Podcast
Questions and Answers
What is essential for effective product differentiation among formally marketed products?
What is essential for effective product differentiation among formally marketed products?
- Feature and Styling (correct)
- Price and Credit Terms
- Warranty and Repairs
- Core Functionality
What term describes the balance needed between service demand and service supply to avoid lost revenues?
What term describes the balance needed between service demand and service supply to avoid lost revenues?
- Demand forecasting
- Market Demand Analysis
- Service Optimization
- Capacity Management (correct)
Which of the following is NOT a characteristic of services?
Which of the following is NOT a characteristic of services?
- Services result in ownership transfer (correct)
- Services can vary in quality
- Services are performed or delivered
- Services are inherently intangible
Which type of demand refers specifically to consumer interest in a particular brand?
Which type of demand refers specifically to consumer interest in a particular brand?
Which factor is associated with Augmented Products?
Which factor is associated with Augmented Products?
What does service intangibility imply about a service?
What does service intangibility imply about a service?
What is the main reason measuring market demand can be challenging?
What is the main reason measuring market demand can be challenging?
What type of demand exists when there is consumer interest but no product or service satisfies that desire?
What type of demand exists when there is consumer interest but no product or service satisfies that desire?
Which of the following is an example of a core or generic product?
Which of the following is an example of a core or generic product?
What term is used to describe physiological necessities required for human survival?
What term is used to describe physiological necessities required for human survival?
Which of the following elements could effectively differentiate a formal product from its competitors?
Which of the following elements could effectively differentiate a formal product from its competitors?
Which of these options signifies the variability associated with services?
Which of these options signifies the variability associated with services?
Which of the following defines a market in the context of customer purchasing capabilities?
Which of the following defines a market in the context of customer purchasing capabilities?
Which of the following describes an augmented product offering effectively?
Which of the following describes an augmented product offering effectively?
Which type of management focuses on the appropriate level of services to meet customer demand?
Which type of management focuses on the appropriate level of services to meet customer demand?
What is the difference between wants and demands?
What is the difference between wants and demands?
What is one way to overcome the intangibility of services?
What is one way to overcome the intangibility of services?
Which of the following describes service variability?
Which of the following describes service variability?
Why is inseparability significant in service delivery?
Why is inseparability significant in service delivery?
Which method can help reduce service perishability?
Which method can help reduce service perishability?
What is a common characteristic of services related to intangibility?
What is a common characteristic of services related to intangibility?
Which of the following strategies is effective in managing service variability?
Which of the following strategies is effective in managing service variability?
What is the impact of service perishability on providers?
What is the impact of service perishability on providers?
How can service providers enhance their offerings to create a differentiated product?
How can service providers enhance their offerings to create a differentiated product?
Study Notes
Service Characteristics
- Intangibility: Services cannot be physically experienced or owned; buyers only understand them through use.
- Examples: Plastic surgery and legal services highlight the experience-based nature of services.
Overcoming Intangibility
- Taglines: Effective slogans can convey service essence.
- Showcasing Previous Customers: Display testimonials and outcomes to visualize service benefits.
- Customer Involvement: Let customers witness service delivery.
- Visual Aids: Use infographics for appealing presentations.
- Campaigns and Commercials: Promote services creatively through media.
Variability
- Nature of Variability: Inconsistency in service delivery due to different personnel and circumstances.
- Example: Airline service quality can differ based on crew and passenger interactions.
Strategies to Manage Variability
- Employee Training: Equip staff with skills for consistent service delivery.
- Automation: Implement technology to standardize services.
- Standard Operating Procedures (SOPs): Use documented processes to maintain uniformity.
Inseparability
- Concept: Services are produced and consumed simultaneously with customer participation.
- Example: Quick service setups require the service provider's presence.
Managing Inseparability
- Technology Utilization: Incorporate tech to ease service delivery.
- Service Franchising: Establish a franchising model for standardized service across multiple locations.
Perishability
- Definition: Services cannot be stored; once offered, they cannot be retrieved.
- Market Adjustment: Adjust marketing tactics to balance supply and demand.
Levels of Product
- Core Product: Refers to the primary purpose of a product; differentiation is crucial to marketing.
- Formal Product: Encompasses features that distinguish offerings such as styling, price, and color.
- Augmented Product: Involves added services to enhance customer experience for high-cost items, such as credit and warranty provisions.
Examples of Product Levels
- Formal Products: Jackets, clothing, accessories.
- Augmented Products: Luxuries like Prada, Burberry, Rolex.
- Core Products: Essential goods like phones and bags.
Understanding Services
- Definition: Services are activities or benefits provided to others, lacking ownership transfer.
- Intangible Experience: Cannot be perceived like tangible goods.
Addressing Perishability
- Capacity Management: Balance service availability with customer demand to avoid losses.
Market Concepts
- Needs vs. Wants: Needs are essential for survival, while wants are psychological preferences.
- Demands: Wants supported by purchasing capability drive market behavior.
Market Demand
- Definition: Market consists of individuals or organizations willing and able to buy specific products.
- Primary vs. Selective Demand: Primary demand refers to total demand for a product class; selective demand targets a specific brand.
Measuring Market Demand
- Challenges in the Philippines: Lack of accurate industry data necessitates survey-based demand estimates.
- Potential Demand: Exists when a market can afford a product but hasn't yet acquired it.
- Latent Demand: Occurs when customer desires are unmet due to product unavailability or high prices.
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Description
Explore effective strategies to overcome the intangibility of services in marketing. This quiz covers methods such as taglines, customer showcases, and visual campaigns. Boost your understanding of how to enhance customer experience and trust in services like plastic surgery or legal advice.
