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Managing Services in Business

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Questions and Answers

What is the key difference between selling a service and selling a product?

The buyer can own the service.

The buyer can physically hold and feel the service.

The buyer cannot hold and feel the service. (correct)

The buyer's experience is not important in service selling.

How do McDougall and Snetsinger (1990) define intangibility in the context of services?

The degree to which a product or service can provide a clear concrete image.

The lack of physical evidence and the degree to which a product or a service cannot provide a clear concrete image. (correct)

Services can be seen, tasted, felt, heard, or smelled before buying.

The lack of importance of physical evidence.

What does inseparability mean in the context of services?

The state of being incapable of being separated or divided. (correct)

The inability to market the service effectively.

The ability to separate the service from the product.

The quality of being able to divide the service.

What is the main difference between selling a service and selling a product?

The buyer can hold and feel a product, but not a service. Signup and view all the answers

Which characteristic of services is defined as 'the lack of physical evidence'?

Intangibility Signup and view all the answers

What is the primary focus of service marketing?

Bringing the service to market and creating desire for it Signup and view all the answers

According to McDougall and Snetsinger (1990), services cannot be seen, tasted, felt, heard, or smelled before buying due to their:

Intangibility Signup and view all the answers

What is the meaning of 'inseparability' in the context of services?

The inability to divide a service into different parts Signup and view all the answers

Study Notes

Selling Services vs. Selling Products

Key difference: Services are intangible, perishable, variable, and inseparable from the provider, whereas products are tangible and separable from the manufacturer.

Intangibility

Defined by McDougall and Snetsinger (1990) as the inability to see, taste, feel, hear, or smell a service before buying due to its non-physical nature.

Inseparability

Means that services are produced and consumed simultaneously, making it impossible to separate the service from the provider.

Characteristics of Services

Lack of physical evidence: services cannot be seen, touched, or demonstrated before purchase.

Primary Focus of Service Marketing

Emphasizes creating an intangible experience for the customer, focusing on the service itself rather than the physical product.

Service Characteristics

Intangible: services cannot be perceived through senses before buying due to their non-physical nature.
Inseparable: services are produced and consumed simultaneously, making it impossible to separate the service from the provider.

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Description

Test your knowledge on designing and managing services in business. Services, such as banking, communication, education, medical treatments, and more, are intangible offerings that require unique strategies for marketing and sales.