When thinking about the characteristics of services, intangibility may come to your mind first. That is, service industries vary greatly. counselling, museums, hairdressing, rail travel, hotels) the customer must be physically present. Strategies need to be developed for producing a better match between supply and demand. The aim would be to help the potential customer form expectations before using the service. It refers to the fact that you cannot own and store a service like you can a product. Try this ⇒ www.HelpWriting.net ⇐. Because of the labour-intensive nature of services, there is a great deal of difference in the quality of service provided by various providers, or even by the same providers at different times. An airline which offers seats on 9.00 a.m. flight from Mumbai to Delhi cannot sell any empty seats once the aircraft has left. • Guarantee should contain elements that are important to customer • Guarantee should be easy to understand and communicate • Easy to invoke and collect 4. The challenge for the service provider is to determine the extent of intangibility and the management action required to make the service more tangible (Figure 2.2). a brochure to help consumer understanding of the service. ADVERTISEMENTS: Six key distinguishing characteristics of services are as follows: a. Intangibility b. Inseparability c. Variability d. Perishability e. Heterogeneity f. Lack of Ownership. 10% discount on delayed delivery orders”. Pricing and promotion are two of the tools commonly adopted to tackle this problem. Six key distinguishing characteristics of services are as follows: a. Intangibility b. Inseparability c. Variability d. Perishability e. Heterogeneity f. Lack of Ownership. Content Filtrations 6. Equally, if capacity far exceeds demand, the revenue and/or value of that service is lost. No public clipboards found for this slide, Scribd will begin operating the SlideShare business on September 24, 2020. Production and consumption are said to be separable. These are generally sold first, then produced and consumed simultaneously. This also entails that services cannot be separated from their providers. Fluctuations in demand characterize service organizations and may pose problems where these fluctuations are unpredictable. a hotel room, a credit card). See our User Agreement and Privacy Policy. Privacy Policy 8. Consequently, service companies use various techniques for creating a better match between demand and supply: Demand shifting. However, in case of fluctuating demand, service firms can have difficult problems. We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. Other services may rely more on written communication, e.g. Indeed, users participate in every service production. home banking. As services are performances they cannot be stored. Students should not feel burden writing work and must feel that it's not something which they can't do. Branding Decisions – 4 Brand Strategy Decisions to Build strong Brands. The latter task will be of particular significance. The value existed only at that particular point and disappeared when the patient did not come. From the customers’ viewpoint too it is difficult to judge quality in advance of purchase; although this element also applies to some product marketing. However, a service is produced at or near the point of purchase. Within a particular hotel, one employee is courteous and helpful while another is arrogant and obstructive. However, all services have certain characteristics in common: the characteristics of services. Companies usually produce goods in one central location and then transport them to the place where customers most want to buy them.