what are the four characteristics of services

Services have several characteristics that distinguish them from tangible

goods. These characteristics help define the nature of services and
influence how they are consumed and delivered. Here are some of the
key characteristics of services:

1. Intangibility: Services are intangible, meaning they cannot be

touched or physically possessed. They are experiences or
performances rather than physical objects. For example, you can't
touch a haircut or a software update, but you can experience the
effects of these services.
2. Inseparability: Services are often produced and consumed
simultaneously. This means that the production and consumption
of services typically occur in real-time and are inseparable. For
example, when a customer receives a haircut, the service is being
produced and consumed at the same time.
3. Heterogeneity (Variability): Services can vary in quality and
consistency because they are often delivered by people, and
human performance can be inconsistent. For example, the quality
of a restaurant meal or a massage can vary depending on the skills
and effort of the service provider.
4. Perishability: Services are perishable in that they cannot be stored
for future use. They must be consumed at the time of production,
and any unused capacity is lost. For example, an empty seat on an
airplane for a scheduled flight cannot be "saved" for a future flight.
5. Non-ownership: Customers do not own services in the same way
they own tangible goods. Instead, they purchase the right to use or
experience the service for a specific period of time or occurrence.
6. Lack of Transportability: Services cannot be transported or
inventoried like physical products. They are often location-based
and must be provided where the customer is located.
7. Customer Involvement (Participation): In many services, the
customer plays a role in the production process. This is known as
customer co-creation. For example, in a haircut, the customer must
actively participate by providing input to the stylist.
 8. Time-based Performance: Services are often evaluated based on
the time it takes to deliver them and the duration of the customer's
experience. This can be a critical factor in customer satisfaction.
9. Customization and Flexibility: Services can often be customized
to meet the specific needs and preferences of individual
customers. This allows for a higher degree of personalization
compared to standardized tangible products.
10.Quality Perception: The evaluation of service quality can be
subjective and influenced by factors such as customer
expectations, interactions with service personnel, and the overall
experience.

Understanding these characteristics is crucial for businesses in the

service industry as they influence how services are designed, delivered,
and marketed to meet customer expectations and create value.

Services and goods have distinct characteristics that set them apart.
Here's a comparison of these characteristics:

1. Intangibility:
 Goods: Tangible, physical objects that can be seen, touched,
and possessed.
 Services: Intangible, meaning they are experiences or
performances that cannot be touched or possessed.
2. Inseparability:
 Goods: Produced separately from their consumption. They
can be manufactured and stored before being sold.
 Services: Often produced and consumed simultaneously.
Production and consumption occur in real-time and are
inseparable.
3. Heterogeneity (Variability):
 Goods: Generally produced with a high degree of consistency
and quality control in a manufacturing environment.
 Services: Can vary in quality and consistency due to their
reliance on human performance. Different service providers
may deliver different levels of service quality.
4. Perishability:
 Goods: Can be stored for future use without significant
deterioration.
 Services: Must be consumed at the time of production, and
any unused capacity is lost.
5. Non-ownership:
 Goods: Customers own tangible products and can possess
them for an extended period of time.
 Services: Customers purchase the right to use or experience
the service for a specific period or occurrence but do not
own the service itself.
6. Transportability:
 Goods: Can be transported, stored, and inventoried for
distribution to various locations.
 Services: Often location-based and must be provided where
the customer is located. They cannot be easily transported.
7. Customer Involvement (Participation):
 Goods: Customer involvement in the production process is
typically limited to the purchase decision and possibly
assembly.
 Services: In many cases, customers actively participate in the
production process. This is known as customer co-creation,
and it is a significant characteristic of services.
8. Time-based Performance:
 Goods: Evaluation is based on the physical attributes,
features, and functionality of the product.
 Services: Evaluation is often based on the time it takes to
deliver the service and the duration of the customer's
experience.
9. Customization and Flexibility:
 Goods: Generally produced in standardized forms with
limited customization options.
 Services: Can often be customized to meet the specific needs
and preferences of individual customers, allowing for a
higher degree of personalization.
10.Quality Perception:
  Goods: Quality is often evaluated based on objective criteria
such as durability, material, and workmanship.
 Services: Quality perception can be subjective and influenced
by factors like customer expectations, interactions with
service personnel, and overall experience.

