COMMERCE 2MA3 Study Guide - Final Guide: Intangibility
27 Apr 2018
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Chapter 10: Services – the Intangible product
Service:
Any intangible offering that cannot be physically possessed.
Customer Service:
Specifically refers to human or mechanical activities firms undertake to help satisfy
their customers’ needs and wants.
Service vs. Product Marketing
Intangibility
o A characteristic of a service; it cannot be touched, tasted, or seen like a pure
product can.
Inseparable (production and consumption)
o A characteristic of a service: it is produced and consumed at the same time—
that is, service and consumption are inseparable.
Inconsistent
o A characteristic of a service: its quality may vary because it is provided by
humans.
o Training, standardization, self-serve tech, replace people with machines
Inventory
o A characteristic of a service: it is perishable and cannot be stored for future
use.
o Ex. Ski resort demand
The Service Gap
find more resources at oneclass.com
find more resources at oneclass.com
Document Summary
Any intangible offering that cannot be physically possessed. Specifically refers to human or mechanical activities firms undertake to help satisfy. Intangibility: a characteristic of a service; it cannot be touched, tasted, or seen like a pure product can. Inseparable (production and consumption: a characteristic of a service: it is produced and consumed at the same time that is, service and consumption are inseparable. Inconsistent: a characteristic of a service: its quality may vary because it is provided by humans, training, standardization, self-serve tech, replace people with machines. Inventory: a characteristic of a service: it is perishable and cannot be stored for future use, ex. Voice of customer (voc) program: an ongoing marketing research system that collects customer insights and intelligence to influence and drive business decisions. Empowerment: in the context of service delivery, means allowing employees to make decisions about how service is provided to customers.
