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Services Marketing


Intangible activities or benefits that an organization provides to satisfy customers' needs in exchange for something of value

Intangibility, Inconsistency, Inseparability, and Inventory

Four unique elements of service


a service that cannot be held, touched, or seen before the purchase decision


reduced through standardization and training


the deliverer of service from the service itself


in services costs are subjective

Inventory carrying cost

depends on the cost of the employees and equipment

idle production capacity

a service provider is available but there is no demand


one reason service providers must maintain production capacity

service continuum

market range from the tangible to the intangible or good-dominant to service-dominant offerings

supplementary services

allow service providers to differentiate their offering from competitors , and may add value for the consumer

delivered method, profit or nonprofit,government sponsored

Services can be classified in three ways


customers really want; engaging, personable, and memorable offerings

facilitate customization, personal interaction, sharing interests, manage reputation

How do service providers ensure authentic offerings?

search, experience, and credence

used to evaluate services(3)

search properties

tangible services have

experience properties

intangible services have

credence properties, impossible to evaluate

services by specialized professionals have

opinion leaders and reference groups

customers use these during the decision process

gap analysis

difference between customers expectations and experience

word of mouth communications, personal needs, past experiences, and promotional activities

Expectations are influenced by (4)

delivery of service

Experiences are influenced by

customer contact audit

a flowchart of the points of interaction between consumer and service provider ...made by Hertz

reliability, tangibles, responsiveness, assurance, empathy

Five dimensions of service quality


ability to perform the promised service dependably and accurately


appearance of physical facilities, equipment, personnel, and communication materials


willingness to help customers and provide prompt service


knowledge and courtesy of employees and their ability to convey trust and confidence


caring, individualized attention provided to customers

relationship customers

terms of loyalty, benefits, and respect for privacy and higher expectation of future use of service

product, price, place, promotion, people, physical environment, process, and productivity

eight Ps of services marketing

service identities

logos create

off-peak pricing

charging different prices during different times of the day or during different days of the week to reflect variations in demand for the service

perceptions of service

prices influence


showing customers the benefits of purchasing the service

Internal marketing

focusing on its employees before successful programs can be directed at customers

Customer experience management(CEM)

process of managing the entire customer experience with the company

capacity management

the service component of the marketing mix is integrated with efforts to influence customer demand

demand matches capacity and organizations assets maximize ROI

the availability of the offering for service organizations must include these (2)

Return on investment


technology advances and the expanding global economy

future factors that will chance service

mobility, convergence, personalization, collaboration

future elements of services

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