BUAD301 Lecture Notes - Lecture 5: Toothpaste, Stock Keeping Unit, Barcode

• School: University of Delaware
• Department: Business Administration
• Course: BUAD301
• Professor: Patrick Joseph Costigan

Document Summary

Intangibility: services are intangible-- they cannot be held, touched, or seen before the purchase decision. Inseparability: consumers cannot separate the deliverer of the service from the service itself. Inconsistency: because services depend on the people who provide them, their quality varies with each person"s capabilities and day-to-day performance. Inventory: problems exist with goods because many items are perishable and there are costs associated with its handling and movement. Idle production capacity: is when the service provider is available but there is no demand for the service. Gap analysis: is a type of analysis that compares the difference between the consumer"s expectations about experiences with a service based on dimensions of service quality. Airline customers judging service quality by reliability (flight arrival on time), tangibility (cleanliness of plane, baggage area, gate) etc. For services where consumers are observers (i. e. zoo or museum) conducting research to improve service quality is difficult.