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Services Marketing & Green Marketing
5.1 Characteristics of Services (2021 PYQ asked "four characteristics of services")
Services have four inherent characteristics differentiating them from products — the IHIP model:
| Characteristic | Meaning | Marketing Implication |
|---|---|---|
| Intangibility | Cannot be seen, touched, or stored before purchase | Emphasise physical evidence (décor, certificates, uniforms); testimonials |
| Heterogeneity (Variability) | Quality varies by provider, time, and customer | Standardise processes; train staff; service blueprinting |
| Inseparability | Production and consumption occur simultaneously | Select and train front-line staff carefully |
| Perishability | Cannot be stored; unused capacity is lost | Yield management (airline/hotel dynamic pricing); off-peak promotions |
Service quality (SERVQUAL model, Parasuraman, Zeithaml & Berry, 1988): Measures gap between expected and perceived service on 5 dimensions: Reliability, Assurance, Tangibles, Empathy, Responsiveness (RATER).
5.2 The 7P Extended Mix for Services
Booms and Bitner (1981) added 3Ps to McCarthy's 4P mix for services:
- People: Every person who plays a role in service delivery — front-office staff, contact personnel. In India, bank tellers, hotel staff, call centre agents are critical service people.
- Process: Flow of activities and mechanisms through which service is delivered. E.g., McDonald's standardised process (HACCP, assembly-line kitchen) delivers consistent quality across 600+ Indian outlets.
- Physical Evidence: Tangible cues that help customers evaluate service quality. E.g., Starbucks' store ambience, Taj Hotel's décor, hospital cleanliness — all are marketing signals.
5.3 Green/Sustainable Marketing
Green marketing promotes products/services based on environmental credentials. Key concepts:
- Eco-labelling: India's Bureau of Energy Efficiency (BEE) Star Rating for appliances; Forest Stewardship Council (FSC) certification for wood products
- Carbon neutral claims: Products offsetting their carbon footprint. India's Carbon Credit Trading Scheme (CCTS) launched under Energy Conservation (Amendment) Act 2022 provides a formal market.
- Greenwashing: Misleading claims about environmental benefits. ASCI (Advertising Standards Council of India) issued guidelines against greenwashing in 2023.