Documente Academic
Documente Profesional
Documente Cultură
Advice and
Communication
Bill Statements
Order Taking
Overnight
Transportation Problem Solving
Supplies and Delivery of
Packages
Tracking
Pick-up
Documentation
Characteristics of Services
Tangibility of goods and services
Implications of Intangibility
Easy to Difficult to
evaluate evaluate
Furniture
Clothing
Legal services
Medical surgery
Vacation
Motor vehicle
Computer repair
Restaurant meals
Consultancy project
High in High in High in
search experience credence
qualities qualities qualities
Strategies for intangibility
It is difficult to synchronize
supply and demand with
services
Services cannot be returned or
resold
How can demand be
managed?
Accurate demand forecasting
Develop off-peak and on-peak strategies
Use reservation systems and differential
pricing
Employ part-time staff
Extend hours of operation
Provide self-service options (i.e. ATMs,
internet banking)
Goods versus Services
Classification of Services
Based on Degree Of Customer
Involvement
( Lovelock)
1. People Processing
2. Possession Processing
3. Mental Stimulus Processing
4. Information Processing
Four Categories of Services
Based on the Process Used
People Processing Mental Stimulus
Tangible Acts Directed Processing
Toward People Intangible Acts Directed
e.g. airlines, Toward People
hospitals, hair e.g. consulting,
stylists, fitness education,
psychotherapy,
centers
broadcasting
Possession Processing Information Processing
Tangible Acts Directed Intangible Acts Directed
Toward Possessions Toward Intangible Assets
e.g. repair e.g. accounting,
services, banking, financial
landscaping, house services
cleaning services
Levels of Customer Contact with
Service Organizations
Emphasizes encounters
High with service personnel
N ursing Home
Ha irCut
4- Sta r Hotel
M a na gement Consulting
Good Resta ura nt
Telephone Ba nk ing
Airline Tra vel (Econ.)
Ca ble TV
Public Tra nsit
H ome
Ba nk ing
I nternet- ba sed
Services
Product
People (service)
Process
Place,
Place &
cyber- Customers Price
Price
Time
space Customers
Customers
& time
Promotion
Physical evidence
People
All human actors who play a part in
service delivery and thus influence
the buyer’s perceptions: namely, the
firm’s personnel, the customer, and
other customers in the service
environment.
customer
service employees
other customers
Physical Evidence
The environment in which the service is
delivered and where the firm and customer
interact, and any tangible components that
facilitate performance or communication of the
service.
•atmosphere
décor, music etc.
•equipment
•facilities
•uniforms
Process
The actual procedures, mechanisms,
and flow of activities by which the
service is delivered—the service
delivery and operating systems.
Other tangibles
The Services Marketing
Triangle
Company
(Management)
Internal External
Marketing Marketing
“enabling the “setting the
promise” promise”
3 C’s
Customers Competitors Company
Market Intelligence
S T P
Segment Target Position
Product Promotion
4 P’s
Price Place
Challenges for Services