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Characteristics of services - educator slides

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Characteristics of services - educator slides

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These are slides for educators that are based on following publication: Moeller, S. (2010), Characteristics of Services – A Customer Integration Perspective Uncovers their Value, Journal of Services Marketing, 24 (5), 359-368.

Four characteristics have been regularly applied to services: intangibility, heterogeneity, inseparability, perishability (IHIP). More and more exceptions occur which have resulted in substantial criticism. This paper aims to show that each characteristic is valid and useful when related to an individual aspect of services instead of being assigned to services as a single entity.

Based on customer integration, a framework (FTU framework) and a resource typology are developed. These approaches are the theoretical foundation of the analysis. The FTU framework and a resource typology reveal different aspects of services and allow the assignment of the IHIP characteristics to them. Intangibility is assigned to the service offering, heterogeneity and inseparability to customer resources, and perishability to the facilities of the provider. Assigning the IHIP characteristics more clearly to certain aspects of services reveals their origin and makes them more tractable. For example knowing that heterogeneity of services is due to customers resources makes it more predictable and manageable. Although the IHIP characteristics are both widely cited and criticized, existing research has only tried to find and establish new characteristic(s). The approach of this paper is original because it takes a more trenchant look at them in order to develop a framework identifying aspects of services for which they apply.

more on www.sabinebenoit.com

These are slides for educators that are based on following publication: Moeller, S. (2010), Characteristics of Services – A Customer Integration Perspective Uncovers their Value, Journal of Services Marketing, 24 (5), 359-368.

Four characteristics have been regularly applied to services: intangibility, heterogeneity, inseparability, perishability (IHIP). More and more exceptions occur which have resulted in substantial criticism. This paper aims to show that each characteristic is valid and useful when related to an individual aspect of services instead of being assigned to services as a single entity.

Based on customer integration, a framework (FTU framework) and a resource typology are developed. These approaches are the theoretical foundation of the analysis. The FTU framework and a resource typology reveal different aspects of services and allow the assignment of the IHIP characteristics to them. Intangibility is assigned to the service offering, heterogeneity and inseparability to customer resources, and perishability to the facilities of the provider. Assigning the IHIP characteristics more clearly to certain aspects of services reveals their origin and makes them more tractable. For example knowing that heterogeneity of services is due to customers resources makes it more predictable and manageable. Although the IHIP characteristics are both widely cited and criticized, existing research has only tried to find and establish new characteristic(s). The approach of this paper is original because it takes a more trenchant look at them in order to develop a framework identifying aspects of services for which they apply.

more on www.sabinebenoit.com

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Characteristics of services - educator slides

  1. 1. v CHARACTERISTICS OF SERVICES Moeller, Sabine (2010) "Characteristics of services – a new approach uncovers their value", Journal of Services Marketing, Vol. 24, Issue 5, pp. 359-368 https://doi.org/10.1108/08876041011060468 A NEW APPROACH UNCOVERS THEIR VALUE
  2. 2. ABOUT THE STUDY From the 1980s onward, the acceptance of the so-called IHIP characteristics (intangibility, heterogeneity, inseparability, and perishability) was widely observable. PURPOSE the focus of service marketing has changed the development of information and communication technology has advanced dramatically. Later, however, several criticisms on IHIP characteristics were voiced. This paper aims to show that each characteristic is valid and useful when related to an individual aspect of services instead of being assigned to services as a single entity. 1 2 Read the article: Moeller, Sabine (2010) "Characteristics of services – a new approach uncovers their value", Journal of Services Marketing, Vol. 24, Issue 5, pp.359-368. https://doi.org/10.1108/08876041011060468
  3. 3. IHIP CHARACTERISTICS GOODS SERVICESCRITICISM TANGIBLE HOMOGENOUS SEPARABLE NON-PERISHABLE INTANGIBLE HETEROGENOUS INSEPARABLE PERISHABLE There are usually more tangible objects in a service performance; Countless possibilities of standardization in services result in a reduction of heterogeneity; Far too many separable services to justify inseparability; Restricted possibilities of storage of service; Read the article: Moeller, Sabine (2010) "Characteristics of services – a new approach uncovers their value", Journal of Services Marketing, Vol. 24, Issue 5, pp.359-368. https://doi.org/10.1108/08876041011060468
  4. 4. WHAT DIFFERENTIATES A GOOD FROM A SERVICE? This research has analyzed the literature on IHIP to find a solution. One characteristic that foremost differentiates services from goods is INTEGRATION OF CUSTOMER RESOURCES NO CUSTOMER RESOURCES GOODS SERVICES WITH CUSTOMER RESOURCES John can create a landscape picture without anybody’s involvement. But if John wants to paint Ken’s living room, he needs access to it. Without this access to Ken’s resources, John cannot deliver the service. EXAMPLES OF CUSTOMER RESOURCES A car that is needed for repair A body that is needed for surgery Client data that is needed to file a tax return Read the article: Moeller, Sabine (2010) "Characteristics of services – a new approach uncovers their value", Journal of Services Marketing, Vol. 24, Issue 5, pp.359-368. https://doi.org/10.1108/08876041011060468
  5. 5. CONSEQUENCES TO IHIP CHARACTERISTICS INTANGIBILITY OF PERFORMANCE PROMISE DELIVERY IS INSEPARABLE FROM CUSTOMER RESOURCES HETEROGENOUS CUSTOMER RESOURCES PERISHABLE PROVIDER CAPACITY Services are usually sold as a performance promise; e.g. a tangible concert ticket only serves as proof and is not the service yet. Customer resources like a broken car are inseparable from the service process. It is not the customer but the customer resources that cannot be separated. Customer resources such as living room walls are always heterogenous; e.g. some families will have their living room cleared and ready for John to do his paintwork, while some might not. Production capacity of service providers is perishable when the customers are not integrated at the right time; e.g. John arrived at Ken’s house to paint his wall but Ken isn’t around. Read the article: Moeller, Sabine (2010) "Characteristics of services – a new approach uncovers their value", Journal of Services Marketing, Vol. 24, Issue 5, pp.359-368. https://doi.org/10.1108/08876041011060468

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