Chapter 1An Introduction to Services1CHAPTER 1:AN INTRODUCTION TO SERVICES"It’s just the little touches after the average man would quit that makes the master’sfame."Orison Swett Marden,Founder,SuccessmagazineChapter Objectives:This chapter provides an introduction to thefield of services marketing.Thechapterdiscussesthebasic differences between goods and services and the factors necessaryfor the creation of the service experience.In addition, the chapter establishes theimportance of the service sector in the world economy and the need for servicesmarketing education.Learning Objectives:After reading this chapter, you should be able to1.Understand the basic difference between goods and services.•In general, goods are defined as objects, devices, or things, whereas servicesare defined as deeds, efforts, orperformances (The term product refers to bothgoods and services and is used in such a manner throughout the remainder ofthis text).2.Develop an appreciation for how service can be used as a competitiveadvantage for both intangible and tangible products.•The scale of market entities displays a continuum of products based on theirtangibility where goods are tangible dominant and services are intangibledominant. The core benefit of a tangible dominant product typically involves aphysical possession that contains service elements to a less degree. Incontrast,intangible dominant products do not involve the physical possession of a productand can only be experienced.3.Appreciate thefactors thatcreate the customer's service experienceand why itis important to manage the overall experience.•The Servuction model is constructed of two parts: that which is visible to theconsumer and that which is not.The visible part of the Servuction model consistsof three parts: the inanimate environment, the contact personnel/service➢PowerPoint Slide: #2➢PowerPoint Slide: #1Preview Mode
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