Understanding these differences is essential for businesses to effectively

design, market, and deliver either goods or services. It also helps in
developing strategies to meet customer expectations and create value in
different industry sectors.

Expanded Mix Of service marketing

The expanded marketing mix for services, also known as the 7Ps, builds
upon the traditional 4Ps (Product, Price, Place, and Promotion) and
includes three additional elements specifically relevant to services. These
additional elements are Process, People, and Physical Evidence. Let's
break down the expanded mix of service marketing:

1. Product (Service Offering):

 In services, this refers to the core service being offered to
customers. It includes the features, benefits, and solutions
provided to meet the customer's needs. For example, in a
hotel, the core service is providing accommodation.
2. Price:
 Pricing strategies for services involve determining the value
of the service and establishing a pricing structure that is fair
to both the provider and the customer. It can be based on
factors like cost, value, competition, and customer
perception.
3. Place (Distribution):
 In services, this relates to the location and channels through
which the service is delivered to customers. It includes
considerations like physical location, online presence,
accessibility, and distribution channels.
4. Promotion:
 This involves the communication strategies used to promote
and advertise the service. It includes advertising, public
 relations, digital marketing, content marketing, and other
promotional activities.
5. Process:
 This refers to the procedures, systems, and methods used in
delivering the service. It encompasses everything from how
the service is designed and produced to how it's delivered
and consumed by the customer. An efficient and effective
process is crucial for delivering high-quality services.
6. People:
 In services, the people element is about the individuals who
deliver the service as well as their interaction with customers.
This includes frontline employees, customer service
representatives, and any other personnel involved in service
delivery. The skills, attitude, and behavior of these individuals
can significantly impact the customer's perception of the
service.
7. Physical Evidence:
 Unlike goods, services are intangible, which makes it
challenging for customers to evaluate them before
consumption. Physical evidence provides tangible cues that
help customers assess the quality of the service. This can
include the physical environment, equipment, brochures,
website design, and any other tangible elements associated
with the service.
8. Partnership (in some models):
 In some versions of the extended marketing mix, a new "P" is
added to represent partnership. This refers to collaborations
or alliances between the service provider and other entities
that can enhance the delivery or quality of the service.

By considering all these elements together, service providers can

develop comprehensive marketing strategies that address the unique
characteristics and challenges of services. This holistic approach helps in
creating and delivering value to customers effectively.

Service quality dimensions

Service quality can be assessed using various dimensions or criteria that
help measure and evaluate the performance of a service provider. One
commonly used framework for understanding service quality is the
SERVQUAL model, which identifies five dimensions. These dimensions
are often referred to using the acronym RATER:

1. Reliability:
 Reliability refers to the ability of the service provider to
perform the promised service consistently and accurately. It
involves delivering the service in a dependable and error-free
manner. Customers expect the service to be delivered as
promised, without any unexpected glitches or delays.
2. Assurance:
 Assurance relates to the knowledge, competence, and
courtesy of the service providers. It involves instilling trust
and confidence in customers by demonstrating expertise,
professionalism, and a willingness to help. Assurance also
includes factors like the credibility of the service provider and
their ability to convey trust and confidence to customers.
3. Tangibles:
 Tangibles refer to the physical or tangible aspects associated
with the service. These include the physical facilities,
equipment, appearance of personnel, and any other tangible
elements that customers can observe. It is about creating a
positive visual impression that reassures customers about the
quality of the service.
4. Empathy:
 Empathy involves understanding and showing care for
customers' needs and concerns. It means being attentive to
customers, listening to their feedback, and showing a
genuine interest in their well-being. Service providers need
to be able to understand and connect with their customers
on an emotional level.
5. Responsiveness:
 Responsiveness is about the willingness and readiness of the
service provider to help customers promptly. It involves
being attentive to customer inquiries, providing timely
 responses, and being proactive in addressing customer
needs. Customers value quick and efficient service, especially
when they have urgent requests.

