1003MKT Lecture Notes - Lecture 8: Marketing Week, Intangibility, Groupon
30 May 2018
School
Department
Course
Professor
Marketing Week 8 Lecture Notes
Services Marketing Part 2
5 variables to judge quality in services
• Depending on the type of service, some variables are more important than others
o 1. Tangibles: Physical evidence- facilities, equipment, cleanliness etc.
o 2. Empathy: Caring, understanding, personal
o 3. Responsiveness: fast service
o 4. Reliability: dependable service
o 5. Assurance: trust and confidence in the service provider
4 Characteristics of service
• Services have 4 unique characteristics that affect marketing strategy:
o 1. Intangibility: a service cannot be sense
o 2. Perishability: services cannot be stores
o 3. Heterogeneity (or variability): variations in quality are more likely
o 4. Inseparability: the se4rvice cannot be separated from the service provider
1.Intangibility
• Services cannot be seen, touched, tasted etc., before purchase
• Beause of geate isk, all tagile its of eidee eoe sigifiat
o Pay attention to all tangibles (cleanliness of premises, equipment, staff
appearance etc.)
o Add tangibility to your service wherever possible
o Use guarantees and/ or client testimonials
2.Perishability
• Services cannot be stored for later sale e.g. once the plane departs, the value of
ept seats peishes foee
o However, most services face variable demand (peaks and troughs), and losses
because of perishability
o Balance Supply and Demand
▪ 1. sooth dead ith diffeetial fleile pies- e.g. Translink
off-peak: sell excess supply to off-peak times e.g. Scoopon and
Groupon
▪ 2. Increase supply in peak times e.g. Hire part-time workers,
additional equipment etc.
3.Heterogenity
• Variations in quality in the delivery of a service, from visit to visit, and between
different service providers in the same firm
• Challenged: reduce heterogeneity/ improve consistency in service quality:
o 1. Invest heavily in staff training
o 2. Develop service delivery systems
o 3. Manage customer expectations
o 4. Make complaining easy
find more resources at oneclass.com
find more resources at oneclass.com
