MKTG1203 Study Guide - Final Guide: Micromarketing
Services – The Intangible Product
Characteristics of Services:
• Intangible
o Cannot be touched, tasted or seen
o Difficult to convey benefits of service
o Service providers → offer cues to help customers experience and
perceive service more positively
o Difficult to promote → cannot be shown directly to customers
o Marketers use images/symbols to reinforce benefits
• Inseparable production and consumption
o Customers rarely have opportunity to try before they buy
o Service can’t be returned after it has been performed
o Service firms provide extended warranties and 100% satisfaction
guarantees
• Heterogenous
o Variability in service’s quality
o Micromarketing segmentation strategy → customize service to
meet customers needs exactly
• Perishable
o Cannot be stored for use in the future
o Provides challenges/opportunities to marketers in terms of
matching supply and demand
Service Gaps Model:
• Knowledge gap
o Understanding expectation of customers
o Firms undertake customer research and increase
interaction/communication between managers and employees
o Customer expectations based on knowledge and experience
o Expectations vary between types of service and situation
o Service quality → customers’ perceptions of how well a service
meets/exceeds expectations → difficult to evaluate
o 5 distinct service dimensions
▪ Reliability → ability to perform service dependably and
accurately
▪ Responsiveness → willingness to help customers and
provide service
▪ Assurance → knowledge and courtesy of employees to
convey trust and confidence
▪ Empathy → individualized attention provided to customers
▪ Tangibles → appearance of facilities, equipment, etc.
o Expectations based on perception of how service falls within
service dimensions
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