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Services Marketing
Notes Figure 1.1: Service Characteristics
Source: http://nceffacilityops.com/wpimages/wp9108a739.jpg
Intangibility means that unlike goods, services cant be seen, touched and felt, tasted or smelled
or even heard before they are purchased.
Inseparability suggests that services are produced, distributed, and consumed simultaneously.
In the case of manufactured goods, production takes place in the production unit; thereafter the
goods are kept in inventory and transported to the distribution outlet from where the consumers
pick them up for consumption.
Heterogeneity means that services delivered generally vary in quality, time consumed in delivery,
and the extent of service provided. Since people deliver most services, they are variable.
Perishibility means that services cant be stored.
Example: For Airlines, in a particular flight, vacant seats remain unsold, whereas in the
case of manufactured goods, unsold items can be put into inventory and can be sold the next day.
Marketers have to find ways to tangibalise the intangible to increase the productivity of
providers who are inseparable from the product; to standardise the quality in the face of
variability; and to influence demand movements and supply capacities better in the face of
service perishibility.
Services are relatively intangible, produced and consumed simultaneously and often less
standardised than goods. These unique characteristics of services have specific marketing
implications and accordingly service marketer must adopt appropriate marketing strategies.
Although service industries are quite heterogeneous (ranging from beauty salons to utilities),
Berry identified some significant characteristics of services, which are shown in the following
table:
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