4362ch1 sp10
TRANSCRIPT
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Ch. 1 – Understanding Services Marketing
Relationships among Company, Customer, Competition:
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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
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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
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Degree of Tangibility
TangibleDominant
IntangibleDominant
saltsoft drinks
detergentsautomobiles
cosmetics
advertisingagencies
airlinesinvestment
managementconsulting
teaching
fast-food
fast-food
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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
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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
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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
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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
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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
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Characteristics of Services Vs. Goods
Rental/Access – Services provide temporary possession or access instead of ownership