MENGENAL APA ITU SERVICE MARKETING - MARKET THINK #22

Summary

The video delves into the differences between product and service marketing, explaining that products are tangible, created before consumer interaction, and can be tested, while services are intangible, co-created with the customer, and cannot be physically tested beforehand. The speaker discusses the challenges of service marketing, such as managing consumer perceptions and risks, and how businesses address these through guarantees and improving the overall customer experience. Key elements in service marketing include people, process, and physical evidence, all of which help reduce perceived risks and improve consumer trust.

Takeaways

• 😀 The distinction between product marketing and service marketing is significant. Products can be touched or tested, while services are intangible and often involve collaboration with the consumer.
• 😀 Products are created independently by manufacturers before being sold, whereas services are co-created with the consumer during the delivery process.
• 😀 A product can be physically tested (like a phone or a car), but services like haircuts or movie experiences cannot be directly tested beforehand.
• 😀 In service marketing, the 'product' being sold is the service itself (e.g., a haircut, car repair), not a physical object.
• 😀 Services are inherently intangible and often come with perceived risks. Consumers cannot always assess the quality before purchase, creating a need for marketing strategies that minimize these risks.
• 😀 The concept of 'consumer perception' is crucial. Service providers need to address potential doubts or uncertainties that customers might have about the quality of the service.
• 😀 Service marketing evolved from the traditional 4P's of marketing to the 7P's, adding 'People,' 'Process,' and 'Physical evidence' as essential factors in service delivery.
• 😀 The 'People' factor emphasizes that the staff's professionalism and appearance play a major role in shaping the customer's perception of a service's quality.
• 😀 'Process' refers to the efficiency and quality of service delivery. A smooth and hassle-free process enhances customer satisfaction.
• 😀 'Physical evidence' refers to tangible elements (like a hotel's lobby or a restaurant's interior) that help customers assess the service quality, even if the actual service is intangible.

Q & A

What is the main difference between product and service marketing?

The main difference is that product marketing deals with tangible items that can be touched and tested before purchase, while service marketing involves intangible offerings that are experienced after purchase, making it harder for consumers to evaluate beforehand.

Why is service marketing more complex than product marketing?

Service marketing is more complex because services are intangible, meaning consumers cannot physically assess them before purchasing. This increases the perceived risk and requires marketers to find ways to minimize uncertainty through cues like people, process, and physical evidence.

Can services be evaluated before purchase, similar to products? Why or why not?

No, services cannot typically be evaluated before purchase because they are intangible. Consumers cannot test or touch a service before experiencing it, unlike products that can be physically inspected and tried.

What does the term 'co-created with the consumer' mean in the context of service marketing?

In service marketing, 'co-created with the consumer' means that the service is developed or delivered in collaboration with the consumer. For example, when getting a haircut, the consumer is involved in the process, and the outcome is customized based on their preferences.

What are some ways marketers minimize the perceived risk in service marketing?

Marketers minimize perceived risk by providing guarantees, showcasing the quality of service through cues like professional staff (people), offering easy and efficient processes, and using physical evidence like clean environments to assure customers of the service's quality.

What role do 'people' play in service marketing?

'People' play a crucial role in service marketing because consumers often judge the quality of a service based on the professionalism and appearance of the staff. For example, in a hotel or salon, the staff's demeanor and presentation can significantly influence the consumer's perception.

Why is 'process' important in service marketing, and how does it affect consumer perception?

The 'process' refers to the steps or procedures involved in delivering the service. If the process is complicated or inefficient, it can create frustration and reduce the consumer’s perception of the service quality. A smooth and easy process, on the other hand, builds trust and satisfaction.

What is the significance of physical evidence in service marketing?

Physical evidence in service marketing refers to the tangible elements that can influence the consumer’s perception, such as the ambiance of a restaurant or hotel lobby. These physical cues help reassure customers about the quality of service they are about to receive, even though the service itself is intangible.

How does risk perception affect consumer decisions in service marketing?

Risk perception significantly influences consumer decisions in service marketing because consumers are uncertain about the outcome of services they cannot evaluate beforehand. The perceived risk of poor service, like a bad haircut or a disappointing movie, can deter consumers from purchasing unless mitigated by guarantees or other reassurances.

What is a common strategy used in service marketing to reassure consumers about the quality of the service?

A common strategy is offering risk-reducing measures such as money-back guarantees or service warranties. For example, restaurants may offer free meals or revisions if the customer is not satisfied, providing reassurance that the consumer will not be left with a poor experience.