Deon Duncan
ADM 306
Midterm Essay Questions
1.) What is a service?
A pure service would contain no tangible elements (however, services contain at least some
tangible element)
Goods: objects, devices or things
Services: deeds, efforts or performances
Product: both goods and services
Primary difference between goods and services: the property of intangibility.
4.) Discuss the marketing challenges associated with intangibility and the possible solutions to
address these issues.
The marketing problems that arise include:
• it is difficult to easily display or communicate the properties of services to consumers
• prices are difficult to set
• services are not patentable, thus they are easily copied by competitors
• services cannot be stored for future use
Solutions suggested to minimize the problems associated with intangibility include:
• utilizing tangible clues to influence customer perceptions of service delivery
• developing promotional plans that emphasize personal sources of information
• developing the organization’s image to reduce customer levels of perceived risk