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    Special Characteristics of Services

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    Pritam Saha
    The document discusses four key characteristics of services: intangibility, inseparability, heterogeneity variability, and perishability. It then provides examples and further explanation of each characteristic. The document also discusses different ways of classifying services, such as by whether they are goods-based or people-based, consumed services or business-to-business services. Ultimately, both physical goods and services provide benefits and can be considered products for marketing purposes. As such, services marketing managers must consider aspects like developing distinguishing service elements to gain competitive advantages.

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    Special Characteristics of Services

    Uploaded by

    Pritam Saha
    340 views3 pages
    The document discusses four key characteristics of services: intangibility, inseparability, heterogeneity variability, and perishability. It then provides examples and further explanation of each characteristic. The document also discusses different ways of classifying services, such as by whether they are goods-based or people-based, consumed services or business-to-business services. Ultimately, both physical goods and services provide benefits and can be considered products for marketing purposes. As such, services marketing managers must consider aspects like developing distinguishing service elements to gain competitive advantages.

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    SPECIAL CHARACTERISTICS OF SERVICES

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    The document discusses four key characteristics of services: intangibility, inseparability, heterogeneity variability, and perishability. It then provides examples and further explanation of each characteristic. The document also discusses different ways of classifying services, such as by whether they are goods-based or people-based, consumed services or business-to-business services. Ultimately, both physical goods and services provide benefits and can be considered products for marketing purposes. As such, services marketing managers must consider aspects like developing distinguishing service elements to gain competitive advantages.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as DOC, PDF, TXT or read online from Scribd
    Download as doc, pdf, or txt
    340 views3 pages

    Special Characteristics of Services

    Uploaded by

    Pritam Saha
    The document discusses four key characteristics of services: intangibility, inseparability, heterogeneity variability, and perishability. It then provides examples and further explanation of each characteristic. The document also discusses different ways of classifying services, such as by whether they are goods-based or people-based, consumed services or business-to-business services. Ultimately, both physical goods and services provide benefits and can be considered products for marketing purposes. As such, services marketing managers must consider aspects like developing distinguishing service elements to gain competitive advantages.

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    SPECIAL CHARACTERISTICS OF SERVICES

    Services are said to have four key characteristics which impact on marketing
    programmes.
    These are:
    Intangibility
    Inseparability

    Heterogeneity variability
    Perish ability (simultaneous production/consumption)
    It is helpful to consider each of these characteristics briefly:

    Intangibility

    Services are said to be intangible - they cannot be seen or tasted, for example. This can
    cause lack of confidence on the part of the consumer as was apparent earlier, in
    considering pricing and services marketing, it is often difficult for the consumer to
    measure service value and quality. To overcome this, consumers tend to look for
    evidence of quality and other attributes, for example in the decor and surroundings of the
    beauty salon, or from the qualifications and professional standing of the consultant.

    Inseparability

    Services are produced and consumed at the same time, unlike goods which may be
    manufactured, then stored for later distribution. This means that the service provider
    becomes an integral part of the service itself. The waitress in the restaurant, or the cashier
    in the bank, is an inseparable part of the service offering. The client also participates to
    some extent in the service, and can affect the outcome of the service. People can be part
    of the service itself, and this can be an advantage for services marketers.

    Heterogeneity Invariability

    Because a service is produced and consumed simultaneously, and because individual


    people make up part of the service offering, it can be argued that a service is always
    unique; it only exists once, and is never exactly repeated. This can give rise to concern
    about service quality and uniformity issues. Personnel training and careful monitoring of
    customer satisfaction and feedback can help to maintain high standards.

    Perishability

    Services are perishable; they cannot be stored. Therefore an empty seat on a plane, for
    example, is a lost opportunity forever. Restaurants are now charging for reservations
    which are not kept, charges may be made for missed appointments at the dental clinic.
    Perishability does not pose too much of a problem when demand for a service is steady,
    but in times of unusually high or low demand service organizations can have severe
    difficulties.

    The above characteristics are generally referred to in many texts as being what makes
    services marketing so different. However, this assumption should be queried on a number
    of grounds. Like all sweeping generalizations, generalizations concerning services
    marketing do not always represent the full picture. Consider the question of tangibility. In
    the main, services can be broken down into three main classifications:

    Rented goods services


    Consumer-owned goods services
    Non-goods services

    Some of these categories involve goods which are physical, and which contribute in some
    way to the service offering. This gives rise to questions about the degree to which
    services can be classed as intangible.

    Another way of classifying services is to consider the distinction between equipment-


    based services and people-based services. Examples of equipment-based services would
    include:
    Vending machines Car and tool hire Airlines

    People-based services would include:


    Nursery infant care
    Architects Legal services

    Yet another distinction can be made between consumed services, which are offered on a
    personal basis, and business-to-business or industrial services. Some service providers
    may operate in both these market sectors:

    Franchised child care services may offer local services to parents, and operate in-
    company schemes. Hotels may cater for the tourist and the business or conference
    market. Private health care programmes generally offer personal and corporate rates. On
    the other hand, some services such as industry-specific consultancy services or marine
    salvage operate in quite closely defined market sectors.

    4. THE NATURE OF THE SERVICE PRODUCT

    Whichever means of classifying services is used, and whether or not there is agreement
    that the unique characteristics of services really represent unique distinctions, ultimately
    both physical goods and services provide benefits and satisfactions - both goods and
    services are 'products' or offerings. Consider the following breakdown of service
    offerings:
    Utilities: gas, power, water
    Transport and communications
    Recreation and leisure
    Insurance, banking and finance
    Business, professional and scientific

    For most of these categories it is easy to think of 'products' associated with them;
    insurance policies, heating and light, package holidays and so on. This has implications
    for services marketing management.

    As in traditional marketing concerned with-'tangible products, the services marketing


    manager needs to look closely at marketing strategy, including such aspects as:

    The service element of the augmented product - the characteristics which help distinguish
    a product from its competitors - is now a key factor in long-term success. Rapid
    developments in technology which mean that firms can no longer sustain a leading edge
    position in the marketplace by technological superiority alone has led to the development
    of service as a marketing tool for competitive advantage. The impact on profitability can
    be two-fold: profitability can increase

    .not only through superior competitive positioning, but many service divisions now
    represent profit centers in their own right. Another important area which is receiving
    increasing attention from marketers is the not-for-profit service "sector. Not-for-profit
    organizations engage in a broad sphere of activity ranging from cultural, educational and
    political interests to social and leisure activities. The size of these organizations ranges
    from very small, local concerns to large, multi-national operations.

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