![]() For some services, market conditions may dictate the price for others, state and local government regulations may limit price flexibility. Because services are intangible, customers may rely on price as a sign of quality. When services are offered in a bundle, marketers must decide whether to offer them at one price, price them separately, or use a combination of the two methods. The point in time when a significant number of customers desire a service is called peak demand demand-based pricing results in higher prices charged for services during peak demand. Perishability creates difficulties in balancing supply and demand because unused capacity cannot be stored. The prices of services are based on task performance, time required, or demand. Heterogeneity and intangibility make word-of-mouth communication an important means of promotion. Intangibility makes it difficult to experience a service before purchasing it. Through their actions, service personnel can be involved directly or indirectly in the personal selling of services. Service providers are likely to promote price, guarantees, performance documentation, availability, and training and certification of contact personnel. Advertisements with tangible cues that symbolize the service and depict facilities, equipment, and personnel help address these challenges. The intangibility of services poses several promotion-related challenges. Service marketers are less concerned with warehousing and transportation than are goods marketers, but inventory management and balancing supply and demand for services are important issues. Marketing channels for services are usually short and direct, but some services employ intermediaries. Some services require that customers come to the service provider?s facility others are delivered with no face-to-face contact. The development and management of service products are also influenced by the service characteristics of inseparability and level of customer contact. To address the problem of intangibility, marketers use cues that help assure customers about the quality of their services. Because of the characteristics of services, service marketers face several challenges in developing and managing marketing mixes. Customer contact is the interaction between providers and customers needed to deliver a service.Ĭore services are the basic service experiences customers expect supplementary services are those that relate to and support core services. Client-based relationships are interactions with customers that lead to the repeated use of a service over time. Heterogeneity is variation in service quality. Perishability means unused service capacity of one time period cannot be stored for future use. Inseparability refers to the fact that the production of a service cannot be separated from its consumption by customers. Intangibility means that a service cannot be seen, touched, tasted, or smelled. They have six fundamental characteristics: intangibility, inseparability of production and consumption, perishability, heterogeneity, client-based relationships, and customer contact. They are the result of applying human or mechanical efforts to people or objects. Thesis at Utrecht University, Human Geography and Planning.Services are intangible products involving deeds, performances, or efforts that cannot be physically possessed. Services marketing: Integrating customer focus across the firm (7th ed.). Marketing to today’s distracted consumer. Marketing plans for services: A complete guide (3rd ed.). ![]() Journal of Travel Research, 35(3), 16–22. Destination price-value perceptions: An examination of origin and seasonal influences. ![]() Hospitality and travel marketing (4th ed.). Journal of Theoretical and Applied Electronic Commerce Research, 9(1), 28–43. Determinants of E-WOM influence: The role of consumers’ internet experience. Harvard Business Review, July/August, 45–56. Marketing for hospitality and tourism (7th ed.). Kotler, P., Bowen, J., Makens, J., & Baloglu, S. Services marketing: Concepts, strategies and cases (5th ed.). Journal of Transport Geography, 14(4), 249–264. An analysis of European low-cost airlines and their networks. Melbourne, Australia: Longman.ĭobruszkes, F. The economics of travel and tourism (2nd ed.). A new way to measure word of mouth marketing. Journal of the Academy of Marketing Science, 23(4), 246–251.īughin, J., Doogan, J. Building service relationships: It’s all about the promise. The impact of physical surroundings on customers and employees. Chicago: AMA Proceedings Series.īateson, J. Marketing strategies and organisation structures for service firms.
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