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Characteristics of Service: Difference Between Goods and Services

The document discusses key characteristics of services: [1] Intangibility - services cannot be touched or stored in inventory; [2] Inseparability - production and consumption occur simultaneously; [3] Heterogeneity - services are not always delivered consistently; [4] Perishability - services cannot be stored for later use. It provides examples for each characteristic and discusses marketing strategies like emphasizing tangible aspects, personal referrals, ensuring customer touchpoints, customization, and pricing approaches to address the unique challenges of marketing services.

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Prasanna Venkatesh
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125 views17 pages

Characteristics of Service: Difference Between Goods and Services

The document discusses key characteristics of services: [1] Intangibility - services cannot be touched or stored in inventory; [2] Inseparability - production and consumption occur simultaneously; [3] Heterogeneity - services are not always delivered consistently; [4] Perishability - services cannot be stored for later use. It provides examples for each characteristic and discusses marketing strategies like emphasizing tangible aspects, personal referrals, ensuring customer touchpoints, customization, and pricing approaches to address the unique challenges of marketing services.

Uploaded by

Prasanna Venkatesh
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
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Characteristics of Service

Difference between Goods and


Services
Characteristics of Services

1. Intangibility - “u can’t touch this” e.g.,


Movie ticket vs Pair of shoes
2. Production (or performing the service)
and Consumption (using the service) -
happens at the same time. E.g. Dentist,
Beauty saloon, fun and theme park.
3. Heterogeneity - services are not always
delivered the same way, E.g. restaurant
4. Perishability - cannot be put in inventory
or stored for later use, e,g.,Lawyers, Medical
professional, Hotels
Intangibility

Implications
• Cannot be stored
• Cannot be protected through patents
• Hard to explain and display Services if you
can’t see them
• Prices are difficult to set - depends on
customers expectations
Intangibility

Marketing Strategies
• Stress tangible cues e.g., Eco Lodge, Oberoi Hotels
• Use personal sources, references, e.g.Indiamart.com
• Use word-of-mouth, e,g, Privelage matrimony
• Contact customers after they buy to stimulate
continued enthusiasm and hope they “talk it up”
• Organizational Image, e.g.,Deutsche Bank
Focussing on the Tangibles
Personal Info, Sources, References

• Special Offers through emails, telephones,


mobile on special occasions of target customer
• Regular offers through above mentioned means
• Direct Marketing
Word of Mouth

Health Care Services

Courier, Goods &


Passenger
Transportation
Services
Services - Buying Promises

• If you can’t see it, touch it, smell it, you are
buying a “promise”
• There are 3 types of product properties/qualities
for every good and service
– search (comparison) qualities
– experience qualities
– credence (credibility) qualities
Intangibility and Customer
Evaluation
Inseparability of Production and
Consumption

Inseparability of Performing the Service and Using


the Service
Implications
• Happens at the same time
• Many people involved in delivering a service
• Customer may be part of the service delivery
• Mass production of services may be difficult
Inseparability of Production and
Consumption
Marketing Strategies
• Give Importance for your employees
• Emphasize how much you train your people - so
their ability to give the customer a good service
will be high
• Have many Customer “Touch-Points”
Importance for
employees
Customer Touch Points

Have Multiple Locations so that the Customer can


reach you easily
Banks  ATM’s, Call Centers, Net Banking,
Mobile Banking, Credit Cards, Door to Door
Banking etc…
Cellular  Currency Recharge Points, Drop boxes,
Online charging & Payments, Call Centers.
Road Transport  Booking counters, online
booking, Free pickup & drop from the nearest
boarding points, other services
Heterogeneity/ Inconsistency

• Services are not always delivered the same


way
• It is very difficult to standardize services
Marketing Strategy
• Customization
• Standardization
Perishability
• Cannot be put in inventory or stored for later use
• Demand fluctuates and changes, sometimes depending on the
season, or weather
Marketing Strategy
• Creative Pricing
• Reservation systems
• Complementary services
• Development of non-peak demand
• Part time employee utilization
• Capacity sharing
• Utilization of third parties
• Increase in customer participation
Thank you

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