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Services Marketing Copyright 169。 Houghton Mifflin Company. All rights reserved. PowerPoint Presentation by Charlie Cook 13 Part Three Product Decisions Chapter Learning Objectives ? To understand the nature and importance of services ? To identify the characteristics of services that differentiate them from goods ? To describe how the characteristics of services influence the development of marketing mixes for services ? To understand the importance of service quality and explain how to deliver exceptional service quality ? To explore the nature of nonprofit marketing 2 Copyright 169。 Houghton Mifflin Company. All rights reserved.* Chapter Outline ? The Nature and Importance of Services ? Characteristics of Services ? Developing and Managing Marketing Mixes for Services ? Service Quality ? Nonprofit Marketing 3 Copyright 169。 Houghton Mifflin Company. All rights reserved.* The Nature and Importance of Services ? Service –An intangible product involving a deed, performance, or effort that cannot be physically possessed –Application of human and/or mechanical efforts directed at people or objects ? Service Facts (.) –Service industries account for over 50% of GDP. –Service industries employ 80% of nonfarm workers. –More than half of new businesses are service firms. –Services have increased in tandem with the longterm growth of the . economy. 4 Copyright 169。 Houghton Mifflin Company. All rights reserved.* Characteristics of Services ? Intangibility –Services are actions that have no permanent physical qualities as opposed to goods which can be touched and possessed over time. ? Inseparability of Production and Consumption –The production of a service cannot be separated from its consumption by the customer. ? Services are produced, sold, and consumed all at the same time. ? Perishability –Services cannot be produced ahead of time and stored until needed. 5 Copyright 169。 Houghton Mifflin Company. All rights reserved.* The Tangibility Continuum FIGURE 6 Copyright 169。 Houghton Mifflin Company. All rights reserved.* Chara