Chapter 12 outline - Services- intangible activities or...

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Services- intangible activities or benefits than an organization provides to satisfy consumers needs in exchange for money or something else of value The 4 I’s of Service (1) Intangibility services are intangible’ they cant be touched or seen before the purchase decision. To help consumers asses and compare services, marketers try to make them tangible or show the benefits of using the service (a) Ex. American Express provides tangible benefits by allowing card members to earn points redemption of airline tickets, electronics, etc. (b) How to reduce? ex. BRAND Membership rewards points (2) Inconsistency developing pricing, promoting, and delivering services is challenging because the quality of service is often inconsistent. Because service depends on the people who provide them, their quality varies based on each persons capabilities and performance (3) Inseparability the consumer cannot separate the deliverer of the service from the service itself . the amount of interaction between consumer and service depends on the extent to which the consumer must be physically present to receive the service (a) Ex. to receive an education, a person must attend college (4) Inventory problems exist with inventory because many items are perishable and because
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This note was uploaded on 03/25/2011 for the course MARKETING 630:301 taught by Professor Bhatia during the Spring '11 term at Rutgers.

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Chapter 12 outline - Services- intangible activities or...

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