Unit16TheCharacteristicsofServicesandTheirRelatedMarketingStrategies2WhatisaService?

Wedefineaproductasabundleofsatisfactions.Thisdefinitionholdsaswellforservicesasfortangiblegoods.However,tobemorespecific,aserviceisainstrumentalactivityperformedforaconsumeroraconsummatoryactivityinvolvingconsumerparticipationin,butnotownershipof,anorganization’sproductorfacilities.WhatIsaService?Wedefineaproductasabundleofsatisfactions.Thisdefinitionholdsaswellforservicesasfortangiblegoods.However,tobemorespecific,aserviceisainstrumentalactivityperformedforaconsumeroraconsummatoryactivityinvolvingconsumerparticipationin,butnotownershipof,anorganization’sproductorfacilities.Thisdefinitionpointsoutthatthereasonforpurchasingourservicemaybeverydifferentfromthereasonforpurchasinganotherservice,Consumerspurchaseinstrumentalservices---typically,workperformedbyothers---toachieveagoalwithoutdirectlybeinginvolvedinthetask.Forexample,alawncareorahomemovingcompanyprovidesinstrumentalservices.Incontrast,astorethatrentsVCD/DVDmoviesprovidesaconsummatoryservice;theconsumerisdirectlyinvolvedandimmediatelygratifiedbytheuseoftheservice.Askiinglessonmaybebothaninstrumentalandaconmummatoryservice.Theskiinginstructorperformsaninstructionaltaskforthestudent,andthestudentreceivesgratificationastheserviceisconsumed.51.intangibility2.perishability3.inseparability4.variabilityTheCharacteristicsofServicesTheCharacteristicsofServices

Bothinstrumentalandconsummatoryserviceshavethefollowingcharacteristics:(1)intangibility,(2)perishability,(3)inseparability,and（4）variability.Themanymarketingstrategiesassociatedwitheachoftheseservicecharacteristicsarediscussedbelow：

IntangibilityMostservicesareintangible,eventhoughtheirproductionmaybelinkedtoatangibleproduct(thetransportationserviceanairlineprovidesistiedtoitsfleetofairplanes,rentingaDVDmovieistiedtothetemporaryusageoftheDVDdisk,andsoon).Theelementofintangibilitymakesthemarketingofservicesdifferentfromthemarketingoftangiblegoods.Intangibility

