MKTG 302 Ch 12 Services and Nonprofit Organization Marketing.docx

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Services and Nonprofit Organization Marketing Services are intangibles. They are not physical objects and cannot be touched. Although some services may have a physical component to them. A restaurant is a service and its food is a physical component. Examples of services include education, entertainment, tourism, and consulting. It is an important segment that continues to grow. Today, more than half of the US economy is service-based. Services as opposed to goods, have 4 distinct characteristics. We now look at these characteristics and their implications for marketing. Intangibility: this is the defining characteristics and has implications on how a service can be evaluated. A search quality is a characteristic that can be assessed before the purchase. As in the case of academic degrees held by physicians. But as compared to goods, services have fewer search qualities making it difficult to evaluate services. Experience quality is a characteristic that can be assessed only after experiencing the service such as the quality of meal at a restaurant. Finally, credence quality is difficult to assess even after experiencing the service as in the efficacy of a strategic recommendation made by a consultant. Another recommendation could have achieved better results and one may never know. Intangibility and the difficulty in evaluating services makes it challenging for marketers to convey the service quality. As such, they often rely on rating agencies or opinions of others to impress the quality of their offering. Inseparability: unlike goods, in services the service provider is inseparable from the service provided. Thus, the quality perceptions of the service depend on the perceptions of the provider. So, service companies go to great lengths to train their employees to create a positive experience.
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  • Fall '19
  • Non-profit organization, Intangibility, Nonprofit Organization Marketing

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