IntangibilityA defining characteristic of a service is that it is intangible – it is not something physical that you can see, touch, or taste. Show
Learning Objectives Describe how intangibility differentiates a service from a product. Key TakeawaysKey Points
Key Terms
Intangibility Intangibility is used in marketing to describe the inability to assess the value gained
from engaging in an activity using any tangible evidence. It is often used to describe services where there isn't a tangible product that the customer can purchase, that can be seen, tasted, or touched. This is the most defining characteristic of a service that differentiates it from a product.  Intangible Service: Teachers provide a service that is intangible. InseparabilityInseparability is a service characteristic that makes it impossible to disconnect the production of the service from its consumption. Learning Objectives Describe inseparability in services marketing and how it distinguishes services from goods Key TakeawaysKey Points
Key Terms
Inseparability
Inseparability (also known as simultaneity) is used in marketing to describe a key quality of services that distinguishes them from goods. The Importance Of Service Delivery Service marketing is comprised of people, processes, and physical evidence, all of which which are unique to the marketing of services. Haircut: A barber is part of the haircut service that he delivers to his customer. A haircut is delivered to and consumed by a customer simultaneously. PerishabilityPerishability of services implies that service capacity cannot be stored, saved, returned, or resold once rendered to a customer. Learning Objectives Describe why business services are perishable and how perishability impacts services marketing Key TakeawaysKey Points
Key Terms
Perishability Perishability is used in marketing to describe the way in which a service capacity cannot be stored for
sale in the future. Services cannot be stored, saved, returned, or resold once they have been used. Once rendered to a customer, the service is completely consumed and cannot be delivered to another customer. Perishable Entity: What an airline ticket entitles a customer to cannot be stored, saved, returned, or resold after the flight. It is a perishable entity. HeterogeneityHeterogeneity, also known as variability, describes the uniqueness of service offerings. Learning Objectives Discuss how heterogeneity relates to service quality and delivery Key TakeawaysKey Points
Key Terms
While products can be homogeneous and mass produced, the same is not true of services. The term heterogeneity describes the uniqueness of service offerings (also known as variability). In other words,
services are generated, rendered, and consumed at one time. The service can never be exactly repeated as the same point in time, location, or circumstances, or with the same configurations or resources, even if the same consumer requests the same service. McDonald's Big Mac: Big Macs are mass produced and almost identical, but the same is not true for the services rendered by the staff. Given that services are heterogeneous, it is essential that each and every customer receive excellent service. Heterogeneity of service quality does not imply that no two customers can receive great service, it just means that no two transactions can be repeated identically. It is the quality of the service that will essentially set two competing firms with similar products and services apart. Marketers can leverage the service offering to
differentiate themselves from the competition and attract customers. Client-Based RelationshipsClient-service providers aim to build a level of trust with clients that leads to long lasting buyer-seller relationships. Learning Objectives Discuss how relationship-building helps retain customers in a competitive marketing environment Key TakeawaysKey Points
Key Terms
Client-Based Relationships Relationships are a key factor when it comes to the marketing of services. Since the product is intangible, a large part of the customer's buying decision will depend on the degree to which he or she trusts the seller. Therefore, the service provider should listen to the needs of the customer, fulfill them through the appropriate service offering, and build a long-lasting relationship that will lead to repeat sales
and positive word-of-mouth. Building RelationshipsBuilding client-based relationships is also important due to the increasing homogeneity of product offerings. For example, many beauty salons that offer homogeneous, or similar, services such as a haircut, coloring, and styling. Having an unkempt and unsanitary salon will ensure the client will never come back. Something as simple as cleanliness is a good way to increase client confidence, especially since a client does not know how a haircut will turn out until it is done. Due to the increasing number of salons available, it would be very easy for a client to go elsewhere. However, being friendly, professional, and listening to the needs of the client will help ensure that the client will be a repeat customer. Competitive Success: Rolls Royce PLC maintains a competitive edge in the airplane engine industry by adding valued services to improve the quality of its engine. Licenses and AttributionsCC licensed content, Shared previously
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What is simultaneous production and consumption?Simultaneous Production and Consumption
Service products are consumed at the same time they are being produced. The tourist attraction is producing entertainment or pleasure at the same time it is being consumed. In contrast, goods products are produced, stored, and then consumed.
Does production and consumption happen at the same time?With services, production (making the service “product”) and consumption (customer demand or delivery) often occurs simultaneously, making the exact timing of production a critical issue.
Which of the following characteristics of services refers to simultaneous production and consumption?Perishability: Because services are produced and consumed simultaneously, they cannot be inventoried.
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In which sector does production and consumption take place almost simultaneously?
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