Deck 12 - Services - Lecture 13 Flashcards
what are two types of service
producer services,
consumer services
what is a producer
help a country by providing inputs to production processes
characteristics of services *
intangibility, inseparability, variability, perishability, impossibility of being owned
how are services inseparable
consumption of services is inseparable from its means of production
explain feature of services variability
manufactured goods - consistent,
services - high levels of variability
explain feature of services perishability
unlike most goods, services cannot be stored
example perishability
spare seats on a train cannot be transferred
explain feature of services impossibility of being owned
no ownership transferred from seller to buyer
what is the goods services continuum
continuum with pure services at one end and pure goods at the other with products falling between these two extremes
example of two different fast food services
pret a manger, mcdonalds
can the price of a service fluctuate
price of service can change quite a lot due to nature (plumber in winter compared to summer)
what are the three new ps added on for services
people,
processes,
physical evidence
(price, place, promotion, product)
explain people (ps for services)
people are a vital element of the marketing mix, direct contact between producer and consumer
explain processes (ps for services)
processes are of critical concern to consumers of high contact services
explain physical evidence (ps for services)
intangible nature means potential customers unable to judge a service before it is consumed, increasing risk of purchase decision
what is affordability budgeting
budgeting what the organisation believes it can afford
what is % of sales budgeting
sets aside certain percentage of sales to fund marketing programmes
how much does the service sector account for in terms of employment
75%
what does intangibility mean
a pure service cannot be assessed using any of the physical senses
examples of some common types of service
haircut,
surgery,
financial and banking services,
lawyer services
what do very few services face
very few services face a constant pattern of demand through time
what are the 7 ps for services *
product price promotion place,
people,
processes,
physical evidence
what is different about place for services
more appropriate to talk about accessibility,
inseparability implies that services are consumed at the point of production
talk about 7ps people
for most services people are a vital element of the marketing mix,
most services involve direct contact between the producer and the consumer
