how do we define and classify services and how do they differ from goods

How to

Define &

Classify

Services ?

W ha t is mea nt

by SERV ICES?

A service is an

act or performance

one party can offer

to another that is

essentially INTANGIBLE

and does not results

in ownership of

anything.

AREY ! KEHNA KYA CHAHTE HO BHAI…!!!

A SERVICE is the action of doing

something for someone or something.

Production may or may

not be tied to a PHYSICAL

PRODUCT.

Growing Interest in SERVICE SECTOR.

GOVERNMENT SECTOR

EXAMPLE

POST COURTS HOSPITALS

PRIVATE NON PROFIT SECTOR

EXAMPLE

MUSEUMS CHARITIES

BUSINESS SECTOR

EXAMPLE

AIRLINES HOTELS

MANUFACTURING SECTOR

EXAMPLE

ACCOUNTANT COMPUTER

OPERATOR

H ow t o cla s s if y

SERV ICES?

Minor or Major part

of TOTAL OFFERING.

TOTAL OFFERING

PURELY TANGIBLE

ACCOMPANYING

SERVICES

HYBRID

MAJOR SERVICES

PURE SERVICES

PURELY

TANGIBLE

ACCOMPANYING

SERVICES

HYBRID

MAJOR

SERVICES

PURE SERVICES

H ow d o t hey d if f erf rom

GOODS?

IN TA N G IB ILTY

SERVICES

Buyers look for evidence to reduce

UNCERTAINTY.

Who are we ? Buyers

What do we do ? Look for evidence.

How do we do it?Drawing Inferences from

Place, people, equipment &

Price.

Manage the EVIDENCE.

Tangibilize the INTANGIBLE

example

IN SEPERA BILITY

Produced and

Consumed

SIMULTANEOUSLY.

Provider is a part

of SERVICE.

example

Strategies exist to

Tackle LIMITATIONS.

example

One to one Group One to Many

Services can be

HIGHLY VARIABLE.

Talk to others

before selecting

SERVICE PROVIDER.

Firms offer service guarantee

to increase QUALITY CONTROL

FLUCTUATING Demand.

YIELD MANAGEMENT

is critical.

RIGHT SERVICES to

RIGHT CUSTOMERS at

RIGHT PLACES at

RIGHT TIME and

RIGHT PRICE

RIGHT SERVICES to

RIGHT CUSTOMERS at

RIGHT PLACES at

RIGHT TIME and

RIGHT PRICE

Several strategies to

produce a better service

DEMAND and SUPPLY

relationship.

Differential Pricing

Cultivation of

non-peak Demand

Complimentary

Service

Reservation

Systems

Part time employees

Peak time efficiency

Increase consumer

participation

Future Expansion

SERVICES

A service is an act or performance a party can

offer to another which does not result in ownership of anything.

CATEGORIES

Purely Tangible

Accompanying Services

Hybrid

Major Services

Pure Service

DIFFERENCE FROM GOODS.

Intangible

Variability

Inseparable

Perishability