These five dimensions collectively provide a framework for evaluating

and improving service quality. It's important to note that the relative
importance of these dimensions may vary depending on the specific
industry, customer expectations, and cultural factors. Therefore,
understanding customer preferences and tailoring service delivery to
meet those preferences is crucial for achieving high levels of service
quality and customer satisfaction

Service blueprint

A service blueprint is a visual representation or diagram that outlines the

process of delivering a service from start to finish. It provides a detailed
overview of the various components, interactions, and touchpoints
involved in delivering a service, helping organizations to understand and
manage the service delivery process more effectively.

A typical service blueprint consists of several key elements:

1. Customer Actions:
 This is the topmost layer of the blueprint and represents the
actions taken by the customer during their interaction with
the service. It outlines what the customer does, such as
making inquiries, providing information, or receiving the
service.
2. Frontstage:
 The frontstage consists of all the customer-visible activities
and interactions that take place during the service delivery
process. This includes interactions with service personnel,
physical touchpoints (like websites or mobile apps), and any
other customer-facing elements.
3. Backstage:
 The backstage represents the activities and processes that
occur behind the scenes, away from the view of the
customer. It includes tasks performed by employees,
 technology systems, and any other resources involved in
delivering the service.
4. Support Processes:
 These are the internal processes and activities that support
the frontline employees in delivering the service. They may
include training, scheduling, maintenance, and other
activities that enable the service to be delivered effectively.
5. Physical Evidence:
 This element represents the tangible elements that
customers can see or experience during their interaction with
the service. It includes things like brochures, signage,
equipment, and other physical cues that contribute to the
overall service experience.
6. Customer Touchpoints:
 These are specific points of interaction between the customer
and the service provider. They can be physical (e.g., a retail
store), virtual (e.g., a website), or even human (e.g., a
customer service representative).
7. Customer Interaction Points:
 These are moments of contact or interaction between the
customer and the service provider. They can be in the form
of face-to-face interactions, phone calls, emails, chat
messages, etc.
8. Service Blueprint Key:
 This section provides additional information about symbols,
colors, or annotations used in the blueprint to represent
different elements or activities.

Service blueprints are valuable tools for organizations because they allow
for a comprehensive understanding of the service delivery process. They
help identify potential bottlenecks, areas for improvement, and
opportunities for innovation. By mapping out the entire service journey,
organizations can better design, manage, and optimize their services to
meet customer expectations and deliver high-quality experiences.

What is GAP’s Model in Serivce design and Delivery

The GAPs model is a framework used in service marketing and
management to identify and address the gaps that can occur in the
delivery of a service. These gaps represent discrepancies between
customer expectations and the actual service provided. The model helps
service providers understand and improve the quality of their services.
There are five main gaps identified in the model:

1. Gap 1: Customer Expectations vs. Management Perceptions:

 This gap occurs when there is a lack of understanding or
awareness regarding what customers actually expect from
the service. It arises from a failure to accurately identify or
define customer needs and preferences. To address this gap,
organizations need to conduct market research, gather
customer feedback, and ensure that management has a clear
understanding of customer expectations.
2. Gap 2: Management Perceptions vs. Service Quality
Specifications:
 Gap 2 is the discrepancy between what management
believes customers want and the actual translation of those
beliefs into specific service quality standards. It involves
setting the right service quality targets and performance
standards. To close this gap, organizations must ensure that
management's perceptions are effectively translated into
concrete service quality specifications.
3. Gap 3: Service Quality Specifications vs. Service Delivery:
 This gap relates to the execution of the service and involves a
mismatch between what was specified and what is actually
delivered. It may occur due to issues like inadequate training,
resource constraints, or operational inefficiencies. To address
Gap 3, organizations need to ensure that employees have the
necessary tools, training, and support to deliver the service as
per the defined specifications.
4. Gap 4: Service Delivery vs. External Communication:
 Gap 4 arises when there is a discrepancy between the actual
service delivery and the promises or communications made
to customers through marketing and advertising efforts. It's
essential that organizations set accurate expectations in their
 marketing materials to align with what can realistically be
delivered. This requires transparency and clarity in external
communications.
5. Gap 5: Customer Perceptions vs. Customer Expectations:
 Gap 5 represents the difference between what customers
expect to receive and their actual perception of the service
they receive. It is influenced by the customer's prior
experiences, word-of-mouth, and other factors.
Organizations need to work on meeting or exceeding
customer expectations to minimize this gap.

