Page 23 - DMGT510_SERVICES_MARKETING
P. 23
Services Marketing
Notes Services can be classified by: end-users, degree of tangibility, people, expertise, and
orientation towards profits.
In end users classification, there can 3 types of end users namely: individual consumers,
business to business end users and industrial end users.
Services can also be separated as high contact services that involve higher degree of
contact from the customers like financial services and low contact services like ATM.
1.6 Keywords
Experience Goods: Goods (services) that need to be experienced before you can evaluate them.
High Contact Services: Service providers have high degree of contact with the customers.
Low Contact Services: Services characterized by very low contact with people.
Perishibility: It refers to the fact that (in general) services cannot be produced and stockpiled
(inventoried) before consumption.
Search Good: A Product with features and characteristics easily evaluated before purchase.
Service: A Type of economic activity that is intangible, is not stored and does not result in
ownership.
Service Marketing: Marketing based on simple relationship and value.
1.7 Review Questions
1. Services are now an integral part of any economys infrastructure and have become
indispensable to urban life. Substantiate with suitable examples.
2. Suppose you are the marketing head of a chain of discothèques. What measures will you
take to add an element of tangibility to your service?
3. The customers service encounters are different every time. Comment
4. Suggest ways to overcome the problem of standardization in a multi-cuisine restaurant.
5. Compare and Contrast service and product marketing. Give examples.
6. Market has variety of offers ranging from pure goods to pure services. In light of this
statement explain the product-service continuum.
7. Do you think that classification of services can help in developing the marketing strategy
better? How?
8. With tangibility and intangibility on either ends of a continuum, can you identify services
which can be classified along this continuum? Select one of those services used by you as
an individual, as family and as an organisation.
9. On a product-service continuum place the following items: automobile, fast food meal,
pizza delivery, auto repair, advertising agency, computer, counselling and installed
carpeting.
10. In which category would you put the following services? Give reasons also:
a. A day care centre
b. Chartered bus service
18 LOVELY PROFESSIONAL UNIVERSITY
