The provider and the customer are part of the product; production and consumption are simultaneous and inseparable; therefore,• For the customer: Some interaction with the

service provider is necessary and sometimes product is shared with other customers.

• For the marketer: Customers are co-producers, and their interaction and roles have to be managed.


• Heterogeneity - The product varies across customer, provider, and for the same provider and customer from one consumption occasion to the next; therefore,• For the customer: Consistency of product

quality is always suspect, and service provider relationship is critical.

• For the marketer: Customization is an opportunity; and frontline operations and customer skills training is critical.



• Perishability - The product cannot be stored and can be produced only after customer initiates; therefore,• For the customer: Product needs to be

available and produced when necessary.

• For the marketer: Supply must match demand; otherwise (revenue) opportunity to produce is lost; the task is to manage rather than build demand.



Classifications Based on Services Fields

• Health Care Services

• Financial Services

• Professional Services

• Educational and Research Services

• Hospitality, Travel, and Tourism Services

• Sports, Arts, and Entertainment Services

Source: Fisk & Tansuhaj (1985)


Classifications Based on Services Fields (cont’d)

• Telecommunication Services

• Channel, Physical Distribution, Rental and Leasing Services

• Personal and Repair and Maintenance Services

• Governmental, Quasi-Governmental, and Non-Profit Services


Classifications Based on Services Customers

• Consumer services – provided to customers who are purchasing for their own personal needs.• Prominently visible in any community.

• Business to business services – provided to customers who are purchasing on behalf of their organizations. • Rarely seen by the general public.


Lovelock's Classification

• Tangible acts on a person - Services such as health care, personal care, vacations, hotels, and airlines.

• Intangible acts on a person - Services such as education, entertainment shows, and legal services.

• Tangible acts on a thing - Services such as house cleaning, appliance repair, landscaping services, etc.

• Intangible acts on a thing - Services such as financial and insurance services and tax preparation.



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Understanding the Fundam entalCharacteristics of Services

PositioningTarget MarketMarketing M ix

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Grasping the Uniqueness of Services Marketing. Copyright © Houghton Mifflin Company. All rights reserved.1 - 2 Definition of Services A service is "a