Week 10

Question 1

What are services?

Answer 1

• Activities, performances or benefits that provide value and are offered for sale, but which involve neither an exchange of tangible goods nor a transfer of title

Question 2

What are the qualities that help classify products (goods & services)?

Answer 2

• Search Qualities → Qualities that can be objectively evaluated prior to purchase
• Experience Qualities → Qualities that are mostly likely to be evaluated during and after service delivery
• Credence qualities → Qualities that cannot even be assessed after the service has been consumed

Question 3

What are the unique characteristics of services?

Answer 3

• Intangibility → the characteristic of lacking physical form
• Inseparability → the characteristic of being produced and consumed simultaneously
• Heterogeneity → Inevitable, but minimisable, variations in quality in the delivery of a service product
• Perishability → the inability to store services for use at a later date

Question 4

What are the service components of the extended marketing mix?

Answer 4

• People → any person coming into contact with customers, who can affect value for customers
• Process → the systems used to create, communicate, delivery and exchange an offering
• Physical evidence → tangible cues that can be used as a means to evaluate service quality prior to purchase