Lesson 21 Flashcards
Service is central to marketing value creation due to what three fundamental concepts
Consumers buy value, which is a bundle of benefits tangible and intangible
Value is cocreated through interactions between the consumer and the company
The consumer defines what value is
Why are firms largely reluctant to invest in delivering great service
It takes time and patience before ROI is noticeable
Characteristics of services
Intangibility, inseparability, variability, perishability
What does variability mean?
Because the service cannot be separate a promise provider, the services quality can only be as good as the quality of the provider
Intangibility
Service cannot be experience like a physical good
Inseparability
Services produced and consumed simultaneously and cannot be separated by the provider
Perishability
Service cannot be stored are safe for future use
