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http://go.galegroup.com/ps/anonymous?id=GALE%7CA19294301
Title: Comparing intensity and effectiveness of marketing communications: services versus non-services
Author(s): J. Duncan Herrington, James G. Lollar, Michael J. Cotter, and James A. Henley, Jr. .
Source: Journal of Advertising Research.
Much of the literature regarding the advertising of services implies that services are more difficult to communicate than non-services. Assuming that this is true, is it reasonable to expect that services communications will be comparatively less effective at generating sales? To address this question, this study compares the intensity and effectiveness of total marketing communications among service and non-service firms serving consumer and industrial customers. Additional comparisons were made using advertising alone. The results suggest that, contrary to expectations, services communications appear to be no less effective at generating sales than non-services communications. In fact, the impact of marketing communications is higher for consumer service firms than for consumer non-service firms - at least in the short run. In light of these findings, several general implications for both researchers and services marketers are discussed.
Marketing communications (MC)
S1原来认为service公司难做marketing,因为都是无形产品,所以service公司花在MC上的钱比nonservice少。作者提出质疑
S2 MC中一个重点是看长期还是短期。 A设计实验在customer market 和industry market比较。Customer market中service回报>non service; 但是在industry market中回报差不多; 长期也差不多(本段出了道题目:可以推断出A的试验方法如何,我选了consistent with之前的研究)S3失忆了 没出题 P1 因为 service 是 intangible 的,所以比 product 难做 marketing。所以 service firm 花在 MC 的钱比 nonservicefirm 花的少。作者提出疑问:这个 assumpion 正确吗?
Because services are intangible, they can be more difficult to communicate and display than physical goods (Rathmell, 1974) Firms marketing physical goods (non-services) can readily display product features and attributes. Service organizations by comparison are limited to the communication of intangible features and/or the physical evidence associated with the purchase or use of a service.
That services are intangible and thus perhaps more difficult to communicate suggests two broad questions for service marketers. First, does the characteristic of intangibility imply that marketing communications (MC) will be any less effective for service firms? In other words, will the return on marketing communications expenditures be lower for service firms than for non-service firms? Second, if MC are less effective for services compared to non- services, should services marketers be spending relatively more, less, or the same amount on MC as non- service firms?
Research shows that in practice, MC expenditures among service firms are relatively lower than MC expenditures by non-service firms. This practice makes sense if the financial returns on MC investment are indeed lower for services. On the other hand, it can also be argued that if returns are relatively lower service marketers need to spend more to generate equivalent sales and profit volume. At this time there exists no compelling evidence to support either position.
The purpose of this exploratory study is to provide services marketers with information that can be used to help make decisions regarding MC expenditures. This is accomplished by assessing MC intensity and effectiveness across several hundred service and non-service firms serving both consumer and organizational markets. In an effort to address short- and long-term budgeting concerns, both the current impact and the duration (carryover) of MC on sales are examined.
【本月原始】wunderkindye
4.向客户介绍产品(MC)
以往研究表明service公司相比non-service公司在MC上花费较少资源,以往对此的解释是service的产品特征难以描述,因此公司不关注。
新的研究发现service公司其实比non-service公司在MC上得到的回报更好(这里要注意研究分为2B和2C的service和non-service公司,一共四种情况,在2B时service比较好,2C时差不多,有一道题时关于这里的细节的)。研究者结合之前的研究解释为service公司不是不关注MC,而是做MC的效率较高,因此花费较少资源。
H1a: MCI will be lower among consumer service firms than among consumer non-service firms.
H1b: MCI will be lower among industrial service firms than among industrial non-service firms.
H2a: The magnitude of the current impact of marketing communications on sales will be lower for consumer service firms than for consumer non-service firms.
H2b: The magnitude of the current impact of marketing communications on sales will be lower for industrial service firms than for industrial non-service firms.
DISCUSSION AND MANAGEMENT IMPLICATIONS
p1 讲了人们认为 service industry 的 MC 不如 nonservice industry 有效,因为一个原因(assumption 此处高亮有题)第一段最后一句是个问句,说这个 assumption 一定是对的么?
In general, this study reports three attempts, all unsuccessful, to find evidence in support of the assumption that intangibility or some other unique characteristic makes services communications less effective than non-services communications. Another finding was the reaffirmation that consumer service firms spend less on MC than consumer non-service firms. In light of this information several important questions arise. For instance, why are service firms spending less on MC than non-service firms? Why is it that despite lower expenditures services MC seems to be no less effective, or in the case of consumer services more effective, at generating sales?
Additionally, why are there differences in MC effectiveness among firms serving consumer and organizational markets? Finally, in light of these findings should service firms spend less or more on MC? The following section offers some tentative answers to these questions.
One explanation would be that consumer service firms expect lower returns on their MC expenditures. Perhaps some service firms are heeding the current rhetoric in the literature regarding the difficulty of communicating services and interpreting it to mean that MC will be less effective. As a consequence they are spending less on MC.
In setting MC budgets, there are factors other than expected returns to consider, some of which may weigh more heavily on the decision than return on advertising. Perhaps service firms are in general more limited in terms of availability of operating funds and are thus unable to spend on MC at the same level as non-service firms. For instance, many service firms (eg, retailers) operate on razor-thin margins and/or operate in intensely price- competitive arenas (eg, airlines).
It is interesting to note that while consumer service and non-service firms differ in terms of MCI, there are no significant differences in Al. This would seem to suggest that differences in MCI may be attributable to one or more of the other elements of the MC mix (eg, personal selling, sales promotion, public relations activities).
One of the surprise findings of the study is that the current impact of MC on sales is higher for consumer service firms than for consumer non-service firms. Undeniably, intangibility can make communication more difficult. So how can service firms spend less on MC and still get higher returns? Several possible explanations come to mind.
