Sustainable Marketing Chapter 5

What is Service Marketing and How is it Different from Goods?

A:

🤝 Service Marketing = Marketing services and customer experiences.

Example:
💇 A haircut.

📦 Goods = Physical products you can own.

Example:
📱 A smartphone.

🤝 Services = Activities or experiences you use.

Example:
✂ A haircut.

IHIP (Characteristics of Services):

👻 Intangibility = Cannot be touched.

🔄 Heterogeneity = Quality can vary.

🤝 Inseparability = Produced and consumed at the same time.

⏳ Perishability = Cannot be stored.

Memory Tip:

📦 Goods = Own it

🤝 Services = Experience it

👻🔄🤝⏳ = IHIP

Possible MCQ:

Which is a characteristic of services?

a) Ownership

b) Intangibility ✅

c) Storage

d) Durability

What are the 7Ps of service marketing?

A:

Traditional 4Ps:

📦 Product

💰 Price

📍 Place

📢 Promotion

Extra service Ps:

⚙ Process

👥 People

🏢 Physical Evidence

Memory Tip:
4Ps + Process + People + Physical Evidence = 7Ps

Possible MCQ:

Which of the following was added to create the 7Ps?

a) People ✅

b) Profit

c) Politics

d) Power

What are the Access Paradigm, Access-Based Services, Nonownership Consumption, Minimalism, Liquid Consumption, and Sustainable Services?

A:

🎯 All focus on using products without necessarily owning them.

🔑 Access Paradigm = Access instead of ownership.

Example:
🚲 Use a shared bike instead of buying one.

🏢 Access-Based Services = The company owns the product, and customers pay to use it.

Example:
🚗 Zipcar.

📦 Nonownership Consumption = Using products without owning them.

Example:
🎵 Spotify instead of buying CDs.

👕 Minimalism = Own fewer things.

Example:
Keep only what you really need.

🔄 Liquid Consumption = Temporary access instead of ownership.

Example:
🎵 Streaming music instead of buying CDs.

🌱 Sustainable Service = A service that reduces resource use and environmental impact.

Example:
🚲 Bike-sharing.

Memory Tip:

🔑 Access = Use, don't own

🏢 Access-Based = Company owns

📦 Nonownership = User doesn't own

👕 Minimalism = Own less

🔄 Liquid = Temporary use

🌱 Sustainable Service = Better resource use

Possible MCQ:

What do Access-Based Services and Nonownership Consumption have in common?

a) Customers own the product

b) Products are used without ownership ✅

c) Products are manufactured

d) Products are recycled

What is the Sharing Economy and How Does it Relate to Sustainability?

A:

🌍 Sharing Economy = People share access to resources instead of owning them.

Example:
🏠 Airbnb.

Key Characteristics:

👥 P2P (Peer-to-Peer) = People share with other people.

⏳ Temporary Access = Use something for a limited time.

🚗 Underutilized Assets = Use things that would otherwise sit unused.

Example:
🚗 Renting out a parked car.

Related Concepts:

👥 Sharing Economy = Share temporarily.

Example: Airbnb.

🔄 Second-Hand Economy = Ownership changes permanently.

Example: Selling a used phone.

🏢 Access Economy = Company owns, customer uses.

Example: Hertz.

💼 Gig Economy = People are paid to provide services.

Example: Uber Eats.

Sustainability Benefit:

♻ Better use of existing resources can reduce waste and unnecessary ownership.

Example:
🚗 One shared car can serve many people.

Criticism:

⚠ Some "sharing" platforms are mainly businesses focused on profit rather than true sharing.

✅ Sharing economy can also increase consumption.
Example: 🚗 Easier access to cars can lead to more travel.

Example:
🏠 Airbnb can feel more like a hotel business than sharing.

Memory Tip:

👥 Sharing = Share access

🔄 Second-Hand = New owner

🏢 Access = Company owns

💼 Gig = Paid work

Possible MCQ:

Which is a key characteristic of the sharing economy?

a) Permanent ownership

b) Peer-to-peer interaction ✅

c) Manufacturing products

d) Government ownership

What is the difference between CouchSurfing and Airbnb?

A:

🤝 CouchSurfing = People host others mainly for friendship, community, and social interaction.

Example: 🏠 Letting a traveler stay at your home for free.

💰 Airbnb = People host others mainly to earn money.

Example: 🏠 Renting out a room and getting paid.

Possible MCQ:

CouchSurfing users are usually more motivated by:

a) Profit

b) Social interaction ✅

c) Ownership

d) Advertising

What are Shared Mobility Services?

A:

🚲 Shared Mobility = People share transportation instead of owning vehicles.

Examples:

🚲 Bike-sharing

🚗 Car-sharing

🛴 Shared scooters

🚗 Ride-sharing = Driver was already going that way and shares empty seats.

Example:
🚗 BlaBlaCar.

🚕 Ride-hailing = Driver gives rides to earn money.

Example:
🚕 Uber.

Car-sharing = Use a car when needed without owning it.

Example:
🚗 Zipcar.

Types of Car-sharing:

🔄 Return = Return car to same place.

➡ One-way = Return car somewhere else.

📍 Free-floating = Pick up and leave cars around the city.

👥 P2P Rental = Rent another person's car.

Keyless Technology:

📱 Unlock and use the car with a smartphone instead of a physical key.

Memory Tip:

🚗 Ride-sharing = Share a trip

🚕 Ride-hailing = Pay for a trip

🚗 Car-sharing = Use, don't own

📱 Keyless = Phone instead of key

Possible MCQ:

Which is an example of ride-sharing?

a) Uber

b) Lyft

c) BlaBlaCar ✅

d) UberX

What is a Sustainable Service Ecosystem?

A:

🌱 A sustainable service ecosystem is when different people and organizations work together to create sustainable value.

Examples:

🏢 Companies

👥 Customers

🏙 Communities

🌍 Society and the environment

Example:

🚲 A bike-sharing service where the company provides bikes, people use them, and the city gets less traffic and pollution.

Memory Tip:

🤝 Everyone works together for sustainability.

Possible MCQ:

A sustainable service ecosystem focuses on:

a) One company only

b) Different actors working together for sustainability ✅

c) Manufacturing products only

d) Increasing ownership