Fig 1.1: Scale of Market Entities
Scale of marketing entities
The scale that displays a range of products along a continuum based on their tangibility. Pure go Tangibleods are tangible dominant, where as pure services are intangible dominant. Businesses which contain both good and service contain, fall in the middle of the continuum. Another way of looking at the difference between goods and services is provided by the scale of marketing entities.
Product that possess a physical properties that can be felt, tasted, and seen ...view middle of the document...
Fig 1.2: The Molecular Model
The molecular model:
The conceptual model of the relationship between tangible and intangible components of a firms operation. Another method to understand the difference between goods and services. The molecular model reinforces our understanding that virtually all products have both tangible and intangible elements. It is a management tool that an offers the opportunity to visualize a firm’s entire market entity. With tangible dominant product, good knowledge is obtained by focusing on the physical aspects of the product. In contrast, consumers evaluate intangible dominant products based on the experience that surrounds the core benefit of the product.
The figure 1.2 provides an example of such entity which has both the tangible and intangible aspects.
Restaurant has both the tangible and intangible aspect as the food & drink, menu chart table & chair are the tangible part of the restaurant whereas taste, environment. Services are the intangible part of the restaurant. For a restaurant both the aspect is important. Food quality is not alone sufficient for the restaurant if it lacking other factors.
Figure 1.3: The Servuction Model
The servuction model is constructed of two parts that which is visible to the consumer and that which is not visible to the consumer. The visible parts of the servuction model consists three parts: the inanimate environment, service providers and other customers. The invisible component of the model consists of the invisible organization systems.
Inanimate environment mean all the nonliving features that are present during the service encounter. The tangible aspects of a service influence the decision. In the absence of a tangible product, consumers look for tangible cues that surrounds the service on which to base their service performance evaluation as it is difficult to evaluate service. For example, physical appearances, visibility, neatness, equipments etc.
Service provider mean the primary providers of a core service, such as d dentist, college instructor.
Contact personnel mean the employees other than the primary service provider who briefly interact with the customer.
Other customer: To complete the visible portion of the servuction model, need to introduce customer A and customer B.
Customer A is the recipient of...