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Service vs Goods

Service vs Goods

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Published by Nitin Mahindroo
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Published by: Nitin Mahindroo on Feb 21, 2013
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02/21/2013

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Service Marketing

Service Vs Goods

architectural • Financial Services – banking. insurance • Hospitality – restaurant. pest control. theme park • Others – hair styling. interior design . counseling services. legal. investment advising. eye care • Professional Services – accounting. medical practice. travel agency.Examples of Service Industries • Health Care – hospital. lawn maintenance. dentistry. bed & breakfast – ski resort. hotel/motel. plumbing. health club. rafting • Travel – airline.

Types of Service • Services as products • Customer service • Derived service –Core product –Tangible product –Augmented Product .

V. “A Conceptual Model of Service Quality and Its Implications for Future Research. Zeithaml. pp. 41–50. Berry. Parasuraman. .” Journal of Marketing 49 (Fall 1985). and L.Goods versus Services Source: A.A. L.

Characteristics of Services Compared to Goods Intangibility Heterogeneity Simultaneous Production and Consumption Perishability .

Implications of Intangibility • Services cannot be inventoried • Services cannot be easily patented • Services cannot be readily displayed or communicated • Pricing is difficult .

Implications of Heterogeneity • Service delivery and customer satisfaction depend on provider and customer actions • Service quality depends on many uncontrollable factors • There is no sure knowledge that the service delivered matches what was planned and promoted .

Implications of Simultaneous Production and Consumption • Customers participate in and affect the transaction • Customers affect each other • Employees affect the service outcome • Decentralization may be essential • Mass production is difficult .

Implications of Perishability • It is difficult to synchronize supply and demand with services • Services cannot be returned or resold .

operations. and human resource efforts • Setting prices • Finding a balance between standardization versus personalization • Ensuring the delivery of consistent quality .Challenges for Services • Defining and improving quality • Designing and testing new services • Communicating and maintaining a consistent image • Accommodating fluctuating demand • Motivating and sustaining employee commitment • Coordinating marketing.

Expanded Marketing Mix for Services .

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