Chapter 12 - Day 20 student

Chapter 12 - Day 20 student - CHAPTER 12 Services and...

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CHAPTER 12 Services and Nonprofit Organization  Marketing © iStockphoto.com/Rafael Ramirez Lee
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LO 1 Discuss the importance of services to the  economy LO 2 Discuss the differences between services and  goods LO 3 Describe the components of service quality  and the gap model of service quality Learning Outcomes
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LO 4 Develop marketing mixes for services LO 5 Discuss relationship marketing in services LO 6 Explain internal marketing in services LO 7 Discuss global issues in services marketing LO 8 Describe nonprofit organization marketing  Learning Outcomes
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What Is a Product? Everything, both favorable and unfavorable, that a person receives in an exchange. u Tangible Good u Service u Idea Product
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Service The result of applying human or mechanical efforts to people or objects. Services involve a deed, a performance, or an effort that cannot be physically possessed Service The marketing process is the same for all types of products,  whether they are goods or services.  Services have some unique  characteristics and marketing strategies need to be adjusted for these characteristics
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The Importance of Services   10 20 30 40 50 60 70 80 90 100 80% Services as a percentage of employment  (Projected by 2018) Services Deed Performance Effort
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How Services Differ from Goods Intangible Inseparable Heterogeneous Perishable Services cannot be touched, seen,  tasted, heard, or felt in the same way  as goods.  Services cannot be stored  and are easy to duplicate. Services are often sold, produced,  and consumed at the same time.   Consumers are involved in the  production of the services that they  buy. Services are less standardized and  uniform than goods. May vary  between service providers or  between times of the day or week. Services cannot be stored,  warehoused, or inventoried.   If not used, the revenue is lost.
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u Search Qualities- can be easily assessed before purchase.  (Services tend to have fewer of these.)   u Experience Qualities – can be assessed only after use.  u Credence Qualities –  characteristics a consumer may have   difficulty assessing even after purchase  because they do not have the necessary  knowledge or experience. 
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This note was uploaded on 02/12/2012 for the course SCM 301 taught by Professor Montabon during the Spring '11 term at Iowa State.

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Chapter 12 - Day 20 student - CHAPTER 12 Services and...

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