MKTG10001 Lecture Notes - Lecture 18: Intangibility
3 Jun 2018
School
Department
Course
Professor
MKTG10001 Semester 1 – Services Marketing: Differences & Solutions
Reasons for growing Interest in Services Marketing
• Absolute & relative growth of service industries compared to other sectors in
economy
• Deregulation of many service industries e.g. banking, airlines, telcos
(telecommunications)
• Professional services changing to a marketing orientation
• Intensification of competition in existing service industries
• Changing demographic & socio-economic profile of Australian society
• Increased use of 'service dominant logic' business models
Problems faced by Services Marketers
1. Intangibility
2. Inseparability
3. Variability
4. Perishability
1. Intangibility
• Core offering of service company is performances, not objects
• Often cannot see, feel, taste, or touch services
o Goods can be evaluated objectively prior to purchase i.e. search
properties
o Services must be evaluated subjectively prior to purchase i.e.
experience & credence properties e.g. travelling internationally to go to
a university is decided by a travel agent, but has not personally visited
the univerisity
• E.g. cinema experience includes evaluation of:
o Treatment by service employees
o Behaviour of other customers
o Condition of "servicescape"
• Tangibility spectrum
