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  1. Service
    • Services: are acts, efforts, or performances exchanged from producer to user without ownership rights
    • Satisfies needs by providing pleasure, information, or convenience
    • Often more cost effective for organizations to hire outside firms that specialize in these services than to hire a workforce and handle the tasks themselves
  2. Characteristics of Services
    • Intangibility
    • Perishability
    • Variability
    • Inseparability
  3. Intangibility
    • Customers can’t see, touch, or smell good service
    • Customers look for reassuring signs before they purchase so marketers must ensure that these signs are readily available
    • Providing physical cues to reassure the buyer
    • “look” of the facility, its furnishing, logo, stationary, business cards, the appearance of its employees, or well designed advertising and Web sites
  4. Perishability
    • the characteristic of a service that makes it impossible to store for later sale or consumption (case of use it or lose it)
    • Marketers try to avoid these problems when they use the marketing mix to encourage demand for the service during slack times
  5. Perishability
    Capacity management:
    • process by which organizations adjust their services in an attempt to match supply with demand
    • Adjusting the product or price
  6. Variability
    • Over time even the same service the same individual performs for the same customer changes
    • Difficult to standardize services because service providers and customers vary
    • Don’t want standardization when we purchase a service
    • Customers often appreciate the one that customizes its service for each individual
  7. Inseparability
    • it is impossible to separate the production of a service from the consumption of that service
    • Service encounter: interaction between the customer and the service provider
    • Distermediation: eliminating the interaction between customers and salespeople so as to minimize negative service encounters and reduce costs (ex: self-service gas pumps)
  8. Goods-Dominated Products
    Services may be even more important for marketers of business-to-business tangibles
  9. Equipment or Facility Based Service
    • --Mixture of tangible and intangible elements
    • --Operational factors: clear signs and other guidelines must show customers how to use the service
    • --Minimize waiting times
    • --Locational factors: make sure their services sites are convenient and in neighborhoods that are attractive to prospective customers
    • --Environmental Factors: operate a storefront service that requires people to come to their location realize they must create an attractive environmental to lure customers
    • --Create a pleasant environment as part of their
    • marketing strategy
  10. People Based Services
    • Intangible end of the continuum are people based
    • People have less and less time to get things done, the importance of people based services increase
Card Set:
2011-11-19 05:11:35
Chapter 10

Services and Other Tangibles
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