TANGIBILIZING THE INTANGIBLE

TANGIBILIZING THE INTANGIBLEAMRITA CHOWDHURYAVIK PAUL

SERVICES•Any act of performance that one partly can offer another that is essentially intangible and does not result in the ownership of anything;

•Its production may or may not be tied to a physical product.

SERVICE MIX•Pure tangible goods

•Good accompanying services

•Hybrid

•Service accompanying goods •Pure service

Characteristics of servicesIntangibility Cant see/touch/feel Inseparability

Production/distribution /

consumption simultaneous

Heterogeneity Perishabilityvariation in quality/ time Cant be storedconsumed/extent of service

Therefore, challenges…

.. Tangibilize the intangible

.. Increase productivity of providers who are inseparable from products

.. Standardize the quality

.. Optimize demand movement & supply capacity

•InventoryServices

Intangibility

Inseparability

Inconsistency

SERVICE CHARACTERISTICS-INTANGIBILITY

•“Manage the evidence” and “tangibilize the intangible”

•Create physical image of service offer and add physical evidence.

IntangibilityMarketing

Implications - No patent - No ready display - Communications problem - Pricing difficulty

Strategies

-Tangible clues- place / people / equipment / symbols- Personal sources - Word of mouth- Image / branding

TANGIBILIZATION AND EVIDENCE CHECKLIST

•Place•People•Equipment•Communication material•Symbol•Price

TANGIBILIZING THE INTANGIBLE•Visualization•Association•Physical Representation•Documentation•People Involvement•Promotion•Branding

PROBLEMS OF INTANGIBILITY•Abstractness-

E.g.- abstract concepts such as financial security, expert advice or safe transportation.

•Generality-E.g.- airline seats, flight attendants, cabin service.

•Nonsearchability-E.g.- physical attributes, such as the appearance of a health club and equipment installed, can be checked in advance but the not the experience of working with a trainer

TANGIBILIZING THE INTANGIBLESVISUALIZATIONHotels depicting benefits of dinning at restaurant through advertisement.

TANGIBILIZING THE INTANGIBLEASSOCIATION

Abhishek Bachan with Idea Shah Rukh Khan with Airtel

TANGIBILIZING THE INTANGIBLEPHYSICAL REPRESENTATION

Citibank credit card in gold or Platinum symbolizes a status.

Airline dress symbolizes visibility,reliability and cleaniness.

TANGIBILIZING THE INTANGIBLEDOCUMENTATIONCiting facts and figures in support of performance.

100% placementNo. 1 rank in India Major Awards Won By Jet Air

% Of People Preferring Jet Air

TANGIBILIZING THE INTANGIBLEPEOPLE INVOLVEMENTPeople are often critical element in service delivery

TANGIBILIZING THE INTANGIBLEPROMOTIONPersonal care through promotion campaigns/communication material offers life long assurance scheme.

Aviva- “Kal par control”HDFC- “Sir utha ke jiyo” Brochures

TANGIBILIZING THE INTANGIBLEBRANDINGBranding helps in differentiation of the service from competitors.

THANK YOU