NAMES PAIDAMOYO , GLENDA

SURNAME SIPANERA

PROGRAM HBBSC(MKT)

COURSE MARKETING MANAGEMENT

YEAR 4.2
1. Marketing managers must be cognizant of the unique characteristics of services:
intangibility, inseparability, variability, and perishability. 

a. How does each of these characteristics potentially impact the development and
execution of marketing plans?

The American Marketing Association defines services as - “Activities, benefits and

satisfactions which are offered for sale or are provided in connection with the sale of
goods.

1.a. 1 Intangibility

Services are intangible and do not have a physical existence. Hence services cannot
be touched, held, tasted or smelt. This most defining feature of a service makes it
difficult to price products as these might differ with the client and the service
environment, for example make up artist charge according to the customized looks
preferred by different client. This service also differs with the service environment ,
make up prices for high density suburbs starts from $3 and for the up town market
pay from $15, however this primarily differentiates it from competitors. Because
services are invisible they require tangible cues to emphasize on quality of service
and reduce risk of perceived quality, this will affect the promotional budget of the
firm.

1.a.2 Heterogeneity/Variability

Given the very nature of services, each service offering is unique and cannot be
exactly repeated even by the same service provider. While products can be mass
produced and be homogeneous it is not the same for services. For example the
service rendered in a restaurant , like Chop chop is going to vary all the time as the
customers will be different and the attitude, mood of both the service provider and
the customer will be different at every point in time. This affects the developing of
marketing plans as standards have to be put in place for all customers to pass
through the same service process , like in a bank every client has to fill in the same
document when opening an account the same goes for banking online, this will
affect the distribution through which the service is rendered and the promotional
strategies implemented.

1.a.3 Perishability

 Services cannot be stored, saved, returned or resold once they have been used.
Once rendered to a customer the service is completely consumed and cannot be
delivered to another customer. For example a customer dissatisfied with the services
of a barber , who could not produce the same design as that the client wanted
cannot return the service of the haircut that was rendered to him. Controls are then
affected by this characteristic because measures are to put in place to ensure a
dissatisfied customer has been retained .A good example would be a free haircut and
beard cut as a measure to counter this challenge.

1.a.4 Inseparability/Simultaneity of production and consumption

 This refers to the fact that services are generated and consumed within the
same time frame. For instance, a haircut is delivered to and consumed by a
customer simultaneously unlike, say, a takeaway burger which the customer may
consume even after a few hours of purchase. Moreover, it is very difficult to
separate a service from the service provider. This means Marketing
communications must be communicate effectively on time when it comes the
inseparability of the service. On the 7p’s people would be workers, these should
be adequately trained in customer service and in educating customers about
recent updates , developments to ensure the service is generated, distributed
and consumer.

1.a.5 Lack of Ownership

This refers to the fact that one cannot own a service the same way they can own
a product after a purchase. No ownership is transferred thus the reason why
companies offer soap, show gels , towels in some cases so that the customer can
have a similar experience to that experienced during the service process like in a
 hotel. This for the client to have some sense of ownership from the service
offered. This affects the promotional budget for the organizations as they need
to incorporate freebies in the budget plan.

b.       What might a manager do to mitigate any negative consequences of each

characteristic on the delivery of his or her firm’s service?

1.b.1 Intangibility
Like mentioned before a service is intangible and as a result it perceives high risk and
to reduce this risk, organizations have to create tangible cues that is tangible parts of
the service offer. In a restaurant the tangible cues are the furniture that clients will
sit on, the signs and symbols to describe where is what like bathrooms , drive
through, the menu with the available meals inside this will create a something visible
for the service offer the customer is about to experience. Managers should lead
team to focus on strong branding and promotion in different social media to cope up
with intangibility.

1.b.2 Perishability
Services are perishable , this means as soon as they are produced if the consumer is
not around to consume the service it will expire. In a saloon when a client does not
show up when they were supposed to get their hair done , the service expires. So
this becomes difficult for the service provider to match demand and supply. A way to
match demand and supply is to make reservations, bookings and fines or no refunds
for missed appointments. A missed dental appointment paid in advance has no
refund if the appointment was not canceled on time. This ensure clients meet their
appointments. Managers must train and teach team to provide the best of services
to customers every time to mitigate perishability feature
1.b.3 Variability
Services vary all the time , no one service is ever the same. This is because of various
factors like mood , attitude of both the service provider and the consumer. To limit
these variations standards have to be set , to ensure the service process is the same
for every client. For example when buying bundles, the processes are the same for
everyone, failure to do so would be lack of education by the service provider on how
to access the service like *143# gets bundles. Managers should be able to help
customers answering every query and providing standardized and quality services to
cope up with variability.

1.b.4 Production and Consumption is done simultaneous

Services are produced, distributed and consumed at the same time. Managers
should emphasize on customization of services on delivery of services and make
customers comfortable during service delivery for mitigating inseparability.
Customers needs and expectations should be met, as this will increase satisfaction
and decrease the discomfort that comes with the inseparability feature of a service.

1.b.5 Lack of ownership

No one can own a service. An example is a holiday where we simply use the services
of the holiday provider as opposed to taking physical possession of a product.

Non-ownership can sometimes make it difficult for a customer to assess and

appreciate the advantages of purchasing the service. The marketer therefore needs
to pay particular attention in emphasizing benefits of non-ownership, such as no
long-term commitment and inexpensive maintenance in promotional program mes.
c.        Come up with an example of a service encounter you have had as a
customer (either in the B2C or B2B market) in which each of these characteristics
came into play in how the service was delivered.

A service encounter is that period of time during which the customer and the service
firm interact in person (Shostack, 1985)

C.1 Introduction
The writer went to a Hairdresser to get a new hairstyle. The interaction was a face to
face service encounter, it was also a business to consumer interaction. The writer
observed and experienced some of the characteristics of the service such as
intangibility, inseparability, lack of ownership, as will be discussed.

C.2 Inseparabilty
Throughout the service delivery process, the writer and the service provider had to
be present.

C.3 Perishability
The writer made a booking at the saloon in advance to get a new hairstlye , this was
done because it is difficult to match demand and supply. Failure for booking or
meeting the booking there is a fine and there are no refunds.

C.4 Variability
Every hairstyle or process of service offering vary. The hairdresser managed to start
conversations and relate to the writer. The writer enjoyed the service experience
and the hairstyle was made in a customized way.

C.5. Lack of ownership

After the service delivery the write did not get to own anything except the new
hairstyle however the hairstylist gave the writer some head bands to wear with my
new hairstyle.

Shostack , G. L(1992) Understanding services through blue printing. In Swartz, T. A.,

Bowen, D. E. and Brown , S.W. (Eds.), Advances in Services, Marketing and
Management.