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Marketing What Isn’t There: Intangibles and Services. What is a Service?. Services are acts, efforts, or performances exchanged from producer to user without ownership rights Consumer services Business services. Importance of services in the U.S. gross domestic product.

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Presentation Transcript
what is a service
What is a Service?
  • Services are acts, efforts, or performances exchanged from producer to user without ownership rights
    • Consumer services
    • Business services
characteristics of services
Characteristics of Services
  • The 4 “I”s of Services
    • Intangibility
    • Inconsistency
    • Inseparability
    • Inventory
      • Idle capacity
classification of services
Classification of Services


Tangible Intangible

Recipient of Service



Hair cut, plastic surgery, manicure

College education.,

TV program, counseling

Dry cleaning, auto repair, housecleaning

Insurance, home security service

core and augmented services
Core and Augmented Services
  • Core service is a benefit that a customer gets from the service
  • Augmented services are additional offerings that differentiate the firm
  • Example: Airline transportation
    • Core: travel
    • Augmented services: frequent flier miles, sky caps, in-flight entertainment services and Internet access
evaluative dimensions of service quality
Evaluative Dimensions of Service Quality
  • Search qualities - characteristics of a product that the consumer can examine prior to purchase
  • Experience qualities - characteristics that customers can determine during or after consumption
  • Credence qualities - attributes we find difficult to evaluate even after we’ve experienced them
measuring service quality
Measuring Service Quality
  • Gap Analysis - measurement tool that gauges the difference between a customer’s expectation of service quality and what actually occurred
  • Critical Incident Technique - company collects and closely analyzes very specific customer complaints to identify critical incidents
gap analysis
Gap Analysis
  • Gap between consumer expectations and management perceptions
  • Gap between management perception and quality standards set by the firm
  • Gap between established quality standards and service delivery
  • Gap between service quality standards and consumer expectations
  • Gap between expected service and perceived service
service failure and recovery
Service Failure and Recovery
  • When services do fail, recover fast:
    • Apologize
    • Resolve the problem
    • Do not further inconvenience the customer
  • Analyze what happened to eliminate future failures
internal marketing
Internal Marketing

The notion that a service organization must focus on its employees, or internal market, before successful programs can be directed at customers.