Slide \u00a92004 by Christopher Lovelock and Jochen WirtzServices Marketing 5/E
What Makes Service Pricing Strategy Different
\ue000No ownership of services--hard for firms to calculate
financial costs of creating an intangible performance
\ue000Variability of inputs and outputs--how can firms define a
\u201cunit of service\u201d and establish basis for pricing?
\ue000Many services hard for customers to evaluate--what
are they getting in return for their money?
\ue000Importance of time factor--same service may have more
value to customers when delivered faster
\ue000Delivery through physical or electronic channels--may
create differences in perceived value