Customers Do Not Obtain Ownership - Principles of service marketing management

Perhaps the key distinction between goods and services lies in the fact that customers usually derive value from services without obtaining permanent ownership of any substantial tangible elements.

In many instances, service marketers offer customers the opportunity to rent the use of a physical object like a car or hotel room, or to hire the labor and skills of people whose expertise ranges from brain surgery to knowing how to check customers into a hotel.

As a purchaser of services yourself, you know that "while your main interest is in he final output, the way in which you are treated during service delivery can also have an important impact on your satisfaction.

customers do not obtain ownership of services service products are intangible performances there is greater involvement of customers in the production process other people may form part of the product there is greater variability in operational inputs and outputs many services are difficult for customers to evaluate there is typically an absence of inventories the time factor is relatively more important delivery systems may involve both electronic and physical channels

Customers Do Not Obtain Ownership

Checking in: People are part of the product in hotel services. customer satisfaction depends on both employee performance and the behavior of the other customers.

Intangible: something that is experienced and cannot be touched or preserved.

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