Three elements of service purchase decision are:
a) Service quality: This refers to the overall quality of the service being provided, including factors such as reliability, responsiveness, assurance, empathy, and tangibles. Customers are likely to evaluate service quality based on their own expectations and perceptions.
b) Price: This refers to the cost of the service, including any additional fees or charges. Customers are likely to compare prices with the perceived value of the service to determine if it is worth the cost.
c) Convenience: This refers to the ease and accessibility of the service, including factors such as location, hours of operation, and availability. Customers are likely to consider the convenience of the service when making a purchase decision.
The main difference between a service and a product is that a service is intangible, while a product is tangible. A service is an activity or benefit provided by one party to another, such as a hair salon providing a haircut or a restaurant serving a meal. A product, on the other hand, is a physical object that can be purchased and owned, such as a smartphone or a pair of shoes. One example of a service is a consulting firm providing advice to a client, while an example of a product is a car manufacturer producing automobiles.
Competitive service strategies can be summarized in terms of differentiation, cost leadership, and focus. Differentiation involves offering unique and superior services to customers, such as personalized attention or specialized expertise. Cost leadership involves offering services at a lower cost than competitors, while maintaining a reasonable level of quality. Focus involves targeting a specific market segment or niche and tailoring services to meet their specific needs and preferences. By adopting one or more of these strategies, service providers can gain a competitive advantage and attract and retain customers.