1. foundations of Chapter M A R K E T I N G Copyright © 2003 by Nelson, a division of Thomson Canada Limited. Services 12

2. Chapter Copyright © 2003 by Nelson, a division of Thomson Canada Limited. Objectives 1. Elaborate on the discussion of products by exploring the service product. 2. Discuss the similarities and differences between goods and services. 3. Explain the four main characteristics of services. 4. Outline the major issues that must be addressed by marketers for each of the characteristics. 5. Describe the main methods marketers use to address these issues. Services 12 12-1

3. Chapter Copyright © 2003 by Nelson, a division of Thomson Canada Limited. Service A product without physical characteristics; a bundle of performance and symbolic attributes designed to produce consumer want satisfaction. Services 12 12-2

4. Chapter Copyright © 2003 by Nelson, a division of Thomson Canada Limited. Tangle and Intangible Attributes Tangible Attributes Those attributes that can be experienced by the physical senses, such as sight, touch, and smell. Intangible Attributes Those attributes that cannot be experienced by the physical senses. Services 12 12-3

5. Chapter Copyright © 2003 by Nelson, a division of Thomson Canada Limited. The Tangibility Spectrum Services 12 Figure 12.1 12-4

6. Chapter Copyright © 2003 by Nelson, a division of Thomson Canada Limited. Search Qualities Physical qualities that enable products to be examined and compared. This eases the task of choosing among them. Experience Qualities Characteristics of products that can be assessed mainly through using them. Credence Qualities Qualities for which, even after purchasing, the buyer must simply trust that the supplier has performed the correct service. Services 12 12-5

7. Chapter Copyright © 2003 by Nelson, a division of Thomson Canada Limited. Characteristics of Services 1.Intangibility 2.Inseparability of Production and Consumption 3.Heterogeneity 4.Perishability Services 12 12-6

8. Chapter Copyright © 2003 by Nelson, a division of Thomson Canada Limited. Intangibility and Customer Evaluation Services 12 Figure 12.2 12-7

9. Chapter Copyright © 2003 by Nelson, a division of Thomson Canada Limited. Inseparability of Production and Consumption Services 12 Inseparability A characteristic of services in which the product is produced and consumed simultaneously. 12-8

10. Chapter Copyright © 2003 by Nelson, a division of Thomson Canada Limited. Services 12 Table 12.1 12-9a Unique Service Features and Resulting Marketing Problems and Solutions (1 of 2)

11. Chapter Copyright © 2003 by Nelson, a division of Thomson Canada Limited. Services 12 Table 12.1 12-9b Unique Service Features and Resulting Marketing Problems and Solutions (2 of 2)

12. Chapter Copyright © 2003 by Nelson, a division of Thomson Canada Limited. Other Strategies in Services Marketing Services 12 Internal Marketing A marketing effort aimed at those who provide the service so that they will feel better about their task and therefore produce a better product. 12-10

13. Chapter Copyright © 2003 by Nelson, a division of Thomson Canada Limited. Other Strategies in Services Marketing Services 12 Interactive Marketing Term used to describe the inter- relationship between the employee and the customer. 12-11

14. Chapter Copyright © 2003 by Nelson, a division of Thomson Canada Limited. Services Marketing Triangle Services 12 Figure 12.3 Organization (management) EmployeesInteractive marketing Customers Internal marketing External marketing Source: Philip Kotler, Marketing Management Analysis, planning and Control, 8th ed. (Upper Saddle River, NLJ: Prentice-Hall, 1994), p. 470 Reprinted by permission of Pearson Education, Upper Saddle River, NJ. 12-12

15. Chapter Copyright © 2003 by Nelson, a division of Thomson Canada Limited. Services 12 Figure 12.4 12-13 A Model of Service Quality