First, perhaps intangibility is not such a limiting factor, or current practices aimed at adding tangibility to services communications are working. However, without complete information on the nature of the marketing communications used for each of these firms during the test period, this conclusion remains speculative.
Alternately, perhaps service firms are making more efficient use of their limited MC budgets or the MC expenditure levels for many service firms are well below the point of marginal diminishing returns. If this is the case, the rate of change in sales given an incremental increase in MC would be predictably higher for service firms than for non-service firms spending closer to the point where marginal revenue equals marginal cost.
Another explanation would be that MC may cost less for many service firms. Many service producers serve only limited geographic markets. This dictates emphasis on local rather than national MC. In some instances, the cost of local communications (eg, advertising, telemarketing) is lower than national communications. For example, many media have both local and national rates with the latter of the two frequently being higher. Consequently, some service firms may be able to accomplish more while spending less.
While the current effects of MC on sales among consumer services is greater than that of consumer non- services, the same does not hold true for the industrial services to non-services comparison. Though adding credence to the idea that services and non-services MC are not different in terms of effectiveness, this finding may create some confusion as well. Namely, why is there a difference among consumer firms but not among industrial firms?
Two possible explanations are offered. First, it is widely held that the typical MC mix among consumer firms can be substantially different from that of industrial firms in terms of the relative weights and contributions of the various elements of the MC mix. For instance, many industrial firms tend to rely more heavily on personal selling than advertising. Perhaps such differences can help explain why the comparisons yield different results.
Second, a comparison of the average current impact of MC for all four types of firms shows that the average current impact of MC is much lower for consumer non-services than for the three remaining groups. Therefore, the differences in the comparisons across consumer and industrial firms may be attributable solely to some unique characteristic of consumer non-service firms not identified in this study. This point is merely speculative but deserves further attention.
From the secondary analysis, the finding that the current effects of advertising on sales among consumer services is not different from that of non-services adds further support for the notion that services communications are not less effective. This would suggest that if true differences in MC effectiveness do actually exist, they may be attributable to some other element of the MC mix.
Alternately, this finding may be due to a unique artifact of the limited set of firms examined. For instance, the 52 service and non-service firms for which the data for the secondary analysis were obtained are among the top 100 advertisers in the United States. As such, one would expect firms spending at such levels to be operating somewhere close to the point of diminishing marginal returns. Perhaps significant differences are not readily apparent for firms advertising at such high levels regardless of the tangibility of the product.
In addition, many of the firms represented in the data set operate in rather intensely competitive industries (eg, beer, airline, bank cards, long-distance telephone services). As a result, such firms may be forced to spend beyond peak efficiency just to keep up with competition. Lack of significant differences may also be attributable to the small size of the data set (39 non-service firms and 13 service firms). A larger, more diverse set of data need be examined before any conclusions can be reached on this particular issue.
Another general finding of this study was that the carryover of MC effects is not different among service or non- service firms regardless of the market served. The same results were obtained for both total MC as well as advertising alone. This adds even further credence to the notion that services MC are not any less effective in the short- or long-term.
But why would MC have a greater impact on sales in the short run for consumer services but not in the long run? Perhaps the real problem with intangibility occurs over the long run rather than the short run. For instance, perhaps intangibility makes long-term storage and recall of service attributes more difficult. Or, perhaps intangibility hinders evaluations of service quality more so than product quality.
Another possible explanation for the observed contrast in effects lies in potential differences in purchase cycles. Perhaps some types of consumer non-services are purchased more or less often than some types of services. As a result, the observed difference in the duration of MC between service and non-service firms may be attributable to the length of time between purchases. Additional data would be required to fully explicate the nature of these situational effects.
Should services marketers be spending relatively less on communications than their non-services counterparts? Overall, the results from this study suggest two implications for promotional budgeting. First, decision makers in service firms should not necessarily spend less on MC than their non-service counterparts. By spending less, service firms could experience a decrease in both short- and long-term sales. To the contrary, due to the potential for higher relative effectiveness, some consumer service firms may wish to increase expenditures, at least to the point of diminishing marginal returns.
Second, if differences in short or long-term effectiveness do exist, they are likely to be attributable to elements of the MC mix other than advertising. Consequently, managers should carefully monitor and assess the MC mix to identify communication components having the most impact on current sales results and budget accordingly. Based on the results of this study advertising remains a valid component of the promotional mix.
SUGGESTIONS FOR FUTURE RESEARCH
Given these exploratory results, additional research on this topic may offer pragmatic insights. This study is representative of a 'natural' experimental design. As a result, complete closure was not obtained for many extraneous variables. Future research would benefit by using 'true' experimental designs to eliminate many possible sources of extraneous influence.
In addition, future research in this area would benefit from a direct analysis of the impact of varying intensities and types of MC activities on product sales. For example, by analyzing the impact of frequency as well as the content of specific advertisements for each firm, the effectiveness of specific communications strategies can be examined and compared. This should result in less speculative conclusions. Given that purchase cycles of non- services as a whole may differ from services, future research should consider purchase cycles as well.
Research examining the differences among the various types of services and the various levels of tangibility for different types of services may also prove enlightening. Specific characteristics of the service offering could be investigated to identify possible 'characteristic clusters' that evince tangibility. To the extent that these generalizations are possible, service marketers would then have a better understanding of focal images and cues to use in their MC.
Also, future research should further investigate the impact of total marketing communications as well as each individual component of the communications mix (ie, sales promotion, advertising, personal selling efforts, publicity). Finally, there is a need to obtain a better understanding and explanation for the differences between consumer and industrial marketing communication effectiveness as it relates to both services and non-services.
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