1.

Intangible Tangible

Fig 1.1: Scale of Market Entities

Scale of marketing entities
The scale that displays a range of products along a continuum based on their tangibility. Pure go Tangibleods are tangible dominant, where as pure services are intangible dominant. Businesses which contain both good and service contain, fall in the middle of the continuum. Another way of looking at the difference between goods and services is provided by the scale of marketing entities.

Tangible dominant
Product that possess a physical properties that can be felt, tasted, and seen prior to the consumer’s purchase decision.
Intangible dominant
Products that lacks the physical properties that can be sensed by consumers prior to the purchase decision.

The scale of marketing entities presented in figure 1.1 displays a range of products based on their tangibility. Rice (Example: BD rice) has the highest tangible aspect as we can feel, taste and can seen prior to the buying therefore we have selected it as the most tangible good in the scale of marketing entities model. Accordingly based on the tangibility aspect we have selected mineral water (Mum), shampoo (Meril), and computer (Apple), jewelry (Venus) as an example of tangible product or Manufactured good. We have put hotels (Radison) in the middle of the model as it includes both tangible and intangible aspect which has to give equal importance. Services are intangible dominant and can not be sense, felt or taste before the purchase. We have selected the service of doctors as the highest intangible product as consumers only can exercise the service of doctors. Service of doctors is being produced when the service is needed. The service of the doctors fluctuate time to time as it is perishable. Accordingly we have selected training center (Future leaders) ship cruise (Star cruise), brokerage house (Dhaka stock exchange), call center (Health line), hospital (Lab-aid) as the intangible dominant product which lacks physical aspects.

2. [pic]

Fig 1.2: The Molecular Model

The molecular model:
The conceptual model of the relationship between tangible and intangible components of a firms operation. Another method to understand the difference between goods and services. The molecular model reinforces our understanding that virtually all products have both tangible and intangible elements. It is a management tool that an offers the opportunity to visualize a firm’s entire market entity. With tangible dominant product, good knowledge is obtained by focusing on the physical aspects of the product. In contrast, consumers evaluate intangible dominant products based on the experience that surrounds the core benefit of the product.
The figure 1.2 provides an example of such entity which has both the tangible and intangible aspects.
Restaurant has both the tangible and intangible aspect as the food & drink, menu chart table & chair are the tangible part of the restaurant whereas taste, environment. Services are the intangible part of the restaurant. For a restaurant both the aspect is important. Food quality is not alone sufficient for the restaurant if it lacking other factors.

3.
[pic]

Figure 1.3: The Servuction Model

Servuction model:

The servuction model is constructed of two parts that which is visible to the consumer and that which is not visible to the consumer. The visible parts of the servuction model consists three parts: the inanimate environment, service providers and other customers. The invisible component of the model consists of the invisible organization systems.

Inanimate environment mean all the nonliving features that are present during the service encounter. The tangible aspects of a service influence the decision. In the absence of a tangible product, consumers look for tangible cues that surrounds the service on which to base their service performance evaluation as it is difficult to evaluate service. For example, physical appearances, visibility, neatness, equipments etc.
Service provider mean the primary providers of a core service, such as d dentist, college instructor.
Contact personnel mean the employees other than the primary service provider who briefly interact with the customer.
Other customer: To complete the visible portion of the servuction model, need to introduce customer A and customer B.

Customer A is the recipient of the bundle of benefits that is created through the service experience.
Customer B is the other customer who are part of customer A’s experience.

We choose hospital (Lab-aid) to describe survuction model. The positive aspects of this hospital are their high technological equipment, their satisfactory service, well trained administration & nurses and highly qualified doctors. All these factors affect customers decision .The negative aspects are Bad experience of other customers, poor car facilities, medicine is being priced high, lacking of promptness at the emergency, ambulance facilities are not sufficient. These entire factors negatively affect customer’s decision if they experience poor and unsatisfactory consequences when they go for service or before going for the service. Word-of-mouth may affect the image both negatively or positively.

Impact on other customer:
As hospital service sector are crucial and difficult to control due to uncertainty. If any unsatisfactory consequences is heard or experience than it will definitely affect the perspective customer of lab-aid hospital both negatively and positively.
Here the appearance of the doctor and nurses and environment of the hospital are invisible factor because we can not measure the quality of the doctor and nurses and how much they serve to the patient. On the other hand the visible parts are the equipment, dress provided by them, food, medicine etc.

Assignment I

SERVICE MARKETING

Prepared by

Mukta Saha Roy
ID: 2005-1-10-196

Tahajjat Begum
ID: 2005-1-10-155

Section 2

Prepared for

SSM Sadrul Huda

Associate Professor

Date of Submission: 22.07.2008

EAST WEST UNIVERSITY
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Call center

Doctor

Hotel

Water

Computer

Shampoo

Jewelry

Hotel

Training center

Ship cruse

Brokerage house

Rice

Food menu

Environment

Test

Table & chair

Service

Food & drink

Who are the part of customer A’s experience.

Bundle of service benefits received by customer A

Invisible organization and system:

MIS system & administrative system.

Invisible

Visible

Contact personnel / service provider:
(Information desk, administrative office, nurses, doctor)

Inanimate environment: (Visibility, utility, cleanness, equipment, medicine)

Customer A

Customer B