BU352 Lecture Notes - Lecture 20: Grocery Store, Marketing Mix
Document Summary
Service definition: an act or performance one party can offer to another that essentially intangible and does not result in the ownership of anything. Economic importance of services: servitzation, household maintenance become more specialized, production was cheaper in other countries, high value placed on convenience and leisure. Possessing vs. assessing products: debate has shifted towards accessing vs. possessing products, also because of economic downturn because people cannot afford to spend this money to own products requires using cues to aid customers. Services: by providing good customer service, firms add value to their products and services. The service-product continuum: service dominant for example doctors, grocery store product dominant, most offerings lie somewhere in the middle. Intangible: cannot be touched, tasted or seen, atmospheres is important to convey value images are used to convey benefit of value inseparable production and consumption, production and consumption are simultaneous. Inconsistent: customized services to meet specific needs, bundled packages, self-service technology.
