Implications of Intangibility

Try these 6-solutions-

1. Create strong corporate image-
2. High performance-risk BRAND
2. Stimulate word-of-mouth
perception communications.
3. Provide tangible evidence for
 Services cannot be assurance
4. Provide Reports, customers’ success
examined or evaluated stories, accreditations or certification
by customer before by experts
5. Demonstration in physical mode or
purchase videos
6. Conduct customer-visits at delivery
points

Challenges Solutions
 Implications of Intangibility
3.Risk of loss of Observe these 5-
1. Do not over-promise &
integrity - deliver as promised
2. Communicate
 “This is not what you explicitly, no
told me I am going implied meanings
to get.” 3. Create strong
corporate image-
 advertised claims BRAND
4. Stimulate word-of-
cannot be
mouth
verified communications.
5. Use personal sources
of information.
 Implications of Inseparability
2. Simultaneous production
and consumption of Services :
 Goods:-
 first produced, then sold
and then consumed
 Services:-
 first sold, then
produced and
consumed together
 No mass production
Challenges
3-Solutions:-
1. More precise demand
forecasting & capacity planning
to
- produce what is needed &
- sell whatever is produced
2. Flexible time & availability with
self-service, automation &
electronic delivery
3. Optimize customization for
economies of scale
Solutions
Four Basic Assuming the
demand for the
Questions service product is
accurate , what
What is the nature
& extent of
demand variation?
that need is the capacity
planned?
to be
What is the effect
addressed when demand-
How is the
demand-capacity
capacity
imbalance to be
imbalance is on
managed?
22
either side?