How do we define and classify services , and how do they differ from goods ?

DESIGNING AND

MANAGING SERVICES

HOW DO WE DEFINE & CLASSIFY SERVICES, AND HOW DO THEY DIFFER

FROM GOODS ?

“SERVICE IS ANY ACT OR PERFORMANCE THAT ONE

PARTY CAN OFFER TO ANOTHER THAT IS

ESSENTIALLY INTANGIBLE AND DOES NOT RESULT IN THE

OWNERSHIP OF ANY THING”

5 TYPICAL OFFERINGS

PURE TANGIBLE GOODS

TANGIBLE GOOD WITH ACCOMPANYING SERVICES

HYBRID

MAJOR SERVICE WITH

ACCOMPANYING MINOR SERVICES

PURE SERVICES…

FURTHER GENARALISATION WITH FEW DISTINCTION

RESULTS…..

EQUIPMENT BASED

PEOPLE BASED

AUTOMATED CAR WASH

WINDOW WASHING

BASED ON PROCESS OF DELIVERY

FAST FOOD

PRESENCE OR ABSENCE OF CLIENT….

CLIENT PRESENT

CLIENT ABSENT

PERSONAL NEEDS

BUSINESS NEEDS

PROFIT

NON-PROFIT

BASED ON OBJECTIVE..

HOW GOODS DIFFER FROM SERVICE ??

INTANGIBILITY

UNLIKE PHYSICAL PRODUCTS , SERVICES CANNOT BE SEEN , TASTED , FELT , HEARD ,OR

SMELLED BEFORE THEY ARE BROUGHT

DISNEY IS A MASTER AT

“TANGIBILIZING THE INTANGIBLE”

INSEPARABILITYGOODS

ARE

MAN

UFAC

TURE

D

, INVE

NTED,

DIS

TRIB

UTED

AND T

HEN

CONSU

MED

BUT

SERV

ICES

ARE

PRODUC

ED A

ND

CONSU

MED

SIM

ULTA

NEOUS

LY

VARIABILITY“SINCE THE QUALITY OF

SERVICE DEPENDS ON WHO PROVIDES THEM , WHEN AND WHERE , AND TO WHOM , SERVICES ARE

HIGHLY VARIABLE”

PERISHABILITY

“ THE RIGHT SERVICES MUST BE AVAILABLE TO THE RIGHT CUSTOMERS AT THE RIGHT PLACES AT THE RIGHT TIMES AND RIGHT

PRICES TO MAXIMIZE PROFITABILITY”

CREATED BY ELDHOSE ALIAS , MEC ERNAKULAM ,DURING AN INTERNSHIP BY PROF . SAMEER MATHUR , IIM LUCKNOW

www.IIMInternship.com