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20 Cards in this Set

  • Front
  • Back

Distinguishing Characteristics of Services

Intangibility


Heterogeneity


Inseparability


Perishability

Distinguishing Characteristics of Services



INTANGIBILITY

Services cannot be touched or sensed in the same manner as physical goods

Distinguishing Characteristics of Services




HETEROGENEITY

Reflects the variation in consistency from one Service Transaction to the next

Distinguishing Characteristics of Services



INSEPARABILITY

Reflects the interconnections among the service provider, the customer involved in receiving the service, and other customers sharing the service experience

Distinguishing Characteristics of Services




PERISHABILITY

Services cannot be saved, their unused capacity cannot be stored and they cannot be inventoried

Service Marketing Challenges - INTANGIBILITY

Lack of Service Inventories


Lack of Patent Protection


Difficulty in Displaying or Communicating


Pricing Difficulties

Solutions to INTANGIBILITY Concerns




Lack of Service Inventories

Use of Tangible Cues



Solutions to INTANGIBILITY Concerns




Lack of Patent Protection

Use of Personal Sources of Information to Help Spread the Word

Solutions to INTANGIBILITY Concerns



Difficulty in Displaying or Communicating Services

Creation of Strong Organizational Images to Reduce Risk

Solutions to INTANGIBILITY Concerns




Pricing Difficulties

Utilize Activity-Based Costing (ABC) Approach

Service Marketing Challenges - HETEROGENEITY

Issues with Standardization and Quality Control




Moods & Skills Differ from Day to Day and from One Personnel to Another *

Solutions to HETEROGENEITY Concerns

Standardization – providing the same service to all customers to achieve consistency (faster, less expensive, more consistent)


vs.




Customization – meeting each customer’s exact specifications

Service Marketing Challenges - INSEPARABILITY

Physical Connection of the Service Provider to the Service


Involvement of the Customer in the Production Involvement of the Other Customers in the Special challenges in Mass Production of Services

Solutions to INSEPARABILITY Concerns




Physical Connection of the Service Provider to the Service





Selecting and Training Public Contact Personnel

Solutions to INSEPARABILITY Concerns




Involvement of the Customer in the Production Process

Effectively Managing Consumers

Solutions to INSEPARABILITY Concerns




Involvement of the Other Customers in the Production Process

Use of Multisite Locations

Service Marketing Challenges - PERISHABILITY

Demand exceeds supply of service available Demand exceeds optimal levels of supply


Lower Demand than Supply Levels

Solutions to PERISHABILITY Concerns




Demand exceeds supply of service available

Managing Service Demand - Creative Pricing



Managing Service Supply- Use Part Time Employees

Solutions to PERISHABILITY Concerns




Demand exceeds optimal levels of suppl

Managing Service Demand-Reservation Systems




Managing Service Supply - Share Capacity with other Providers

Solutions to PERISHABILITY Concerns




Lower Demand than Supply Levels

Managing Service Demand


Shift Demand to Complementary Services


Utilize Non-Peak Demand Periods to Prepare for Peak Demand Periods




Managing Service Supply


Prepare for Expansion in Advance


Utilize 3rd Parties to Increase Supply Sources


Increase Customer Participation