Although there is high diversity in the nature of services, they tend to exhibit five important characteristics. A service is typically:
• Intangible • Inseparable from its producer •Variable in its characteristics • Perishable • Dependent on the involvement of the target audience in its production
After reviewing the characteristics of services and how they differ from tangible products, discuss a service offering from a nonprofit organization. Describe the marketing strategies the organization uses to turn service liabilities into advantages for its target audience.
Sample Answer
You've accurately listed the five core characteristics of services, often remembered by the acronym ** acronym might be SOVIED** (though Intangibility, Inseparability, Variability, and Perishability are the most universally cited). These characteristics fundamentally shape how services are conceived, delivered, and marketed, especially for nonprofit organizations.
Let's explore a service offering from a nonprofit and see how it navigates these characteristics.
Service Offering: Volunteer Income Tax Assistance (VITA) Program
- Organization Type: Nonprofit (often run by organizations like United Way, AARP Foundation, local community action agencies, or colleges, sometimes in partnership with the IRS).
- Service Description: The VITA program provides free tax help to people and families who cannot afford paid help, primarily focusing on low-to-moderate income individuals, elderly, persons with disabilities, and those with limited English proficiency. Trained volunteers help prepare basic federal and state tax returns, often assisting clients in claiming tax credits like the Earned Income Tax Credit (EITC) and Child Tax Credit. This service is typically offered during tax season (roughly January to April) at various community locations like libraries, community centers, and churches.
Applying the Service Characteristics & Marketing Strategies:
Intangible:
- Characteristic: The core benefit – accurate tax preparation, peace of mind, accessing refunds/credits – is intangible. Clients cannot see, touch, or easily evaluate the quality of the preparation process itself beforehand.
- Liability: Potential skepticism about accuracy, reliability, and competence of volunteer preparers compared to paid professionals. Fear of errors or audits.You've accurately listed the five core characteristics of services, often remembered by the acronym ** acronym might be SOVIED** (though Intangibility, Inseparability, Variability, and Perishability are the most universally cited). These characteristics fundamentally shape how services are conceived, delivered, and marketed, especially for nonprofit organizations.