Introduction to Services Marketing

Vocabulary practice flashcards covering fundamental concepts, definitions, sector statistics, characteristics, consumption stages, and the expanded marketing mix in services marketing.

Service (A. Payne Definition)

An activity having an element of intangibility, involving interaction with customers or property in their possession, and not resulting in a transfer of ownership.

Service (Lovelock & Wirtz Definition)

Economic activities offered by one party to another that are time-based performances bringing desired results without purchasers taking ownership of physical elements.

Service (P. Kotler Definition)

An activity or benefit offered by one party to another that is essentially intangible and does not result in the ownership of anything.

Pure Tangible Good

An offer consisting solely of a physical product without any accompanying services, such as soap, sugar, or tea.

Tangible Good with Accompanying Services

A product offer centered around a physical good that is supported by one or more accompanying services, such as a computer.

Service with Accompanying Minor Goods

A service-dominant offering that includes supplementary physical goods or minor supporting services, such as airline travel.

Pure Service

An offering consisting entirely of an intangible service with no accompanying physical products, such as baby-sitting.

Intangibility

A primary characteristic of services stating that they cannot be experienced by physical senses such as sight, taste, touch, or feel prior to purchase.

Inseparability

A characteristic of services wherein they are sold first and then produced and consumed simultaneously.

Heterogeneity

A characteristic of services describing high variability in performance because services are conducted by personnel and vary from one delivery to another.

Perishability

A service characteristic meaning services cannot be saved, stored in inventory, resold, or returned.

Prepurchase Stage

The first phase of service consumption that starts with need arousal and proceeds through information search, alternative evaluation, and the purchase decision.

Search Attributes

Tangible characteristics of a product—such as style, color, texture, smell, and taste—that consumers can evaluate before buying.

Experience Attributes

Product or service features—such as customer service, reliability, and atmosphere—that can only be evaluated during consumption or after purchase.

Credence Attributes

Service characteristics that are difficult or impossible for consumers to evaluate even after purchase and consumption due to a lack of specialized knowledge.

Customers Evaluations of Products Continuum

A framework showing how products range from easy to evaluate (high in search attributes) to difficult to evaluate (high in credence attributes).

Service Encounter Stage

The second stage of service consumption involving direct interactions and contacts between the customer and the service provider.

Postencounter Stage

The final stage of service consumption in which customers evaluate service performance by comparing perceived service against their initial expectations.

Services Marketing Mix

The set of controllable elements an organization utilizes to satisfy customer needs and communicate value to target audiences.

Traditional Marketing Mix (4 Ps)

The foundational marketing framework consisting of Product, Price, Place (distribution), and Promotion (communication).

Expanded Marketing Mix (7 Ps)

An extended strategic marketing framework designed for services, consisting of Product, Place, Promotion, Price, People, Physical Evidence, and Process.

Product (in Services)

A bundle of tangible and intangible elements structured through a service concept to deliver value and satisfy customer needs better than competitors.

Place (in Services)

Strategic decisions regarding physical location, selection of intermediaries, and choices between physical and electronic channels to ensure convenient customer access.

Promotion (in Services)

Communication techniques—including advertising, personal selling, sales promotion, and public relations—used to inform, persuade, and prompt action from customers.

Price (in Services)

The monetary amount assigned to a service, serving as a key indicator of quality due to the intangible nature of services.

People (in Services Marketing)

Service employees whose skills and behavior affect quality perceptions, alongside target customers who must be selected, educated, and managed.

Physical Evidence

Tangible indicators in the service environment—such as facility design, signage, equipment, staff uniforms, and business cards—that reflect service quality.

Process (in Services Marketing)

The flow of activities, operational procedures, and customer involvement steps designed to deliver services consistently and reduce variability.

Philippines GDP Sector Proportions (2025)

The economic sector distribution in the Philippines with Services accounting for $63.8\%$, Industry at $28.3\%$, and Agriculture, Forestry & Fishing at $7.9\%$.