Intangible activities or benefits that an organization provides to consumers.
Services
Four I's of Service
1. Intangibility
2. Inconsistency
3. Inseparability
4. Inventory
Services can't be held, touched, or seen before purchase.
- Marketers try to make services tangible or show the benefit of using the service (e.g., American Express offers tangible card holder's points)
Intangibility
Since services depend on the people who perform them, their quality varies with each person's capabilities and performance.
Inconsistency
Consumers can't separate the deliver of the service from the service itself.
Inseparability
Inventory carrying costs are more subjective with services because of idle production capacity.
Inventory
When the service provider is available but there is no demand.
Idle Production Capacity
A range from the tangible to the intangible or good-dominate to service-dominate offerings.
Service Continuum
Services Classifications
Whether they are:
1. Delivered by a person or equipment
2. Profit or non-profit
3. Government sponsored
Purchasing Process
1. Search Properties: can be determined before purchase (clothes)
2. Experience Properties: can only be discerned after the purchase or during consumption (movie)
3. Credence Properties: may be impossible to evaluate even after purchase and consumption (P
Differences between the consumer's expectations and experience.
Gap Analysis
A flowchart of the points of interaction between consumer and service provider.
Customer Contact Audit
Five Dimensions of Service Quality
1. Reliability
2. Tangibles
3. Responsiveness
4. Assurance
5. Empathy
Provides several benefits for service customers including the continuity of a single provider, customized service delivery, reduced stress due to a repetitive purchase process, and an absence of switching costs.
Relationship Marketing
The notion that a service organization must focus on its employees before successful programs can be directed at customers.
Internal Marketing
The process of managing the entire customer experience with the company.
Customer Experience Management (CEM)
Eight P's of Services Marketing
1. Product (Service)
2. Price
3. Place
4. Promotion
5. People
6. Physical Environment
7. Process
8. Productivity
Three Important Aspects of Product/Service Element
1. Exclusivity: Services can't be patented and therefore can be copied by competitors
2. Branding: Because services are intangible, the brand name or logo of the service organization is particularly important
3. Capacity Management: Integrating the servic
Important Role of Price
1. Affects consumer perception (price = quality)
2. Can be used in consumer management (off-peak pricing)
When a service business charges different prices during different times of the day or days of the week to reflect variations in demand for the service
Off-Peak Pricing