1. Grasping the Uniqueness of Services Marketing

2. Definition of Services
A service is "a deed, a performance, an effort" (Rathmell 1966).
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3. Characteristics of Services
Intangibility - A service cannot be seen, touched, held, or put on a shelf.
Simultaneity/Inseparability – For most services, the production and consumption of the service performance occur simultaneously.
Heterogeneity – It is hard for a service organization to standardize the quality of its service performance.
Perishability – Most services cannot be produced or stored before consumption. They exist only at the time of their production.
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4. Marketing of Services
Intangibility - The product is a process, a deed or a performance; therefore,
For the customer: Perceived risk is higher; harder to evaluate before (even during or after the service).
For the marketer: Harder to help customer visualize the product and differentiate from the competition.
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5. Marketing of Services (cont’d)
Simultaneity/Inseparability - The provider and the customer are part of the product; production and consumption are simultaneous and inseparable; therefore,
For the customer: Some interaction with the service provider is necessary and sometimes product is shared with other customers.
For the marketer: Customers are co-producers, and their interaction and roles have to be managed.
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6. Marketing of Services (cont’d)
Heterogeneity - The product varies across customer, provider, and for the same provider and customer from one consumption occasion to the next; therefore,
For the customer: Consistency of product quality is always suspect, and service provider relationship is critical.
For the marketer: Customization is an opportunity; and frontline operations and customer skills training is critical.
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7. Marketing of Services (cont’d)
Perishability - The product cannot be stored and can be produced only after customer initiates; therefore,
For the customer: Product needs to be available and produced when necessary.
For the marketer: Supply must match demand; otherwise (revenue) opportunity to produce is lost; the task is to manage rather than build demand.
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8. Classifications Based on Services Fields
Health Care Services
Financial Services
Professional Services
Educational and Research Services
Hospitality, Travel, and Tourism Services
Sports, Arts, and Entertainment Services
Source: Fisk & Tansuhaj (1985)
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9. Classifications Based on Services Fields (cont’d)
Telecommunication Services
Channel, Physical Distribution, Rental and Leasing Services
Personal and Repair and Maintenance Services
Governmental, Quasi-Governmental, and Non-Profit Services
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10. Classifications Based on Services Customers
Consumer services – provided to customers who are purchasing for their own personal needs.
Prominently visible in any community.
Business to business services – provided to customers who are purchasing on behalf of their organizations.
Rarely seen by the general public.
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11. Lovelock's Classification
Tangible acts on a person - Services such as health care, personal care, vacations, hotels, and airlines.
Intangible acts on a person - Services such as education, entertainment shows, and legal services.
Tangible acts on a thing - Services such as house cleaning, appliance repair, landscaping services, etc.
Intangible acts on a thing - Services such as financial and insurance services and tax preparation.
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12. Copyright © Houghton Mifflin Company. All rights reserved.

13. Copyright © Houghton Mifflin Company. All rights reserved.