Question

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.

Answer 1

Anwer:

Service businesses have unique characteristics that should be explored and understood when developing a marketing plan and competitive strategy.The four characteristics of service businesses and strategy to deal with the challanges inherent in each characteristics are as follows:

i)Intangibility:Services are intangible.Most services cannot be experienced or consumed until the purchase is made.Customers can easily end up feeling they have to make a purchasing decision without adequate information.

How to overcome this challenge:Communication,communication can from a variety of sources.The use of customer testimonials and referrals is an excellent way to reduce the level of intangibility for your service.Additionally,you can improve customer comfort by explaining your service in as much detail as possible.

ii)Inseparability:Services are unique because they are provided and consumed at the same time and in the same location(e.g.Hair cut).Because of the characteristics of inseparability,customers have strong expectation about how a service will be provided,which can lead to disappointment if their expectations are not met.

A solid customer service process is the key to managing this challenge effectively.If you don't know the level of customers' satisfaction with your service,ask them.

iii)Perishability:Services are often perishable,meaning that unused capacity cannot be stored for future use or sale.For example a restaurant might be full one night and half empty the next.If the restaurant runs with an inflexible staffing model,expenses are the same each night.

This challange can be overcome by carefully managing supply and demand.A restaurant might operate with fewer staff during the week and hire additional staff to cover weekends when demand is higher.This strategy will allow the restaurant to provide same level of service with varying customer demand.

iv)Variability:The quality of service can vary by many factors,including who provide it,where it is provided,and how it is provided.The more your business relies on humans to provide service,the more susceptible you are to variability.

Establishing standard procedure can ensure consistent service delivery.If you have employees training is essential.

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