Closing these gaps requires a coordinated effort across different

departments and levels of an organization. It involves improving
communication, setting realistic service quality standards, providing
adequate training and resources, and actively seeking and incorporating
customer feedback.

By using the GAPs model, organizations can identify specific areas where
improvements are needed and implement strategies to enhance the
overall quality of their services. This, in turn, leads to higher levels of
customer satisfaction and loyalty.

Suggest to be taken to bridge or reduce the GAP

To bridge or reduce the gaps identified in the GAPs model, organizations

can implement a range of strategies and actions. Here are some
suggestions for addressing each of the five gaps:

1. Gap 1: Customer Expectations vs. Management Perceptions:

 Conduct Market Research: Regularly gather customer
feedback, conduct surveys, and engage in market research to
understand customer preferences and expectations.
 Customer Advisory Boards: Establish customer advisory
boards or focus groups to directly involve customers in
providing input on service expectations.
 Training and Workshops: Provide training and workshops
for management and employees to enhance their
understanding of customer needs and expectations.
  Use of Technology: Utilize customer relationship
management (CRM) systems and analytics tools to track and
analyze customer behavior and preferences.
2. Gap 2: Management Perceptions vs. Service Quality
Specifications:
 Clear Communication: Ensure that there is clear
communication between management and frontline
employees to accurately translate management's vision into
specific service quality standards.
 Standard Operating Procedures: Develop detailed standard
operating procedures (SOPs) that clearly outline the
expected service quality standards.
 Feedback Loops: Establish feedback mechanisms to allow
employees to provide input on the feasibility and
effectiveness of specified service quality standards.
 Regular Review and Updates: Regularly review and update
service quality standards to align them with evolving
customer expectations and industry best practices.
3. Gap 3: Service Quality Specifications vs. Service Delivery:
 Training and Development: Invest in comprehensive
training and development programs for employees to ensure
they have the necessary skills and knowledge to deliver the
service as specified.
 Resource Allocation: Provide the necessary resources,
equipment, and tools to enable employees to effectively
carry out their duties.
 Performance Monitoring: Implement performance metrics
and monitoring systems to track adherence to service quality
specifications and provide feedback to employees.
 Continuous Improvement: Foster a culture of continuous
improvement, where employees are encouraged to identify
and address any challenges in service delivery.
4. Gap 4: Service Delivery vs. External Communication:
 Transparent Marketing: Ensure that marketing messages
accurately reflect the actual service that will be provided,
avoiding over-promising and under-delivering.
  Customer Testimonials and Reviews: Use customer
testimonials and reviews to provide authentic evidence of the
quality of the service.
 Consistent Branding: Maintain consistent branding and
messaging across all customer touchpoints to build trust and
credibility.
5. Gap 5: Customer Perceptions vs. Customer Expectations:
 Manage Expectations: Set clear expectations with
customers regarding what they can expect from the service,
and strive to meet or exceed those expectations.
 Seek Customer Feedback: Actively seek and listen to
customer feedback to understand their perceptions and
areas where improvements can be made.
 Service Recovery: Implement effective service recovery
strategies to address any instances where customer
perceptions fall below their expectations.
 Measure Customer Satisfaction: Use customer satisfaction
surveys and Net Promoter Scores (NPS) to gauge how well
the service is meeting customer expectations.

By implementing these strategies, organizations can work to bridge the

gaps and improve the quality of their services, ultimately enhancing
customer satisfaction and loyalty.

Visual merchandising is

Visual merchandising is a retail strategy that focuses on the visual

presentation of a store to attract customers, create a positive shopping
experience, and drive sales. It involves the use of various design and
display techniques to enhance the aesthetics of the store and effectively
showcase products. The goal is to capture the attention of customers,
communicate the brand's identity, and encourage them to make
purchases. Visual merchandising encompasses elements such as window
displays, interior layout, lighting, signage, and product presentation.

