Page 345 - Foundations of Marketing

312 Part 4 | Product and Price Decisions

because practically all marketers of goods also provide customer services. Intangible,
service- dominant products such as education and health care are clearly service products.
Of course, some products, such as a restaurant meal or a hotel stay, have both tangible and
intangible dimensions.

Inseparability of Production and Consumption
Another important characteristic of services that creates challenges for marketers is
inseparability , which refers to the fact that the production of a service cannot be separated
from its consumption by customers. For instance, an airline flight is produced and consumed
simultaneously—that is, services are produced, sold, and consumed at the same time. In goods
marketing, a customer can purchase a good, take it home, and store it until ready for use. The
manufacturer of the good may never see an actual customer. Customers, however, often must
be present at the production of a service (such as investment consulting or surgery) and cannot
take the service home. Indeed, both the service provider and the customer must work together
to provide and receive the service’s full value. Because of inseparability, customers not only
want a specific type of service but expect it to be provided in a specific way by a specific
individual. For example, the production and consumption of a medical exam occur simulta-
neously, and the patient knows in advance who the physician is and generally understands
how the exam will be conducted. Inseparability implies a shared responsibility between the
customer and service provider. Training programs for employees in the service sector should
stress the importance of the customer in the service experience so that employees understand
that the shared responsibility exists.

Perishability

inseparability Being produced Services are characterized by perishability because the unused service capacity of one time
and consumed at the same time period cannot be stored for future use. For example, empty seats on an air flight today cannot
perishability The inability of be stored and sold to passengers at a later date. Other examples of service perishability include
unused service capacity to be unsold basketball tickets, unscheduled dentists’ appointment times, and empty hotel rooms.
stored for future use Although some goods, such as meat, milk, and produce, are perishable, goods generally are

Inseparability and
Perishability of Services
Because sporting events
cannot be separated from
consumption, empty seats
represent lost revenue that
cannot be recovered. For this © iStockphoto.com/gioadventures
reason, sports marketers often
offer incentives to fill empty
seats even if it means lowering
the price.

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