NEUE SCHULE’S SERVICE MARKET CHARACTERISTICS

Lack of ownership refers to the fact that you cannot own or store a service. (Maximillian Claessens, 2015.)

This is referring to the staff and big events such as Badminton, Olympia and HOYS. It gives people service (by providing the entertainment) and they also get to view all the products, but customers cannot own the service in the same way that they can own the products (provided by the shopping at the events, including being able to purchase Neue Schule’s bits). In this case, they have to wait yearly for the events to come around again. The Neue Shule bit is in the in-between stage, because you get both the product and the service.

Intangibility – you cannot store a service like you could a product; it’s not touchable.

With Neue Schule, the service would come from the staff providing advice and promoting their products at events (such as Badminton) because they are at an event, which classifies as an experience, but also allows people to gain knowledge and support on choosing the correct bit for the horse in question. This means the owner can gain knowledge when buying but physically cannot take the product home, until they know what they want to buy at a later date.

“Inseparability is a service characteristic that renders it impossible to divorce the supply or production of the service from its consumption”. (Boundless, 2020.)

Once the consumer has acquired the correctly fitted bit for their horse, such as one from Neue Schule, the owner will no longer need to buy several bits for their horse (due to Neue Schule’s technology that moulds to correctly fit the horse’s mouth) unless it becomes fitter, which can lead to the horse becoming stronger and changing shape. Then, the owner can look into the next design of bits to help with that situation. Also, if they are being fitted to young horses then the owner can keep coming back for new advice each time the horse progressed further and therefore reaches its next step in his/her career.

Perishability – services last a specific time and cannot be stored for later use.

Big events only come around once a year, so many people will not have the opportunity to go and ‘test’ Neue Schule’s bits, with all the advice added at the same time as well as being able to feel the quality of the product. As a result, people don’t always receive this service all year round.

Heterogeneity – systems and producers that endure that they provide a consistent service.

Neue Schule is a very popular brand that is known for its superior quality bits and high-end marketing, making it more expensive to buy. People feel as though they get provided with the best advice from the staff, they are made to feel special because the staff are always available to give advice when they buy the product, and this gives people satisfaction as they know they can keep their horse happy at all times. This, therefore, adds to the expense of the product because there is an element of inclusivity for each customer that other competitor brands may not provide.

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