Chapter 13: Designing and Managing Services
Market for services is an important space that exists globally. Similar to goods, services are also highly demanded and consumed by consumers in order to satisfy their needs and wants. In this contemporary world, it has become harder to differentiate between services. Taking into consideration the profitability of providing services, marketers are involved in designing and managing effective service marketing strategies in order to encourage customer’s loyalty through creating memorable customer experiences.
A service is defined as an act or performance offered by one party to another which is intangible and does not involves transfer of ownership. There are four distinct characteristics found in services. Firstly, it is intangibility which means that we cannot touch, hear, smell, taste and see the services as they lack physical existence. Afterwards, it is the inseparability which means that services are consumed immediately as they are produced. Furthermore, services are variable in terms of quality. Certain service providers are appreciated for providing high quality, efficient services as compared to others. Lastly, services cannot be stored as they are perishable in nature. A marketer’s focus is to develop strategies which are based on the modern and updated characteristics to ensure well differentiated services to the consumers.