Chapter 12 - Chapter 12: Service Marketing Services:...

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Chapter 12: Service Marketing Services : intangible activities or benefits (such as airline trips, financial advice, or automobile repair) that an organization provides to satisfy consumers’ needs in exchange for money or something else of value. One of the most important components of the U.S. economy; more than 42% of the gross domestic product (GDP) now comes from services. Four I’s of services : intangibility, inconsistency, inseparability, and inventory ; the unique elements to services. Intangibility : services can’t be held, touched, or seen before the purchase decision. They are much more difficult for consumers to evaluate. Inconsistency : developing, pricing, promoting, and delivering services is challenging because the quality of a service is often inconsistent. Because services depend on the people who provide them, their quality varies with each person’s capabilities and day-to-day job performance. Inseparability : in most cases, the consumer cannot (and does not) separate the deliverer of the service from the service from the service itself. The amount of interaction between the consumer and the service provider depends on the extent to which the consumer must be physically present to receive the service. Inventory : inventory carrying costs are more subjective and are related to idle production capacity : when the service provider is available but there is no demand. The inventory cost of a service is the cost of paying the person used to provide the service along with any needed equipment. Service continuum : what companies bring to the market ranges from the tangible to the intangible or good-dominant to service-dominant offerings. Classification of Services: Delivery by People or Equipment o Equipment-based services do not have the marketing concerns of inconsistency because people are removed from the provision of the service. o
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Chapter 12 - Chapter 12: Service Marketing Services:...

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