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D It is all about the Experience even by the service. If there is a mistake in the whole experience, then all is wasted. Example: Restaurant: Step 1 (people wait 15 min) C] Order (Waiter needs to clean table mini) 0 Get meal C] Pay 0 If there is a bad point at the beginning, the experience will be bad. A 100% of satisfaction in each step ensure a good experience. Price You can’t check a service before buying It. Difficult to determine because no physical product. Price will signal the service quality. Price become a key.
The service should be proportional to the price proposed. Example: Budget Hotel (price lower) VS. 5 stars Hotel (price higher) services provided much more Distribution Types: – Physical Distribution: ATM Service (Machine) located everywhere you need to pay something, when it was Introduced, it was only available In banks, now everywhere. Physical Distribution – Online Distribution: Online transfer Promotion Ads, Public Relation (PR), Sales Promotion, Personal Selling, Direct Make Personal Selling: most effective way of communication.
Process Manufacturing of service happening when the customer is using it or when it is revived. At the contrary product are produced before. Situation when both of buyer and seller have to be together physically. Physical Evidence Physical evidence is something that have an effect on emotion Example: Clinic: controllability, raccoon’, wife, particular doctors… People People playing the role 0 Service provider ensure about everything to be deliver, person performing the service has to possess specific knowledge, attitudes, behaviors and skills Nature and Characteristic of a Service:
A company must consider four special service characteristics when designing marketing programs: 1. Service intangibility – Services cannot be seen, tasted, felt, heard or smelled in the same manner that we can sense tangible goods. – The customer owns memories, or outcomes such as greater knowledge, or styled hair. – The customer owns objects that can be used, resold or given to others. Resulting Marketing implications: Intangibility present some marketing challenges: – Service cannot be inventoried, fluctuation in demand is difficult to manage.
Service cannot be patent legally, new service concepts can be easily copied by competitors. – Service cannot be easily displayed or communicated to customer so quality can become questionable. – To reduce uncertainty buyers look for signals of service quality. They draw conclusions about the place, people, price, equipment and communication that they can see. – Decisions about what to include in advertising and other promotional materials are challenging and is pricing. – The actual costs of units of service is difficult to and the price/quality relationship is complex.