Coursehero >> North Carolina >> University of North Carolina, Wilmington >> MGT 357

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of Characteristics Service Environments Mgt 357 Galbraith Summer, 2008 Intangibility of Services Differences in customer evaluation How do different people evaluate a going to the movie experience? Forced to sell a promise What is the promise made when going to a restaurant? Difficult to advertise and display a promise Prices are difficult to set and justify On the average, do you think a $8.00 movie price is worth it? Why or why not? Hard to separate channel from service Inseparability of Services Consumer does not take physical possession Consumers must participate in the production of the experience How do you participate in the production process of going to a restaurant? At a night club, how do other consumers affect the outcome of the experience? consumers Other affect the outcome Services are difficult to distribute Perishability and Heterogeneity Services can not be inventoried Hard to balance supply and demand Demand is time sensitive How does an ER room in a hospital manage supply and demand? Unused capacity is lost forever Key to frequent flyer programs Service quality is difficult to define and control Difficult to standardize service delivery What methods are used to standardize service in food service industry? Customer Contact Issues Initial use and retention are different Goodwill must be established and maintained But hare to measure and value Hard to establish, but easy to lose examples? Service provider skills and relationship management are key issues

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