CHARACTERISTICS & CLASSIFICATION OF SERVICES

1. CHARACTERISTICS& CLASSIFICATION OFSERVICES

2. “ A service is an act of performance that one party can offer to another that is essentially intangible and does not result in the ownership of anything. Its production may or may not be tied to a physicalproduct.” - PhilipKotler SERVICEDEFINITION

3. CHARACTERISTICS OF SERVICE MARKETING INTANGIBILITY PERISHABILITY INSEPARABILITY HETEROGENEITY OWNERSHIP SIMULTANEITY QUALITYMEASUREMENT NATURE OFDEMAND

4. 1.INTANGIBILITY • Services are intangible we cannot touch them as they are not physicalobjects. • A consumer feels that he has the right and opportunity to see, touch, hear, smell or taste the goods before they buy them but his is not applicable toservices. • The services are not known to the customer before they takethem.

5. INTANGIBILITYEXAMPLE • Mobile network providers like Vodafone , Airtel , Reliance ,etc.

6. 2.PERISHABILITY • Value of service exists at the point when it isrequired. • Services perish as soon as they areused. • Services last for a specific time and cannot be stored like a product for lateruse.

8. 3. INSEPARABILITY • Services cannot be separated from the service provider. • Thus, the service provider would become a part of a service. • Production and consumption of services go handin • hand.

9. INSEPARABILITYEXAMPLE • Taxi operator drives taxi, and the passenger usesit. • The presence of taxi driver is essential to provide the service.

10. 4.HETEROGENEITY • The quality of services cannot bestandardized. • Systems and procedures are put into place tomake • sure the service provided isconsistent. • The service firms should make an effort to deliver high and consistent quality by selecting good and qualified personnel for rendering theservice.

11. HETEROGENEITYEXAMPLE • Live concerts like singing , dancing and comedy shows , movies ,etc.

12. 5.OWNERSHIP • In the sale of goods, after the completion of process, the goods are transferred in the name of the buyer and he becomes the owner of thegoods. • But in the case of services, the users have only an access toservices. • They cannot own theservice.

13. OWNERSHIPEXAMPLE Membership of agym

14. 6.SIMULTANEITY • Services cannot move through channels of distribution and cannot be delivered to the potential customers and user. • Either users are brought to the services or providers go to theuser. • It is right to say that services have limited geographicalarea.

15. COST & SIMULTANEITYEXAMPLE • When the producers approach the buyer to deliver services the cost of those services is increased. On the other hand it cost time and money for the buyers to come to producersdirectly. • A doctor’s visit tohome. • Electronics service, repair & maintenancecenters.

16. 7. QUALITYMEASUREMENT • A service sector requires another toolfor measurement. • We can measure it in terms of servicelevel. • It is very difficult to rate or quantifyservices.

17. QUALITY MEASUREMENTEXAMPLE • We can quantify the food served in a hotel but the way waiter serves the customer or the behaviour of the staff, timely delivery , hygiene etc. cannot be ignored while rating the totalprocess. • Thus the firm sells good atmosphere, convenience of customers, consistent quality of services,etc.

18. 8. NATURE OFDEMAND • The services are fluctuating innature. • The demand of services can be abnormal,sudden • seasonal, situational &dependent. • Therefore, while identifying the salient features of services one cannot ignore the nature ofdemand.

19. NATURE OF DEMANDEXAMPLE • Service quality level deteriorates during peak hours in hotels, transportationetc. • E-Retailers offering huge discounts on festive occasions • A marketer should effectively utilize the capacity without deteriorating the quality to meet the demand.

20. FEWADDITIONAL CHARECTERISTICS Services are sold exclusively on the basis of benefits theyoffer. Services cannot be made available inadvance. Time utility is critical. Services cannot betransferred. A service once consumed cannot bereturned.

21. Classificationof services

22. Consumerservices • Pure services : Activities performed that donot include a tangibleproduct. • Non-good services - Personal/professional service for a fee. • Example: taxpreparation. • Owned-goodservices- Activities that alter, improve, or repair products alreadyowned. • Example: dry cleaning, appliance repairservice. • Rented good services - Provide a product to use for a brief period for a fee. Example: carpet cleaners, movierental.

23. Classification on the basis of involvement ofcustomer • Peopleprocessing • Level of involvement canvary. • Managers must think about processes / outputsin • terms of what happens to customers or what benefits are created. • Identify non-financial costs, time, mentaland • physical effort, fear, and painetc. • Example : healthcare, beauty saloon, dentist, spa, tourism, transportation, restaurant,lodging

25. Possessionprocessing • Working to tight deadlines to restore customer’s possessions to good workingorder. • People are less physically involved and usually, no real need for them to enter the service; often limited to requesting the service; explaining the problem or paying the billonly. • Eg : post office /currier, laundry, ATM, warehousing, landscaping, gardening, office cleaning, repair and maintenance, freighttransportation

27. Mental stimulusprocessing • Services that interact with people’smind. • Anything touching people’s mind has power to shape attitudes and influencebehaviour. • Information based content can be converted to digital bits, recorded or transformed into manufactured products viz. CD’s, Video’s, which can be packed and sold like any physicalproduct. • Eg education , news , entertainment , Advertising/ PR , video games, music concerts,broadcasting

29. Informationprocessing • Most intangible form of serviceoutput. • Customer involvement determined more by tradition or personal desire to meet face to face and not by the needs of the operationalprocess. • Customer / Supplier learn each other’s needs, capabilities and personalities by personal meetings, however this relationship can also be build / sustained on trust or telephoniccontact. • financialservices,accounting, banking, Insurance, legal services, , MR, softwareconsulting

31. Classification based onservice tangibility • Services linked to tangiblegoods. • In order to experience the service customers should first purchase theproduct. • Eg alterations,warranties

32. Tangible goods linkedto services • Service provider offer tangible goods for use along with the services. • Eg. Theaters offer 3d glasses along withmovie

33. Classification on the business orientation • Non profit organisation: govt schools a social service. • Commercialorganization.

34. Classification on the basis of requirement of skill andexpertise • Professionalservices • Requires a set of qualificaion skills adequate training etc.eglawyer,pilot • Non professionalservices • Do not require any set of skillstraining. • Eg house keeping, babysittingetc

35. Classification on the basis of end user • Consumer services: beauty case haircase • Business to business services: market research andconsultancy • Industrial services: maachineinstallations