Key Terms
PEOPLE-BASED SERVICES
People deliver the service. Value comes from their skills and knowledge.
EQUIPMENT-BASED SERVICES
Machinery or technology does the work.
INTANGIBILITY
Can't be seen, touched, tasted, smelled, or heard before purchase. Creates uncertainty for consumers.
INSEPARABILITY
Services are produced and consumed at the same time. You can't separate the service from the provider.
VARIABILITY
Service quality depends on who provides it, when, where, and how. One employee might be excellent; another mediocre.
PERISHABILITY
Services can't be stored for later. An empty hotel room, an unused airline seat, an unbooked appointment slot — gone for
RELIABILITY
Accurate, dependable, on-time service. Consistency is critical.
ASSURANCE
The degree to which the organization inspires trust. Customers expect expertise.
TANGIBLES
The physical appearance of the facility and employees. Uniforms, cleanliness, decor, equipment condition.
EMPATHY
Attentiveness to the customer as a person — not just completing the task efficiently, but making the customer feel value
RESPONSIVENESS
Promptness and genuine willingness to help. Customers' patience is directly tied to wait times.
Services
Nonphysical, intangible economic activities.
People-based services
People, not equipment, primarily deliver the service.
Equipment-based services
Machinery or technology primarily delivers the service.
People processing
Customer is the direct recipient; production and consumption are simultaneous.