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