　BMA258 Lect 1 What is Services Marketing 2012-13.pptVIP

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　BMA258 Lect 1 What is Services Marketing 2012-13.ppt

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* Generic Differences Between Goods and Services * Distinguishing Characteristics of Service Intangible elements dominate value creation – major cause of management and marketing issues in service firms. * Tangibility Spectrum ? ? ? Salt Soft Drinks ? Detergents ? Cosmetics ? Automobiles Fast-food Outlets ? ? Fast-food Outlets Professional Teaching ? Investment Services ? Airlines/hotels ? Advertising agencies ? services Tangible dominant (commodity) Intangible dominant (pure service) * Distinguishing Characteristics of Service Intangible elements dominate value creation Customers do not obtain ownership of services Service products are ephemeral and cannot be inventoried Greater involvement of customers in production process Other people may form part of product experience Greater variability in operational inputs and outputs Many services are difficult for customers to evaluate Time factor is more important--speed may be key Delivery systems include electronic and physical channels * Classifying Services Not all services are the same - they can be classified along two key dimensions: The nature of the service act (is it tangible or intangible). What or who is the direct recipient of the service (is the service directed at people or their possessions). Yields four classes of service: People processing - tangible acts directed at people (haircut, aviation). Possession processing - tangible acts directed at possessions (freight, repairs). Mental stimulus processing - intangible acts directed at people (education, consulting). Information processing - intangible acts directed at possessions (accounting, insurance). Differences have managerial implications. * Classifying Services High Contact Services Customers visit service facility and remain throughout service delivery Active contact between customers and service personnel Includes most people-processing services Low Contact Services Little or no physical contact with service personnel Contact usually at arm’s leng