ECON 1050 Lecture Notes - Lecture 12: Personal Selling, Servqual, Internal Communications
6 Jan 2016
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Mcs 1000 chapter 12 notes - managing services. Intangibility- the cannot be held, touched, or seen before the purchase decision. Inconsistency- developing, pricing, promoting, and delivering services is challenging because the quality of a service is often inconsistent. The first is inseparability of production and consumption. The second is the customer cannot separate the deliverer of the service from the service itself. Inventory- inventory problems exist with goods because many items are perishable, and thee are costs associated with handling inventory. With services, idle production capacity which is when the service provider is available but there is no demand. Service continuum- a range from the tangible to the intangible or goods- dominant to service-dominant offerings available in the marketplace. A business typically has core service and a supplementary service. Tangible goods have search qualities like colour, size and style which can be determined before the purchase. Services typically have experience qualities which can only be found out after purchase.
