BU352 Chapter 10: Services: The Intangible Product
Document Summary
Chapter 10 services the intangible product. Economies of developed countries = more dependent on services. Service sector is > 70% of canada"s economy; lion"s share of jobs; grow faster than goods industries. Dependence & growth of service oriented economies in developed countries emerged because: It is cheaper for firms to manufacture products in less-developed countries. Most households have little time for the household maintenance tasks, and are willing to pay others to do chores. As population ages, need for health-care professionals (nursing homes) also increases. The marketing of services differs from product marketing because of 4 differences unique to services: intangible, inseparable, variable/inconsistent, and perishable/inventory . Marketing services = more challenging than marketing products. Most fundamental difference between a product & service cannot be touched, tasted, or seen. Intangibility makes it difficult to convey the benefits of services. Service is difficult to promote because it can"t be shown directly to potential customers.