meansthatbuyerscannotsee,feel,smell,hear,ortastebeforetheyconcludeanexchangeagreementwithaseller.Becauseofthisintangibility,consumersmaymisunderstandtheexactnatureofaservice.Formostofus,somethingthatisintangibleismoredifficulttograspthansomethingthatistangible.Evaluatingthequalityofsomethingintangibleisdifficult.Tohelpconsumersunderstandandevaluatethenatureoftheirservices,marketersoftenemployamarketingstrategytomaketheintangibletangible.Itcanbearguedthatbecauseconsumerscannottaste,feel,smell,orwatchaproductinoperationinadvance,theypurchasepromisesofsatisfaction.Thus,implementingastrategytomakeaservicetangiblerequiresstressingasymboliccluesorprovidingsupplementaltangibleevidencetoindicatethatthepromiseaboutaservice’squalitywillbekeptTomaketheservicemoretangible.promotionalmessagesportraythepeoplewhoprovidetheservice.AllStateInsuranceCompany’sslogan“You’reingoodhandswithAllState”promotestheideathatthepeopleandthecompanyarereliable.Youcanseeforyourselfthatthesearegoodpeople;iftheypromisesomething,yourcanbesurethepromisewillbefulfilled.Effectivelymarketingintangiblesreliesondevelopingasymbolicappearanceofcompetencyandcredibility.Consumersshouldbelievethatwhatispromisedwillbedelivered.Thestrategyofcreatingtangibilitythroughsymbolsistypicallyimplementedwithbrandingandthroughthepromotionmix.However,servicemarketersoftentiephysicalgoodstotheirservicestoprovideadditionaltangibleevidenceofthepromisedservice.Ahealthclubmembershipcomeswithmembershipcard.Adentist’sgiftoftoothbrushisevidencethatadentalservicehasbeenperformed.Inahotelroom,thebathroomdrinkingglassesarewrappedinbagsorplasticfilm,provingsilentsymbolscommunicatingthattheroomhasbeencleanedfortheguests’use.PerishabilityServicesareperishable;theycannotbestored.Thus,iftheabilitytoproduceaserviceexistsbutgoesunusedbecausethedemandfortheserviceislow,unitsofintangibleofferingperish.Consider,forexample,anairplaneflyingfromBeijingtoGuangzhouwithhalfitsseatsempty.Everyminutetheplaneisintheair,itproducesatransportservice,whichisconsumedsimultaneouslybythepassengersonboard.Theairlinecannotstoretheserviceequivalentoftheemptyseatsonthatparticularflightforlatersale.No-showsatadentist’soffice,emptyseatsattheoperaorinamovietheater,theabsenceofstudentsfromaclassroom,andaslownightatarestaurantrepresentcasesinwhichallorpartoftheservicesupplier’sinventoryofproductivecapacityhasbeenlostbecauseofperishability.Becauseperishableservicescannotbeinventoried,servicemarketersplanandimplementdemandmanagementstrategies(alsocalledcapacitymanagementstrategies).Effectivedemandmanagementrequiresaccurateforecastingoftheneedforservices.Adentistwhoinaccuratelyforecastshowlongitwilltaketoadministeraservicemayalienatewaitingpatients,whowillthenseektheservicesofcompetitors.InseparabilityInmarketingexchangesoftangiblegoods,theproducers(forexample,industrialengineersorassemblylineworkers)neednotcomeindirectcontactwiththosewhobuytheproducts.Becauseitispossibletoseparateproductionfromconsumptioninexchangesoftangibleproducts,distinctsellingandmarketingdepartmentsinvolvednaturallytohandletheactivitiesaimedatconsummatingtheseexchanges.Thistypeofseparationisoftenimpossibleinmarketingintangibleservices.Inmanycases,servicesareinseparablefromtheirproducers.Inseparabilitymeansthatproducerandconsumermustbepresentinthesameplaceatthesametimefortheservicetransactiontooccur.Inseparabilitychangesthesequenceofeventsusuallyassociatedwiththeexchangeofaproduct.Ingoodsmarketing,theproductisfirstproduced,thensold,andthenconsumed.Althoughsomegoodsarenotproduceduntilafirmorderhasbeenreceived(specialtyrobotsorcustom-tailoreddresses,forinstance),inmostcasesproducersoftangiblescanproduce,stow,ordisplaytheirofferings.Suppose,however,apatientistobeoperatedonbyasurgeon.Deliveringthepromisedservicerequiresthesimultaneouspresenceofsurgeonandpatient.Shouldsomeproblempreventeitherfrompresent,theotherislikelytosuffer.Ifthesurgeondoesnotappear,thepatientwillhavetocontinuetosufferwithhisorherproblemforanadditionaltimeorallowanunfamiliarsurgeontoperformtheoperation.Conversely,ifthepatientfailstoshowupfortheoperation,thesurgeonisleftwithunproductivetimeandthereforemaylosesomeincome.Formanyservices,theconsumeractivelyparticipatesintheproductionprocess.Atatravelagency,forexampletheagentinteractswiththecustomertomakeareservationthatsuitsthecustomer’sdesires.Becauseinseparabilityoftendemandssuchpersonalcontactbetweenbuyerandseller,itcancausemanydistributionproblems.Thus,mostchannelsofdistributionforservicesaredirectchannelsinwhichtheserviceprovidermarketstheproductsdirecttotheconsumerororganizationuser.Anaccountant,forexample,dealsdirectlywithaclient.(However,itispossibletohaveintermediariesinthedistributionofservices,thisgoesbeyondourtopichere).Becauseoftheelementofinseparability,serviceorganizationshavebeenveryproduction-orientedintheirapproachtodistribution.Forinstance,traditionallyhospitalshadasinglelocationandtheirclientswereexpectedtovisitthe“factory”.Today,undermorecompetitiveconditions,hospitaladministratorsrealizetheneedforconvenient,multiplelocations,emergencycarecenters,andambulatorycarcentersthatsupplementthemainhospital.Similarly,banksnolongerhavesingleplaceofbusinessbutoffermanylocationsaswellasautomatictellerservices.Havingaproductionorientationmeansthatserviceproviderstendtoseethemselvesmoreascreatorsorproducersofofferingthanasitsmarketers.Theytendtoaccentthepride,technicaldifficulties,andotherelementsinvolvedinproductioninsteadofunderstandingtheneedtosatisfyconsumers.Inotherwords,manyserviceprovidersareproductionorientedratherthancustomer-oriented.Overcomingthisorientationproblemleadstoastrategyinwhichtheproductionprocessisconsideredamarketingactivity.Thus,managingpersonnelbecomesamarketingactivity,becausethestandardsforpersonneleffectivenessandefficiencymustbebasedonconsumers’perceptions,notonassembly-linestandards.Mostservicesaredeliveredbypeople.Thequalitycontactbetweenconsumersandfrontlinestaffprovidesthecompetitiveedge,soemployeesarethekeytosuccess.Theservicemarketermustthereforeconsideremployeesaspartoftheserviceoffering.Thedoctorsbedsidemannerandthepersonalityofalawyer’sreceptionistarepartoftheproductofferedtoconsumers.Competentemployeesmustbehiredandtrainedsothattheyperformtheserviceproperly.Serviceemployeesneedtoknowtheorganization’smarketinggoalsandbetrainedtoservewellandrespondtoanycomplaints.Inshort,theymustbetrainedtoassureconsumersatisfaction.VariabilityBecausemanyintangibleofferingsarecloselytiedtothesupplier’spersonalperformance,therecanbegreat

