Unit 16 The Characteristics ofServices and Their RelatedMarketing Strategies
Unit 16 The Characteristics of Services and Their Related Marketing Strategies
Whatis a Service?Wedefine a product as a bundle ofsatisfactions.This definition holds aswell for servicesasfortangiblegoods.However, to be more specifica service is ainstrumental activityperformed for a consumer or aconsummatory activity involvingconsumerparticipationin,butnotownershipof,an organization'sproductorfacilities
2 What is a Service? We define a product as a bundle of satisfactions. This definition holds as well for services as for tangible goods. However, to be more specific, a service is a instrumental activity performed for a consumer or a consummatory activity involving consumer participation in, but not ownership of, an organization’s product or facilities
WhatIsaService?Wedefine aproduct asabundleof satisfactions.This definition holds as well for servicesas fortangible goods.However,to be more specific,aservice is a instrumental activity performed for aconsumer or a consummatory activityinvolvingconsumer participation in,but not ownership ofan organization's product or facilities.This definition points out thatthe reason forpurchasing our service may be very different fromthe reason for purchasing another service,Consumers purchaseinstrumental services--typically,work performed by others---to achievea goal without directly being involved in the task
◼ What Is a Service? ◼ We define a product as a bundle of satisfactions. This definition holds as well for services as for tangible goods. However, to be more specific, a service is a instrumental activity performed for a consumer or a consummatory activity involving consumer participation in, but not ownership of, an organization’s product or facilities. ◼ This definition points out that the reason for purchasing our service may be very different from the reason for purchasing another service, Consumers purchase instrumental services- typically, work performed by others- to achieve a goal without directly being involved in the task
For example,a lawn care or a home movingcompany provides instrumental services.Incontrast,a store that rents VCD/DVD moviesprovidesa consummatory servicethe consumeris directlyinvolved and immediately gratified bythe use of the service.A skiing lesson may beboth an instrumental and a conmummatoryservice.The skiing instructor performs aninstructionaltaskfor thestudent,andthe studentreceives gratification as the serviceis consumed
◼ For example, a lawn care or a home moving company provides instrumental services. In contrast, a store that rents VCD/DVD movies provides a consummatory service; the consumer is directly involved and immediately gratified by the use of the service. A skiing lesson may be both an instrumental and a conmummatory service. The skiing instructor performs an instructional task for the student, and the student receives gratification as the service is consumed
The Characteristics of Services1.intangibility2.perishability3.inseparability4.variability
5 1. intangibility 2. perishability 3. inseparability 4. variability The Characteristics of Services
The Characteristics of ServicesBoth instrumental and consummatory services havethefollowing characteristics:(1)intangibility,(2)perishability,(3)inseparability,and（4)variability. The many marketing strategies associatedwith each of these service characteristics are discussedbelow:IntangibilityMost servicesare intangible,even though their productionmaybe linked to a tangible product(the transportationservice anairline provides is tied to its fleet of airplanes,rentinga DvDmovie is tied to the temporary usage of the DvD disk,and soon).The element of intangibilitymakesthemarketingofservices differentfromthe marketingoftangible goods
The Characteristics of Services Both instrumental and consummatory services have the following characteristics: (1) intangibility, (2) perishability, (3) inseparability, and （4） variability. The many marketing strategies associated with each of these service characteristics are discussed below： ◼ Intangibility ◼ Most services are intangible, even though their production may be linked to a tangible product ( the transportation service an airline provides is tied to its fleet of airplanes, renting a DVD movie is tied to the temporary usage of the DVD disk, and so on). The element of intangibility makes the marketing of services different from the marketing of tangible goods
Intangibility means that buyers cannotseefeel, smell, hear,or taste before they conclude anexchange agreement with a seller.Because ofthis intangibility,consumers maymisunderstand the exact nature of a serviceFor most of us,something that is intangible ismore difficult to grasp than something that istangible.Evaluating the quality of somethingintangible isdifficult.To help consumersunderstand and evaluate the nature of theirservices,marketers often employ a marketingstrategy to make the intangibletangible
◼ Intangibility means that buyers cannot see, feel, smell, hear, or taste before they conclude an exchange agreement with a seller. Because of this intangibility, consumers may misunderstand the exact nature of a service. For most of us, something that is intangible is more difficult to grasp than something that is tangible. Evaluating the quality of something intangible is difficult. To help consumers understand and evaluate the nature of their services, marketers often employ a marketing strategy to make the intangible tangible
It can be argued that because consumerscannottaste,feel,smell,orwatchaproduct in operationinadvance,theypurchasepromises ofsatisfaction.Thus,implementing a strategy tomake a service tangible reguires stressing asymbolicclues or providing supplemental tangibleevidence to indicate that the promise about aservice'squality will bekeptTomake the service moretangible.promotionalmessages portray the people who providetheservice.AllState Insurance Company's slogan"You're in good hands with AllState"promotes theidea that the people and thecompany are reliable
◼ It can be argued that because consumers cannot taste, feel, smell, or watch a product in operation in advance, they purchase promises of satisfaction. Thus, implementing a strategy to make a service tangible requires stressing a symbolic clues or providing supplemental tangible evidence to indicate that the promise about a service’s quality will be kept ◼ To make the service more tangible. promotional messages portray the people who provide the service. AllState Insurance Company’s slogan “You’re in good hands with AllState” promotes the idea that the people and the company are reliable
You can see foryourself thatthesearegoodpeople;if they promise something,your can besure the promise will be fulfilled. Effectivelymarketing intangibles relies ondevelopingasymbolicappearance of competency andcredibility.Consumers should believe that whatis promised will bedelivered.The strategy of creating tangibility throughsymbols is typically implemented with brandingand through the promotion mix.However,servicemarketersoften tiephysical goods to theirservices to provideadditional tangible evidence ofthepromisedservice
◼ You can see for yourself that these are good people; if they promise something, your can be sure the promise will be fulfilled. Effectively marketing intangibles relies on developing a symbolic appearance of competency and credibility. Consumers should believe that what is promised will be delivered. ◼ The strategy of creating tangibility through symbols is typically implemented with branding and through the promotion mix. However, service marketers often tie physical goods to their services to provide additional tangible evidence of the promised service
A healthclub membershipcomes withmembership card.A dentist's gift of toothbrush isevidence that a dental servicehas beenperformed.In a hotel room,the bathroomdrinking glasses are wrapped in bags or plasticfilm,proving silent symbols communicating thatthe room has been cleaned for the guests'use
◼ A health club membership comes with membership card. A dentist’s gift of toothbrush is evidence that a dental service has been performed. In a hotel room, the bathroom drinking glasses are wrapped in bags or plastic film, proving silent symbols communicating that the room has been cleaned for the guests’ use