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ChapterLearningObjectives
Tounderstandthenatureandimportanceofservices
Toidentifythecharacteristicsofservicesthatdifferentiatethemfromgoods
Todescribehowthecharacteristicsofservicesinfluencethedevelopmentofmarketingmixesforservices
Tounderstandtheimportanceofservicequalityandexplainhowtodeliverexceptionalservicequality
Toexplorethenatureofnonprofitmarketing
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ChapterOutline
TheNatureandImportanceofServices
CharacteristicsofServices
DevelopingandManagingMarketingMixesforServices
ServiceQuality
NonprofitMarketing
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TheNatureandImportanceofServices
Service
Anintangibleproductinvolvingadeed,performance,oreffortthatcannotbephysicallypossessed
Applicationofhumanand/ormechanicaleffortsdirectedatpeopleorobjects
ServiceFacts(.)
Serviceindustriesaccountforover50%ofGDP.
Serviceindustriesemploy80%ofnonfarmworkers.
Morethanhalfofnewbusinessesareservicefirms.
Serviceshaveincreasedintandemwiththelong-.
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CharacteristicsofServices
Intangibility
Servicesareactionsthathavenopermanentphysicalqualitiesasopposedtogoodswhichcanbetouchedandpossessedovertime.
InseparabilityofProductionandConsumption
Theproductionofaservicecannotbeseparatedfromitsconsumptionbythecustomer.
Servicesareproduced,sold,andconsumedallatthesametime.
Perishability
Servicescannotbeproducedaheadoftimeandstoreduntilneeded.
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TheTangibilityContinuum
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CharacteristicsofServices(cont’d)
Heterogeneity
Variationinthequalityofservicesdeliveredbyindividualsandorganizations
Client-BasedRelationships
Interactionsthatresultinsatisfiedcustomerswhouseaservicerepeatedlyovertime
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CharacteristicsofServices(cont’d)
CustomerContact
Thelevelofinteractionbetweentheserviceproviderandthecustomernecessarytodelivertheservice
High-contactservicesrequirethecustomertobepresentduringtheproductionoftheservice.
Highcontactservicesrequirewell-trainedandmotivatedservicepersonnel.
Low-contactservicesdonotrequirethecustomer’scontinuouspresencewhiletheserviceiscarriedout.
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DevelopingandManagingMarketingMixesforServices
DevelopmentofServices
Packageorbundleofservicesconsistsof
coreservicesthataretheexpectedbasicserviceexperience.
supplementaryservicesthatdifferentiatetheservicebundlefromthoseofothercompetitors.
“Basic,”“Standard,”and“Deluxe”servicecombinationsarecustom-tailoredtoconsumers’specificneeds.