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Chapter Outline
The Nature and Importance of Services
Characteristics of Services
Developing and Managing Marketing Mixes for Services
Service Quality
Nonprofit Marketing
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The Nature and Importance of Services
Service
An intangible product involving a deed, performance, or effort that cannot be physically possessed
Application of human and/or mechanical efforts directed at people or objects
Service Facts (.)
Service industries account for over 50% of GDP.
Service industries employ 80% of nonfarm workers.
More than half of new businesses are service firms.
Services have increased in tandem with the long-term growth of the . economy.
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Characteristics of Services
Intangibility
Services are actions that have no permanent physical qualities as opposed to goods which can be touched and possessed over time.
Inseparability of Production and Consumption
The production of a service cannot be separated from its consumption by the customer.
Services are produced, sold, and consumed all at the same time.
Perishability
Services cannot be produced ahead of time and stored until needed.
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The Tangibility Continuum
FIGURE
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Characteristics of Services (cont’d)
Heterogeneity
Variation in the quality of services delivered by individuals and organizations
Client-Based Relationships
Interactions that result in satisfied customers who use a service repeatedly over time
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Characteristics of Services (cont’d)
Customer Contact
The level of interaction between the service provider and the customer necessary to deliver the service
High-contact services require the customer to be present during the production of the service.
High contact services require well-trained and motivated service personnel.
Low-contact services do not require the customer’s continuous presence while the service is carried out.
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Developing and Managing Marke