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
*Lack of tangible assets which can be seen, touched, smelled, heard or taste prior to purchase. E.g., education, air travel, sporting events, highly intangible
*Purchasing movie ticket, buy you an experience, services subjectively evaluated
*Own set of perceptions and expectations, opinions differ regarding value of experience
*Customer returns home with a memory of experience and obtain physical ownership
*Anything that can be offered to a market for attention, acquisition, use, or consumption that might satisfy a want or need
*Tangible assets; seen, felt, tasted or touched
*E.g. shoes, objectively evaluated before actual purchase
*Take shoes home, have ownership and physical possession of a tangible object
*Offer a tangible product with their service, service is still intangible because consumer are purchasing the service, not the good
*Restaurant, consumer are paying the restaurant to prepare the food for them
*Evaluation of service is based on how well the restaurant prepared the food
*To reduce intangibility, an airline company feature tangible assets such as their airplanes, pilots, flight attendants, or other personnel in an advertisement
*Refers to the service provider's physical connection to the service being provided
*Involve customer's involvement in the service production process
*Service is performed and consumed at the same time, with the quality of service highly dependant on the ability of the service provider and quality of interaction between the service provider and the customer
*E.g., getting a haircut, customer will go to the hair stylist and being present while the service is being produced
*In contrast, products are produced and sold at a later time
*E.g., television is produced at the factory and sold at a later time
*Is in the case of getting medical services. Dentist is using filling to fill cavities for the customer while the customer is present
*To reduce inseparability or the dependence on the customer-employee interaction, an airline company can sell its air tickets through the internet where customers can buy air tickets directly from their website.
*Unwanted at random levels of service quality customers receive when they patronize a service
*Primarily caused by human element, although machines may malfunction causing a variation in the service
*Various employees will perform the same service differently and even the same service
*E.g, commercial window cleaning, the outcome will differ if the firm uses different employees each time a business is services
*Goods are mass-produced by factories and as such their features, ability and usage are the same
*E.g. telephone are mass-produced in the factories and sold to customers offering the same features, abilities and usage
*Fast food restaurant, the hamburgers, French fries and other food are mass produced and put in warming bins. Customers are served with hamburgers, French fries and other food when they ordered and served by service staff at the counter
*To reduce variability, the airline company can put their service staff through intensive training or customize the service based on the customer's specific...