The opportunities and challenges of marketing Services
The Opportunities and Problems in Making Services More Tangible
Chandhaluk Heesawat (Ph. D.)
Assumption University bp3905@yahoo.com Abstract. This paper gives the readers the background to understand how intangibility of services affects customers’ evaluation of service quality. The paper begins with the various views regarding intangibility of services from scholars. Some view intangibility as important characteristics in distinguishing products from services. Others look at intangibility as insufficient condition to divide products and services. Then, the two main approaches of tangibilization, operation-based and marketing-based tangibilization are examined. The opportunities and problems in tangibilizing services are followed. Next, managerial implications tell marketing practitioners how they should exploit the opportunities and minimize the impacts of tangibilization problems. The paper is ended with the future research to give readers the list of unanswered questions in the areas of service tangibilization. 1. Introduction
Among the four characteristics; intangibility, inseparability, variability, and perishability; which differentiate products from services, there is argument that the single most important characteristic is intangibility. Moreover, it has been said that intangibility is the key to determining whether or not an offering is a service or product (Zeithaml and Bitner, 1996).
Indeed, the broad definition of services implies intangibility as a key determinant of whether an offering is a service or not
(Oberoi and Hales, 1990; Zeithaml and Bitner, 1996). This intangibility characteristic has a profound effect on the marketing of services (Lovelock, 1991; Rushton and Carson,
1989). This characteristic, intangibility, has been found in many literatures to be the most likely reason for the other three characteristics; inseparability, variability, and perishability.
However, some scholars have argued that the
Chandhaluk Heesawat (Ph. D.)
Assumption University bp3905@yahoo.com Abstract. This paper gives the readers the background to understand how intangibility of services affects customers’ evaluation of service quality. The paper begins with the various views regarding intangibility of services from scholars. Some view intangibility as important characteristics in distinguishing products from services. Others look at intangibility as insufficient condition to divide products and services. Then, the two main approaches of tangibilization, operation-based and marketing-based tangibilization are examined. The opportunities and problems in tangibilizing services are followed. Next, managerial implications tell marketing practitioners how they should exploit the opportunities and minimize the impacts of tangibilization problems. The paper is ended with the future research to give readers the list of unanswered questions in the areas of service tangibilization. 1. Introduction
Among the four characteristics; intangibility, inseparability, variability, and perishability; which differentiate products from services, there is argument that the single most important characteristic is intangibility. Moreover, it has been said that intangibility is the key to determining whether or not an offering is a service or product (Zeithaml and Bitner, 1996).
Indeed, the broad definition of services implies intangibility as a key determinant of whether an offering is a service or not
(Oberoi and Hales, 1990; Zeithaml and Bitner, 1996). This intangibility characteristic has a profound effect on the marketing of services (Lovelock, 1991; Rushton and Carson,
1989). This characteristic, intangibility, has been found in many literatures to be the most likely reason for the other three characteristics; inseparability, variability, and perishability.
However, some scholars have argued that the
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