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Unformatted text preview: Chapter 12 Services Services- Intangible activities or benefits that an organization provides to consumers in exchange for money or something of value Four Is of Service o Intangibility: services cannot be held, touched, or seen before purchasing Marketers try to make them tangible to consumers Because tend to be a performance, much more difficult for consumers to evaluate o Inconsistency : the quality of a service is often inconsistent Services depend on the people who provide them Quality varies with persons capabilities and day-to-day job performance Services are much more inconsistent than goods Try to reduce through standardization and training o Inseparability: in most cases the consumer cannot separate the deliverer of the service from the service itself This is dependant on the amount of interaction as well as the requirement of physical presence to receive the service o Inventory: service inventory costs are more subjective than goods Goods have to be handled and tend to be perishable With services, inventory carrying costs are more subjective and related to: Idle production capacity : when the service provider is available but there is no demand Very low- commission; high- airline and hospitals Service Continuum o Most companies offer a range of tangible to intangible (or good-dominant to service-dominant) offerings o Distinguishing between core product and supplementary services o Fig. 3Fig....
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- Spring '07