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Classification of Services

Classification of Services. Degree of Tangibility of Service Process. Who or what are the direct recipient of Service Process. Customization Vs. Standardization. Nature of relationship with the customers. Extent to which demand and supply are in balance.

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Classification of Services

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  1. Classification of Services Degree of Tangibility of Service Process Who or what are the direct recipient of Service Process Customization Vs. Standardization Nature of relationship with the customers Extent to which demand and supply are in balance Extent to which facilities, equipment, and people are part of the service experience The place and time of service delivery

  2. Classification of Services Degree of Tangibility of Service Process NATURE OF THE ACT RECEIPIENT OF THE ACT Service directed at people’s bodies Service directed at physical possession • Freight transportation • Industrial equipment mant • Laundry and dry cleaner • Veterinary care • Health Care • Hair cutting • Passenger Transportation • Restaurant TANGIBLE ACTION Service directed at people’s minds Service directed at Intangible Assets INTANGIBLE ACTION • Education • Broadcasting • Information services • Theatres • Museums • Banking • Legal service • Security • Insurance

  3. Classification of Services Relationship with customer NATURE OF SERVICE DELIVERY TYPE OF RELATIONSHIP Non formal Relshp Membership relation • Cable TV • Mutual Fund • Telephone • Banking • College Enrollment • Radio Station • Police production • Light house • Public highway CONTINUOUS DEL. OF SERVICE • Car rental • Mail service • Toll bridge/way • Restaurant • Pay phone • Long distance phone call • Theatre season ticket • Commuter ticket DISCRETE

  4. Classification of Services Customisation EXERCISE OF JUDGEMENT BY CUSTOMER CONTACT PERSON EXTENT OF CUSTOMISATION Low High • Legal Services • Health Care • Taxi Service • Beautician • Tutorials • Education: Large classes • Preventive health care High • Public Transmission • Routine appliance maintenance • Movie Theatre • Telephone service • Hotel service • Retail banking Low

  5. Classification of Services Nature of Demand EXTENT TO WHICH SUPPLY IS CONSTRAINED EXTENT OF DEMAND FLUCTUATION OVER TIME Narrow Wide • Natural gas • Telephone • Hospital • Tourist lodging • Insurance • Banking • Dry cleaner Peak demand CAN be met without delay • -do- with less base level capacity • Accounting • Electricity • Theatres Peak demand regularly exceeds capacity

  6. Classification of Services Method of Service Delivery NATURE OF INTERACTION WITH CUSTOMER AVAILABILITY OF SERVICE OUTLET Multiple Site Single Site • Haircutting • Beauty Saloon • Theatre • Bus service • Fast food chain Customer goes Service Provider Comes • Taxi • Mail delivery • National radio • Telephone Company • Credit Card • Local Radio Station Arm’s length

  7. Classification of Services Level of equipment used HIGH People’s Participation HIGH LOW LOW

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