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Services

This presentation discusses the concept of service products, the similarities and differences between goods and services, and the four main characteristics of services. It also outlines the major issues that marketers must address for each characteristic and describes the main methods used to address these issues.

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Services

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  1. 12 Services

  2. 12 Services Objectives 1. Elaborate on the discussion of products by exploring the “service product”. 2. Discuss the similarities and differences between goods and services. 3. Explain the four main characteristics of services. 4. Outline the major issues that must be addressed by marketers for each of the characteristics. 5. Describe the main methods marketers use to address these issues. 12-1

  3. 12 Services Service • A product without physical characteristics; a bundle of performance and symbolic attributes designed to produce consumer want satisfaction. 12-2

  4. 12 Services Tangle and Intangible Attributes Tangible Attributes Those attributes that can be experienced by the physical senses, such as sight, touch, and smell. Intangible Attributes Those attributes that cannot be experienced by the physical senses. 12-3

  5. 12 Services Figure 12.1 The Tangibility Spectrum 12-4

  6. 12 Services Search Qualities Physical qualities that enable products to be examined and compared. This eases the task of choosing among them. Experience Qualities Characteristics of products that can be assessed mainly through using them. Credence Qualities Qualities for which, even after purchasing, the buyer must simply trust that the supplier has performed the correct service. 12-5

  7. 12 Services Characteristics of Services 1. Intangibility 2. Inseparability of Production and Consumption 3. Heterogeneity 4. Perishability 12-6

  8. 12 Services Figure 12.2 Intangibility and Customer Evaluation 12-7

  9. 12 Services Inseparability of Production and Consumption Inseparability A characteristic of services in which the product is produced and consumed simultaneously. 12-8

  10. 12 Services Table 12.1 Unique Service Features and Resulting Marketing Problems and Solutions (1 of 2) 12-9a

  11. 12 Services Table 12.1 Unique Service Features and Resulting Marketing Problems and Solutions (2 of 2) 12-9b

  12. 12 Services Other Strategies in Services Marketing Internal Marketing A marketing effort aimed at those who provide the service so that they will feel better about their task and therefore produce a better product. 12-10

  13. 12 Services Other Strategies in Services Marketing Interactive Marketing Term used to describe the inter-relationship between the employee and the customer. 12-11

  14. 12 Services Figure 12.3 Services Marketing Triangle Organization (management) Internal marketing External marketing Employees Interactive marketing Customers 12-12

  15. 12 Services Figure 12.4 A Model of Service Quality 12-13

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