how do we define and classify services, and how do they differ from goods ?
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Designing and managing services
Based on the book, marketing management by Kotler et. Al.
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How do we define and classify services, and how do they differ from goods ?
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What is a service ?
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It’s an act of performance
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Offered by one to the other
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A service is essentially intangible
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A service does not result in ownership of anything !
Every sense of loss comes from a false sense of Ownership. – Buddhism.
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Production of a service may or may not be tied to a physical product.
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Examples of services (government services)
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Examples of services (Private non-profit)
Private non-profit collegesPrivate non-profit organizations
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Examples of services (Business)
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Examples of services (Manufacturing)
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Examples of services (retail)
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Categories of service mix
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1. Pure tangible good
Soap
toothpaste
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2. Tangible good with accompanying services
Car
Car service
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Hybrid mix of goods & services
= +
preparationFoodRestaurant meal
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Service with accompanying tangible goods
Additional goods like snacks
Air travel also offers
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Pure service
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Distinctions between services
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1. Equipment based or people based
Automated car wash Manual window washing
v/s
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2. Difference between service processes
buffet Fast food Candle light
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3. Need (or lack of) of client’s presence
Brain surgery: presence needed Car repair: presence not needed
v/s
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4. Needs to meet: personal or business ?
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5. Difference in objectives and ownership
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Unique characteristics of services
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1. inseparability
• Service cannot be separate from the service provider
• the Service provider eventually becomes a part of the service.
• Production and consumption of services go hand in hand
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2. variability
• Services are highly variable in nature and differ in quality from one service provider to the next.
• They depend on who provides them, where, when & to whom!
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3. intangibility
• Services cannot be seen, tasted felt, heard or smelt before they are bought.
• They are essentially intangible in nature.
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4. perishability
• Services cannot be stored.
• They’re perishable, and subject to their demand and supply.
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Credits & References
• Flickr.com • Images.google.com
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Created by Dhananjay Goel, IIT Delhi, During an Internship by Prof. Sameer Mathur, IIM Lucknow.
www.IIMInternship.com
PROF. SAMEER MATHURIIM LUCKNOW
DHANANJAY GOELIIT DELHI