Pricing pp 171-185 | Cite as

Pricing of Services

  • Nessim Hanna
  • H. Robert Dodge


Although both are viewed as products, services as intangibles can be distinguished from goods. Intangibility means that services cannot be grasped mentally, cannot be identified physically, but must be experienced for the customer to gain knowledge of with the intent to purchase. Services are not manufactured and shipped to the customer. Rather, services are dominated by experienced qualities and attributes that can be meaningfully evaluated only after purchase and during production-consumption.’ In combining goods and services into the same product package, goods give tangibility to services (for example, as souvenirs do to entertainment) while services augment goods (as, for instance, customer service does cars).


Service Business Service Personnel Travel Service Profit Contribution Capacity Price 
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Copyright information

© Nessim Hanna and H. Robert Dodge 1995

Authors and Affiliations

  • Nessim Hanna
    • 1
  • H. Robert Dodge
    • 2
  1. 1.Northern Illinois UniversityUSA
  2. 2.Department of MarketingEastern Michigan UniversityUSA

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