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Lecture 5

2320 Lecture 5: Chapter10

5 Pages

Business Administration
Course Code
Business Administration 3301K
Angela White

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Services: The intangible Product Customer Service: Specifically refers to human or mechanical activities that firms undertake to help satisfy their customers needs and wants By providing good customer service, firms add value to their products and services The service sector makes up more than 70 of Canadas economy and is growing faster than the goods producing industries It is less expensive for firms to manufacture their products in less developed countries Household maintenance activities, which people performed themselves, have become quite specialized People place high value on convenience and leisure Services Marketing Differs From Product Marketing: These differences make marketing services more challenging than marketing products Intangible: Intangible: A characteristic of a service: it cannot be touch, tasted, or seen like a pure product can The most fundamental difference between a product and a service is that services are intangible Makes it difficult to convey the benefits of the service A service is also difficult to promote because it cant be shown directly to potential customers Marketing must creatively employ symbols and images to promote and sell services The image marketers use reinforce the value that the service provides Inseparable Production and Consumption: Inseparable: A characteristic of a service; it is produced and consumed at the same time that is service and consumption are inseparable Customers rarely have the opportunity to try the service before they purchase it and after the service has been performed, it cant be returned Because the purchase risk can be high, services will provide extended warranties and 100 satisfaction guarantees Inconsistent: Inconsistent: A characteristic of a serve; its quality may vary because it is provided by humans Marketers use the inconsistent nature of services to their advantage
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