BU352 Chapter Notes - Chapter 10: Excess Supply, Shortage
Document Summary
Services = intangible offering that involves a deed, performance, or effort that can"t be physically possessed. Customer service = refers to human/mechanical activities firms undertake to help satisfy their customers" needs & wants. Intangible: cannot be touched, tasted, or seen like a pure product can, makes it difficult to convey the benefits, can"t be shown directly to customers = hard to promote. Images marketers use reinforce the benefits or value the service provides. It is produced and consumed at the same time: give customers opportunity to be involved directly with service, can"t try service before purchasing & can"t return it if not satisfied, high purchase risk. Provide extended warranties or 100-percent satisfaction guarantees. Inventory (perishable: cannot be held in inventory or stored for use in the future, excess demand = turning customers away, excess supply = less desirable expense-to-revenue ratios. Customers have certain expectations of how service should be delivered; failed service deliver = service gap.
