ADMS 4275 Lecture Notes - Lecture 3: Activity-Based Costing, Intangibility, Salad Bar
20 Oct 2016
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Document Summary
Service dominant logic philosophical viewpoint that the primary role of marketers is to delivery service. Goods are simply a means of rendering a service to a customer. Intangibility distinguishing characteristic of service that make them unable to be touched/sensed in the same manner as goods. E. g. movie ticket vs a pair of shoes. Marketing challenges created by intangibility: lack of service inventories services cannot be inventoried. Supplies of services cannot be stored as buffers against periods of high demand. Inability to maintain an inventory translates into supply and demand problems (cid:858)perisha(cid:271)ility(cid:859: services lack patent protection services cannot be patented, services are difficult to display/communicate promotion of services is difficult. How do you get customers to notice it if you cannot see it: services are difficult to price cannot do cost plus pricing because there is no cost of goods sold!
