Exam 1 Notes - UNIT 1 More than 80% of the gross domestic...

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More than 80% of the gross domestic product in this country arise from the service sector. Services: intangible activities or benefits that an organization provides to consumers in exchange for money or something of value -health care, progressional services, hospitality, travel, other IBM- who cares? Service continuum-as companies look at what they bring to the market, there is a range from tangible to intangible or good-dominant to service dominant offerings. Every company provides a portion of each 99% intangible _________________________________________99% tangible all companies are composed of a collection of tangible and intangible offerings. Ex: salt 99% tangible Ex: interaction with sales person ½ satisfaction is based on tangible portion (food) ½ is based on service (intangible) fast food is at central of continuum Challenges for Services: -defining and improving quality -communicating and testing new services -communicating and maintaining a consistent image (photo taking a bath in the mop sink of BK) (KFC) -motivating and sustaining employee commitment (employee turnover is quite high) -setting prices -standardization versus personalization (uniform is cheaper, personalization is more expensive) in the US doctors leave surgical tools 15hundred inside humans a year Marketing Goods and Services 1. Implications of Intagibility -services cannot be inventoried -services cannot be patented (dicks becoming personal trainers) -services cannot be readily displayed or communicated credence quality something that is difficult to evaluate even after purchase. Ex:VT life more fulfilled because you graduated from here. But is that true? That entails credence quality, is your life really better off because you went to Virginia Tech. -pricing is difficult.
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Exam 1 Notes - UNIT 1 More than 80% of the gross domestic...

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