ge der My CHAPTER 3 Fundamental Differences Between Goods and Services CHAPTER OBJECTIVES This chapter discusses the base di erences between goods and nice the marketing problems that are due to these differences and possible solutions to the problems created by the difference THE BED WARS AND PILLOW SKIRMISHES The intangbility of the core service benefit often makes it difficult for customers to objectively evaluate the quality of service and/or compare service alternatives. As a result, customers rely on the physical evidence that surrounds the core benefit to assist informing service evaluation. Hence, the effective management of physical evidence by service firms is key to establishing service differentiation Service differentiation through the purposeful use of physical evidence has been long semplified by the lodging industry through the effective management of facility exterior facility interior, and other tangibles asociated with the hotel experience. Interestingly, the latest battleground in physical differentiation become the bed with the introduction of the "Heavenly Bed in 1999, Westin Hotels whered in a new movement in the hotel industry to move way from the institutional feel of some rooms and give guests more hours accommodation Westin was on a quest to build the best bed in the industry. The ed result was a custom-made Simmons attress decked out with down blankets sheets with high thread counts, a comforter, a duvet and five pillows-enough to make other hotel beds feel like rock slabs. At first rivals scoiled at Westin's new bedding strategy. First, the 530 million price tag seemed a bit extravagant and second the lines were white-what was Westin thinking? However, opinions changed quickly as Westin and the Heavenly Bed racked up multiple bu mwards induding improved guest satisfaction higher room rates better en perilable room and an walanche of publicity. In addition, CHAPTER 3 "It is wrong to imply that services are just like goods except for Intangibility. By such logie, apples are just like oranges, except for their appleness. G. Shack Fundamental Differences Between Goods and Services CHAPTER OBJECTIVES After reading this chapter, you should be This chapter discusses the basic dif ferences between goods and services, the marketing problems that arise due to these differences, and possible solutions to the problems created by these differences | Understand the characteristics of intangibility, Inseparability heterogeneity, and perisability Discuss the marating challenge associated with Intangibility and the patte aatitlems Describe the marketing challenges created by nerability and their posible solution Explain the marketing challenge reciated with heterogeneity and the posible solutions Identify the marketing challenges created by perisability and their posible THE BED WARS AND PILLOW SKIRMISHES The intangibility of the core service benefit often makes it difficult for customers to objectively evaluate the quality of service and/or compare service alternatives. As a result, customers rely on the physical evidence that surrounds the core benefit to assist in forming service evaluations. Hence, the effective management of physical evidence by service firms is key to establishing service differentiation, Service differentiation through the purposeful use of physical evidence has been long exemplified by the lodging industry through the effective management of facility exterior, facility interior, and other tangibles associated with the hotel experience. Interestingly, the latest battleground in physical differentiation has become the bed itself. With the introduction of the "Heavenly Bed in 1999, Westin Hotels ushered in a new movement in the hotel industry to "move away from the institutional feel of some rooms and give guests more luxurious accommodations." Westin was on a quest to build the best bed in the industry. The end result was a custom-made Simmons mattress decked out with down blankets, sheets with high thread counts, a comforter, a duvet and five pillows- enough to make other hotel beds feel like rock slabs." At first, rivals scoffed at Westin's new bedding strategy. First, the $30 million price tag seemed a bit extravagant and second the linens were white-"what was Westin thinking?" However, opinions changed quickly as Westin and the Heavenly Bed racked up multiple business rewards including "improved guest satisfaction, higher room rates, better revenue-per-available-room and an avalanche of publicity. In addition, Consider the impact of tangibility ) incility heterogeneity, and perisability marketing relationship to other functions within the serviceorganisation Appreciate the organization of the remainder of this 1- read the case study and provide a summary 2- identify the kind of service that is provided 3- how they have differentiated their services 4- according to this case study; identify a fundamental difference between goods and services