4 major characteristics of services and the marketing strategies available for the service organization

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Qns: Discuss the 4 major characteristics of services and the marketing strategies available for the service organization.

Qns: What are the primary differences between product and services? Give examples that highlight these differences between product and services. Give examples that highlight these differences and provide examples of hybrid offer.

Qns. Using a service example of your choice, explain how the service company can deal with intangibility, inseparability, variability and perishability.

Four Major characteristics of services:1) Intangibility

2) Inseparability

3) Variability

4) Perishability

Intangibility

*Lack of tangible assets which can be seen, touched, smelled, heard or taste prior to purchase. E.g., education, air
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Hotel rooms that go unoccupied for the evening cannot be stored and used it at a later date

*Caused the reverse to occur where the demand is greater than supply. E.g. Airline does not have enough seats for everyone

Contrast

*Products can be mass produced and stored in the warehouses until consumer are ready to purchase

*The ability not creates an inventory of the good that will eventually be purchased by the consumer means that production and consumption of the good can be separated in time and space. E.g., in the case of a pair of jeans does not sell today, a retailer can store it and sell it at a later time

Hybrid Offer

*In a fast food restaurant, they can inventory part of their service process example, inventory hamburgers for a limited period of time

*However, the outlet cannot inventory the entire service experience, the counter staff still need to serve the customers with the hamburgers and the hamburgers cannot be saved for the next day

*To reduce perishability, the airline must develop strategies to cope with fluctuating demand. This goal can be accomplished by making simultaneous adjustments in demand, supply and capacity

*One method of adjusting the demand is that the airline company can reduce the price or offer promotions during the low peak season to attract

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