Question

QUESTION 3
The American Marketing Association defines services as - “Activities, benefits and satisfactions which are offered for sale or are provided in connection with the sale of goods.” It is the action of doing something for someone or something largely intangible tends to be an experience that is consumed at the point where it is purchased and cannot be owned. A person could go to a bank one day and have excellent service, and then return the next day and have a poor experience. This part discusses the special issues concerning the marketing of services. Explain the Four unique characteristics of services and give Four strategies to overcome each characteristic.

Footnote:
Answers should be augmented with specific illustrations and case study examples contextualized within the financial services sector. Generic answers will receive poor marks.

Answer 1

1) First unique characteristic of services is "Intangibility". To overcome this, the "Tangible" part of the services should be highlighted. For example, A Widow Insurance Claimant having her own house after receiving a death claim from her husband's Insurance policy. For Example, A person enjoying driving his car after receiving a car loan from his bank. A person enjoying his holiday after retirement after receiving his retirement maturity amout from a Mutual Fund.

2) The second unique characteristic is "Inseparability" means services cannot be separted from service provider. Though it is true but services can be separated from service provider for example, ATM is where there is no human touch, Third party mobile Apps, Usining more and more technology, use of robots.

3) Third unique characteristic is "PERISHABILITY". It is a fact that services are perishable but we can perform such tasks which are less perishable in nature. for example, goodwill generated by a bank by providing excellent services over decades, reputation generated by an Insurance company by providing fast claims over decades etc.

4) Fourth unique characteristic is "Variability". Though this is fact that services are variable in nature but we can make them constant in nature in many ways, for example, having a standard processes of banking over a long period of time, having softwares with unique features for over a long period of time. A bank providing constant ATM services over a long period of time.