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The first four elements in the services marketing mix are the same as those in the traditional marketing mix. However, given the unique nature of services, the implications of these are slightly different in case of services.
1. Product: In case of services, the ‘product’ is intangible, heterogeneous, and perishable. Moreover, its production and consumption are inseparable. Hence, there is a scope for customizing the offering as per customer requirements and the actual customer encounter, therefore, assumes particular significance. However, too much customization would compromise the standard delivery of the service and adversely affect its quality. Hence particular care has to be taken in designing the service offering.
2. Pricing: Pricing of services is tougher than pricing of goods. While the latter can be priced easily by taking into account the raw material costs, in case of services attendant costs, labor and overhead costs also need to be factored in. Thus, a restaurant not...