variability,orheterogeneity,amongtheservicesprovided.Standardizingservices---thatis,reducingserviceheterogeneity---isdifficult.Itisnotpossibletoprescribeanddeliverequalamountsofsmilingbyallemployeesataserviceoutlet,medicalcareofequalqualitybyseveraldoctorsatthesametime.Whenacustomerbuysaservice---say,intheformofairlineticket---thecustomercanknowonlyinaverygeneralwaywhattoexpectfromthepilotandflightattendants;knowingpreciselywhattoexpectaheadoftimeisimpossible.Variabilityleadsservicemarketerstochooseoneoftwoalternativestrategies:standardizationorcustomization.TheStrategyofCustomizationIncontrasttostandardization,acustomizationstrategyrequiresmodifyingorcustomizingaserviceforeachindividualcustomer.Suchservicesarenotmassproducedbutindividualized.Acharteredyachtmayvisitanydestinationchosenbythecustomer.Ahealthclub’sfitnessprogrammaybecustomizedtosuitthecustomer’sdesiresandindividualphysicalcondition.Wehavediscussedsomemajorservice-relatedproblemsandpossiblestrategicresponsesforeachofthefourgeneralcharacteristicsofservicemarketing.23ReviewofKeyTermsandConceptsService:(服務)Ataskoractivityperformedforabuyeroranintangiblethatcannotbehandledorexaminedbeforepurchase.Intangibility:(無形性)Thecharacteristicofservicesreferringtothecustomer’sinabilitytosee,hear,smell,feelortastetheserviceproductPerishability:(易消失性)Thecharacteristicofservicesreferringtothefactthattheycannotbestoredandusedlater.Demandmanagementstrategy：（需求管理戰略）Astrategyusebyservicemarketerstoaccuratelyforecasttheneedofservicessothatsupplyisinlinewithdemand.24Inseparability：（不可分離性）Acharacteristicofservicesreferringtothefactthatproductionoftenisnotdistinctfromconsumptionofaservice---thatis,theproducerandtheconsumerofaservicemustbetogetherinorderforatransactiontooccur.Variability：（易變性）(alsocalledheterogeneity)Thecharacteristicofservicesreferringtothefactthatservicesareheterogeneous---thatis,thequalityofservicesdeliveredcanvarywidely.Strategyofcustomization：（定制戰略）Astrategyusedbymarketersthatrequiresmodifyingorcustomizingofaserviceorproductforeachindividualcustomer.DiscussionandReviewQuestions:Whatisaservice?Defineserviceinitstechnical,specificsense.Whatarethebasiccharacteristicsofservices?AndPleasegiveexamplesofeachinyourownwords.Whatisthedemandmanagementstrategythatgoeswiththeservices?Describesituationsinwhichconsumersmightpreferconsumptionwithoutownershiptoactualownershipofproducts.?5.Describeasituationinwhichyoupaidinadvanceforapromiseofsatisfaction.6.Describethestrategiesofstandardizationandcustomization.7.Pleasegiveexamplesoftheuseofstandardizationandcustomizationinthemarketingofservices.8.Definethetermofvariability.Whatisthewordyouhavejustlearnedwiththesamemeaningofvariabilityinthiscontext?9.Whatdifferences