Example of Visual Merchandising: Apple Retail Stores

Apple is known for its iconic and highly effective visual merchandising
strategies. Let's look at some key elements:

1. Store Layout and Design:

 Apple stores are designed with a clean, modern, and
minimalist aesthetic. The open layout encourages customers
to explore and interact with products freely.
 The use of glass walls and tables creates a sense of
transparency, allowing customers to see and touch the
products.
2. Window Displays:
 Apple's window displays are simple yet impactful. They often
feature the latest products with minimalistic backgrounds,
focusing on a single product or a few key items.
 These displays change regularly to showcase new releases
and highlight key features.
3. Product Presentation:
 Products are arranged in a way that invites customers to
interact with them. For example, iPhones, iPads, and
MacBooks are set up on tables with clear signage and
information about each product.
 Display devices are often connected to the internet, allowing
customers to experience the products in action.
4. Lighting:
 Apple stores use a combination of natural and artificial
lighting to create a bright and inviting atmosphere.
Spotlights are strategically placed to highlight products and
draw attention to key areas.
5. Branding:
 The Apple logo and branding are consistent throughout the
store, reinforcing the brand identity. The use of simple, sleek
materials and a predominantly white color scheme
contributes to a cohesive brand image.
6. Interactive Displays:
 Apple incorporates interactive displays and demo units.
Customers are encouraged to try out products, test features,
and experience the functionality firsthand.
 7. Seasonal Themes:
 Apple adapts its visual merchandising to reflect seasonal
themes and promotions. For example, during product
launches or holidays, the store's displays and signage may be
updated to align with the occasion.

The success of Apple's visual merchandising lies in its ability to create a

visually appealing and immersive environment that aligns with the
brand's image. The focus on simplicity, interactivity, and a consistent
brand message contributes to a positive customer experience and
encourages engagement with the products.

economic indicators are responsible for GDP

Gross Domestic Product (GDP) is a comprehensive measure of a
country's economic performance and represents the total value of all
goods and services produced within its borders over a specific time
period. Economic indicators are crucial in calculating and understanding
GDP. Here are some key economic indicators that play a role in
determining GDP:

1. Consumption (C):
 Household Spending: Consumer spending is a significant
component of GDP. It includes expenditures on goods and
services such as food, clothing, housing, and healthcare.
2. Investment (I):
 Business Investment: This includes spending by businesses
on capital goods such as machinery, equipment, and
facilities. Business investment contributes to the expansion
and improvement of production capacity.
3. Government Spending (G):
 Government Expenditures: Spending by the government
on goods and services, including infrastructure projects,
education, and defense, contributes to GDP. It represents the
portion of economic activity directly initiated by the
government.
4. Net Exports (Exports - Imports):
  Trade Balance: The difference between a country's exports
and imports is known as the trade balance. Positive net
exports contribute to GDP, while negative net exports
subtract from it.
5. Income (Y):
 National Income: The total income earned by individuals
and businesses within a country, including wages, profits, and
taxes minus subsidies, is a factor in calculating GDP.
6. Employment and Labor Productivity:
 Employment Levels: The number of people employed in an
economy is a significant factor. Higher employment levels
often correlate with increased consumption and,
consequently, a higher GDP.
 Labor Productivity: The efficiency of workers in producing
goods and services affects GDP. Higher labor productivity
can lead to increased output.
7. Interest Rates:
 Cost of Borrowing: Interest rates influence the cost of
borrowing for businesses and consumers. Lower interest
rates may stimulate investment and consumption, positively
impacting GDP.
8. Inflation Rates:
 Purchasing Power: Inflation, the rate at which the general
level of prices for goods and services rises, affects purchasing
power. Moderate inflation can support economic growth,
while high inflation may erode purchasing power and
negatively impact GDP.
9. Housing Market Indicators:
 Residential Investment: Investment in housing, including
construction and real estate activities, is a component of
GDP. It reflects the health of the housing market and can
influence economic growth.
10.Business and Consumer Confidence:
 Spending and Investment: High levels of confidence among
businesses and consumers can lead to increased spending
and investment, contributing to economic growth and GDP.
Economic indicators provide insights into the various components of
GDP and help policymakers, businesses, and analysts understand the
overall health and direction of an economy. Analyzing these indicators
collectively aids in predicting economic trends and making informed
decisions