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