ECON344 Chapter Notes - Chapter 12: Servqual, Marketing Communications, Intangibility
17 Nov 2016
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They cannot be held, touched or seen before the purchase decision. A major marketing need for services is to make them tangible or to show the benefits of using a service: inconsistency. Developing, pricing, promoting, and delivering services is challenging because they quality of a service is often inconsistent because they depend on the people who provide them: thei(cid:396) (cid:395)ualit(cid:455) (cid:448)a(cid:396)ies (cid:449)ith ea(cid:272)h pe(cid:396)so(cid:374)"s (cid:272)apa(cid:271)ilities a(cid:374)d da(cid:455)-to-day job performance. Organizations attempt to reduce this through standardization and training: standardization through automation is becoming popular, inseparability. Inventory-carrying costs are more subjective and are related to idle production capacity, which occurs when the service provider is available but there is no demand. The inventory cost of a service is the cost of paying the person used to provide the service, along with any needed equipment. Inventory-carrying costs are significantly lower when the service providers are paid by commission opposed to a fixed salary.
