Download Understanding the Differences and Importance of Goods and Services - Prof. Juanita Roxas and more Study notes Marketing Management in PDF only on Docsity! What are the major differences between goods & services? Good-Tangible, nonperishable,standardized Service-Intangible, perishable,Heterogeneous, Ability to Separate from Products (ex:hair stylist), What trends have contributed to increasing importance of services? Be able to Identify the trend if a situation is given. 1929, 55% of US working population in Service Sector, 54% of gross national product was generated by services in 1948. 2003 Services represented 81% of GDP & 81% of employment. Almost all the absolute growth in numbers of jobs and the fastest growth rates in job formation are in service sectors. Banking, transportation, & health care were some of the first service sectors. Why do customers seem to review that service quality is declining? Increasing self-service & technology-based service is perceived as less service because of no human interaction Technology based services (internet-based service, Automated voicemails) have many failures and are poorly designed Since some customers experience excellent service from some companies, they expect the same from every company and have higher expectations (frequently disappointed) Companies have cut cost and are too understaffed to provide quality service Less-skilled people working the front-line (cashier) because of the competitive job market; skilled employees get promoted Many companies give lip service to customer focus and service quality but they fail to provide the training, compensation, and support needed to actually deliver quality service. Delivery consistent high quality service is not easy, yet many companies offer it What are sources for customers expectations? (How is it that customers set expectations) The Sources of customer expectations are marketer-controlled factors (such as pricing, advertising, sales promises) as well as factors that the marketer has limited ability to affect (innate personal needs, word-of-mouth communications, competitive offerings). What factors can marketers use to control customer expectations? Price, advertising , sales promises What is the difference between transactional marketing and relationship marketing? Transactional- focuses on transactions... markets to getting new customers Relationship- Markets to retain existing customers. What is a service scape? The physical facility ex: exterior, interior and tangibles. What is interactive marketing? The marketing between contact people and customers. EX: Identify the service is high in search High search are usually for clothing, jewelry, houses..etc Where do consumers find information for services? (of those which are the most important sources) Personal Source- friends & family experience (word of mouth) Nonpersonal sources- Internet What is the evoke set? that set of products that a consumer considers acceptable in a given product category. (Simply put, it’s defined as the group of products or companies that come to mind when considering a purchase.) Identify the various components of a drama...(metaphor)
