Chapter 12

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University of Toronto Scarborough
Management (MGM)
Ingrid L.Stefanovic

INTRODUCTION Service is a type of product Service marketers are really selling experiences SERVICES VERSUS GOODS Service is a product without physical characteristics a bundle of performance and symbolic attributes designed to produce consumer want satisfaction Goods businesses sell things, services businesses sell performances o Goods are produced, services are performed Tangible attributes are those attributes that can be experienced by the physical senses, such as sight, tough, and smell Intangible attributes are those attributes that cannot be experienced by the physical senses Products can offer both attributes Buying Promises Consumers are basically buying promises (because there is no physical properties, they cannot conceptualize then service product), there is no product trial or return possible Three type of product properties are attached to every good or service o Search Qualities are physical qualities that enable products to be examined and compared. This eases the task of choosing among them Household furniture is high in search qualities o Experience Qualities are characteristics of products that can be assessed mainly through using them A meal at a fine restaurant or a musical performance is high on experience qualities o Credence Qualities are qualities for which, even after purchasing, the buyer must simply trust that the supplier has performed the correct service Car repairs, medical procedures are high in credence qualities CHARACTERISTICS OF SERVICES There are four unique characteristics of services that distinguish them from goods o Intangibility o Inseparability of production and consumption o Heterogeneity o Perishability Intangibility Services cannot be seen, smelled, or touched Has no physical substance Services can also be mentally intangible, because it is sometimes hard for human minds to grasp them Marketing problems created from intangibility of services o Services cannot be stored Revenue from empty seats in Airplanes are lost forever
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