Question

Fidelity Investments is the second largest mutual fund and financial services group worldwide. It has various offices in cities across the United States. In each office customer contact personnel have a well-groomed, professional appearance. The inside of the office is clean and attractive. These visible cues are an attempt to deal with the problem of ________________ common to service organizations.

Answer 1

Answer: Intangibility

Explanation: The intangibility of services is the incapacity to evaluate or judge the worth attained from engaging in an activity or work using any substantial proof. it is the service whereby there is no substantial product that the consumer can buy, which can be seen or felt, meaning that services do not have physical attributes.

In this case, Fidelity Investments made the inside of their office look neat and desirable so as to tackle the issue of intangibility of services, giving their customers substantial evidence of the financial service quality they offer. This will help in boosting the belief of the customers and remove their doubts or fears also, as they will have a clue of what they are paying for.

Answer 2

Answer:

Intangibility

Explanation:

Intangibility means a service that is not physical and therefore cannot be touched. Products are tangible and services are intangible in nature. Intangibility of services is gotten from the fact that a service cannot be seen or touched. A service is carried out and delivered on spot therefore it cannot be measured as easily as a tangible product.

A lot of problem are encountered in service marketing as a result of intangibility of services. Tangible elements have to be added your service to supplement your marketing strategy.

Another problem that arises from intangibility of services is that services cannot be stored.