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Classifying Services to Gain Strategic Marketing Insights By Christopher H. Lovelock Objective To generate greater sophistication within the realm of service marketing by segmenting services into clusters that share certain relevant marketing characteristics. Previous Work – Classification of Goods Hunt (1976) Emphasized the usefulness of classification schemes in marketing Copeland (1923) Most famous and enduring attempt to classify goods Classification of convenience, shopping, and specialty goods Helped managers to: Better understand consumer needs and behavior Provided insight into the management of retail distribution systems Classification of Goods Cont. Bucklin (1963) Revised and refined Copeland’s original classification Provided important strategic guidelines for retailers Classification of Goods Cont. Other Classification schemes: Durable vs. non-durable goods Durability is relative to purchase frequency and, therefore, is important for the development of distribution and communications strategies Consumer goods vs. industrial goods Relates to types of goods purchased and product evaluation (purchasing procedures and usage behaviors) Previous Work – Classification of Services Shostack (1977), Bateson (1979), Berry (1980) Argued that there are significant distinctions between services and goods and have proposed several generalizations for management practices Enis Roering (1981) Believe that the differences that lie between goods and services have no meaningful strategic implications Langeard et al. (1981) Stated the importance of recognizing that the service sector, escpecially in the US, is becoming increasingly competitive Classification of Services Cont. Judd (1964) - classification in accordance with ownership 1) Rented goods services- right to own and use a good for a defined time 2) Owned goods services- owned by customer (repair or improvement of goods, custom creation) 3) Nongoods services- “experiential possessions” or
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