Oct 17, 2011

Characteristics of Services


Most services can be characterized as having experience attributes (where product quality is determined only after usage) rather than search attributes (where product quality can be ascertained before purchase).
The main characteristics of services are intangibility (lack of physical attributes). nonstandardization (because they are usually delivered by people), and inseparabil­ity of production and consumption.
Service quality is defined by the service provider's reliability, responsiveness, assur­ance, empathy, and tangibles (service features or physical aspects of the service delivery).
Service quality is assessed negatively when there is a gap between customer expec­tations and experienced quality.
Service quality can be measured through the use of survey instruments such as SERVQUAL; the financial return on investments in service quality can also be evaluated.
Some strategic issues in services marketing are making the service tangible to customers, combating low entry barriers, and using service blueprints to design services.
Because of the people-intensive nature of most services, globalizing a service business requires special attention to culture, labor market, customer expectations of service, and other conditions.
New technologies in services marketing affect channels of distribution, improved standardization of service offerings, and the establishment of competitive advantage.

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