Eight common differences between services and goods but they do not apply equally to all services.

Give an example of each implications of these differences?

and propose a solution task for each

What are marketing implications of these differences? 2010 by Love Chapter 1 - Page 3 Differences, Implications, and Marketing-Related Tasks Implications Difference . Most service products cannot be inventoried Customers may be turned away Intangible elements usually dominate value creation Services are often difficult to visualize & understand Customers may be involved in co- production Harder to evaluate service & distinguish from competitors Greater risk & uncertainty perceived Interaction between customer & provider; poor task execution could affect satisfaction Marketing-Related Tasks Use pricing, promotion, reservations to smooth demand; work with ops to manage capacity Emphasize physical clues, employ metaphors and vivid images in advertising Educate customers on making good choices; offer guarantees Develop user-friendly equipment, facilities & systems; train customers, provide good support Side 2010 by Lock & Vit Chapter 1 - Page Differences, Implications, and Marketing-Related Tasks Difference People may be part of service experience Operational inputs and outputs tend to vary more widely Implications Behavior of service personnel & customers can affect satisfaction Hard to maintain quality consistency, reliability Difficult to shield customers from failures Time is money; customers want service at convenient times Electronic channels or voice communications Marketing-Related Tasks Recruit, train employees to reinforce service concept Shape customer behavior Redesign for simplicity and failure proofing Institute good service recovery procedures Find ways to compete on speed of delivery: offer extended hours Create user-friendly secure websites and free access by telephone Time factor often assumes great importance Distribution may take place through nonphysical channels