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Service As A Term, Goods and Service Classification, Service Characteristics

SERVICE

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Pragati Soni
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15 views

Service As A Term, Goods and Service Classification, Service Characteristics

SERVICE

Uploaded by

Pragati Soni
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPTX, PDF, TXT or read online on Scribd
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PRODUCT AND SERVICE

STRATEGY
DR. SHILPA BHAKAR
SERVICE AS A CONCEPT
 As old as humankind and began when man started
serving himself.
 Society became affluent- service became business
 Till beginning of 20th century focus of economies was
on goods rather than services.
 Services such as accounting, banking, transport,
insurance, telegraph were considered as support to
manufacturing units
 Now services influence our lifestyle and quality of life
significantly. Thus services became more important.
SERVICE AS A CONCEPT

 Over the years focus of economies have


changed from goods to services.
 Service economy: Contribution of services in
GDP of nation is more than 50%.
 In 1948 USA – first service economy- 53%
service contribution to GDP
SERVICE AS A TERM
 “Service is any activity or benefit that one party can
offer to another that is essentially intangible and does
not result in the ownership of anything”. - Kotler
 Service is an identifiable, intangible activity which is the
main objective of a transaction designed to satisfy the
specific need of a customer or group of customers
 “Services are activities, benefits or satisfaction which
are offered for sale are provided in connection with the
sale of goods.” - (American Marketing Association)
 Services are the human efforts which provide support to
the needy.
CLASSIFICATION OF GOODS AND
SERVICES

Pure Tangible goods: Full importance is on


tangible product as it is with negligible
service. Eg: Chocolates, pen, salt, chips
Tangible Goods with accompanying services:
Greater importance is given to tangible part
of the marketing offer and services are
identified and valued only in association with
the goods. Eg: Car, TV, Refrigerator
CLASSIFICATION OF GOODS AND
SERVICES

Hybrid: Equal importance is given to tangible


goods and the service provided in the
marketing offer. Eg: Restaurants, Hotels
Services with accompanying tangible goods: in
this intangible part is dominant and people
buy services and but not the tangible goods
involved in the marketing offer. Major of
services fall in this category. Eg: Transport
services, Hospital
CLASSIFICATION OF GOODS AND
SERVICES
 Pure Service: Where consumers confine
themselves to valuing only the service they
receive and nothing else. Eg: Teaching,
Consultancy, Research Advisory, Legal
Services, etc
CHARACTERISTICS OF SERVICES

 Intangibility- Cannot be seen, tasted, felt, heard, or


smelt before they are bought. It creates feeling of
uncertainty about the out come of the service.
Eg: Tourist services, Parlour or salon services.
 Customers look for evidence of quality in service offer.
 Location and physical settings- Accessible, physical
settings should be convenient to customers, layout and
traffic flow should be smooth i. e no or short waiting
lines, exterior design should be attractive and indicative
of service level and interior should be meaningful.
CHARACTERISTICS OF SERVICES

Intangibility-
 Employees and Agents- Neat, clean, presentable
appearance, sharp, knowleagble and sufficient in
number.
 Hardware tools and techniques- Employees should be
equipped with proper and latest hardware tools which
should help the employees in providing timely, speedy
and quality service to the customers.
 Communications- Material used for communication
with customers should depict the quality of the service
and it should be prompt.
CHARACTERISTICS OF SERVICES

 Inseparability-Services cannot be separated


from the service provider. In fact most of the
times services are delivered and consumed at
the same time. So need of service production
units at the place where service will be
provided. Technology has given some relief to
service organizations on this. Eg. Banking,
Railway bookings, etc.
CHARACTERISTICS OF SERVICES

 Variability-Services cannot be standardized.


No two customers will get the same service
experience. Experience varies due to the
human factor involved in it. Eg: Train or bus
travel due to seat location, Smile of the
receptionist
CHARACTERISTICS OF SERVICES

 Perishability- Services cannot be stored.


They are produced and delivered at the same
time. An unutilized service cannot be used
further.
 Eg- vacant train seats, time of doctor lawyer,
banking professional, hair dresser.
CHARACTERISTICS OF SERVICES

 Customer Participation- Service production


is a two sided activity. Production quality
depends on the ability, skill, knowledge and
performance of the employee as well as the
customer. This participation is not equal but
plays an important role. Eg: Hospital
 Customization is one of the key strategies for
service firms to ensure efficient and effective
participation. Eg: Hair dressing, Health clubs
CHARACTERISTICS OF SERVICES

 Lack of Ownership- Service customers


acquire experience not ownership, since
services are intangible and perishable.
Customer dissonance is very high in services.
It can be tackled with making communication
tangibile, good customer relationship
management, after sales service and
managing high level company image.

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