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The Opportunities and Problems in Making Services More Tangible

Presented by Ayush Hingle Harshal Nikose Souvik Mukherjee M.Kazmi

INTRODUCTION
The 4 Is of service marketing INTANGIBILITY INSEPARABILITY INVENTORY INCONSISTANCY Intangibility affects the evaluation of a service.

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It gives rise to all the other Is.

Differentiates a service offering from a product offering.

The goods-service continuum

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The traditional approach is to categorize products and services on the basis of their tangibility/intangibility. Three major categories are identified GOODS SERVICES GOODS AND SERVICES BUNDLE A continuum of goods and services can thus be proposed

Why to tangibalize?

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Tangibalization could assist to unify, or at least to lower, the EDEM difference level.

Why to tangibalize?

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Tangibalization helps Consumers regarding what benefits and value additions are to be expected out of the service. Due to intangibility, consumers form very high and irrelevant expectations from the service which cannot be met by the service providers. Creates a gap between perceived performance and expected performance leading to dissatisfaction. Service providers can correctly assess what the consumers expect out of the service. Can design the process of service delivery accordingly ensuring satisfaction.

Approaches towards tangibalization

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Operation based tangibalization Attempts to tangibalize the service firms operational activities Carried on during the time of service encountered i.e. Service delivery and Service consumption Marketing based tangibalization Helps to narrow the gap between expected and perceived level of service through marketing efforts. Influences and modifies customer expectations, decision analysis and service evaluation. Operation and marketing based tangibalization Attempts to reflect operational tangibalization through marketing efforts.

An example

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Approaches to MBT

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Quantization Represented services with Quantitative cues. Ranking Service providers comparative position. Factualization Services are illustrated by statements, illustrations and representations. Substantialization Presenting a concrete but abstract image of the service. Word of mouth Creation of referral networks propagating the benefits of a service. Information transfer Frequency of advertising Sales presentations and visits made by the sales force. Frequency of provider-client network.

Opportunities

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Adding tangibility eases up evaluation of service quality. Consumers evaluate quality by Tangibility Responsiveness Reliability Assurance Empathy Communication of intangible benefits is a challenging task. Advertising efforts help consumers to form a mental image of the service whose core lacks a physical reality. Helps to reduce the risk perceived by consumers regarding a service Helps consumers in forming correct expectations about a service. Evaluation of SERQUAL becomes more effective.

Opportunities

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Service providers can better assess customer expectations and can design the service delivery effectively.

Discrepancies between expected and perceived performance can be reduced hence increasing profitability.

Problems

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OBT can only satisfy existing customers while neglecting potential customers. It helps to evaluate services that have already been consumed.

Firms need to OBT and MBT both simultaneously to bring about effective tangibalization.

Managerial implications

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Service providers must Specify the service being delivered. Determine precisely where the service lies in the continuum to effectively assess the degree of tangibility and intangibility. Design the service delivery such that it becomes experiancible for the consumer. Understand customers expectations of the level of service. Promote service reliability. Services must be standardized without compromising customization potential. This is an important step to reduce service intangibility. Focus on communicating implicit service promises.

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THANK YOU