Core Concepts of Marketing

158 CHAPTER 7 INTRODUCINGANDMANAGINGTHEPRODUCT

SimultaneousProductionandConsumption Serviceproductsarecharacterizedas

thosethatarebeingconsumedatthesametimetheyarebeingproduced.Thetouristattrac-

tionisproducingentertainmentorpleasureatthesametimeit isbeingconsumed.Incon-

trast,goodsproductsareproduced,stored,andthenconsumed. A resultofthischaracteristic

isthattheprovideroftheserviceisoftenpresentwhenconsumptiontakesplace.Dentists,

doctors,hairstylists,andballetdancersareallpresentwhentheproductis used.

LittleStandardization Becauseserviceproductsaresocloselyrelatedtothepeo-

pleprovidingtheservice, ensuringthesamelevelofsatisfactionfromtimetotimeis quite

difficult.Dentistshavetheirbaddays,noteverybaseballgameis exciting,andthesecond

vacationtoDisneyWorldmaynolbeaswonderfulasthefirst.

High BuyerInvolvement Withmanyserviceproducts,thepurchasermayprovide

a greatdealofinoutintothefinalformoftheproduct.Forexample,ifyouwantedtotake

a Caribbeancruise., a goodtravelagentwouldgiveyoua largeselectionofbrochuresand

pamphletsdescribingthevariouscruiselocations,optionsprovidedintermsofcabinloca-

tion~!1dsize,islandsvisited,food,entertainment,prices,andwhethertheyaresetupfor

children.Althoughthetaskmaybequitearduous,anindividualcanliterallydesignevery

momentofthevacation.

Ilshouldbenotedthatthesefourcharacteristicsassociatedwithserviceproductsvary

inintensityfromproducttoproduct.Infact,serviceproductsarebestviewedasbeingon

a continuuminrespecttothesefourcharacteristics.(SeeFigure7.2.)

Thepointofthisdisclaimeristosuggest:(1)thatserviceproductsontherightside

ofthecontinuum--e.g.,highintangibility-aredifferentfromgoodproductsontheleftside

ofthecontinuum,(2)thatmostmarketinghastraditionallytakenplaceontheleftside,and

(3)serviceproductstendtorequirecertainadjustmentsintheirmarketingstrategybecause

ofthesedifferences.

CHARACTERISTICSTHATDISTINGUISHGOODSFROMSERVICES

Pure Pure

Goods Services

!---II--+----+-----------t------I

Salt VCR Auto FastFood Customer Airlines Teaching Investment

Restaurant Clothes Advice

Tangible.( ~Intangible

LowCustomer I'HighCustomer

Involvement Involvement

LowQuality ~ )0 HighQuality

ControlProblems ControlProblems

EasytoEvaluate 0( • HardtoEvaluate

Inventories 0( • NoInventories

NoTimeCriteria0( • StrictTimeCriteria

LowImportanceof 0( >HighImportanceof

ContactPoints ContactPoints

FIGURE7.2 Characteristicsthatdistinguishgoodsfromservices