CAPS Concept

The CAPS concept enhances and supplements the 4 Ps of the marketing mix and has special significance in the marketing of services. The following connections may be considered.

1) Price + Consider the inconvenience that is caused to the customer. This could be loss of time, safety or loss of dignity. This adds to price.

2) Place + Access refers to the ease with which a service can be conveniently used

3) Promotion + Promotion of services – explore the many aspects of a service that are intangible

4) Product + Service has far more dimensions than a product and can only be experienced, not touched or smelt.

Example for use:

Applying CAPS to a bank to improve customer service.

Consideration – The paper work could be made easy to understand and someone may be deputed to help.

Access – Computer and Internet access may be provided so that people can complete their transactions from home or office. 24/7 ATMs improve access.

Promotion – Member-get-member programs may be used.

Service – Home delivery or office delivery of cash could be offered to selected clients.