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

How do we define and classify services,

and how do they differ from and how do they differ from goods?

SERVICE

N. I n tan g i b l e o f f e r i n g f ro m o n e p ar ty t o an o th e r

PRODUCTmaymay not ACCOMPANYmay not ACCOMPANY

SERVICEs

Pure service

Service as a primary component

Air travelMajorly service

Products like snacks and magazines involvedmagazines involved

A good - like airplane - is required for its realization

Hybrid

RestaurantFood, its preparation

ServiceAND

Service as a secondary component

W I D Erange of range of services

exist

OR

Peoplebased

OREquipmentbased

processesBased on the followed for the servicefollowed for the service

Food service 1Grill table service

Food service 2Cafeteria style service

Food service 3Buffet service

Food service 4Counter table service

Food service 5Englishtable service

Based on the client’s presence during the serviceduring the service

OR

Personalservices

ORBusinessservices

Based on the sector of operation

Private

Non profit

Public

Non profit

Private

Profit

Public

Profit

BOTHare market offerings

services physical goods

DIFFERENTBut, they are

HOWHOW

11

intangibleServices cannot be felt before purchaseThey are

Customers evaluate their decision by

evidence!

EVIDENCE

Place

PeoplePrice

EVIDENCE

Equipment

Communication

Symbol

22

Manufacture Inventory Distribution

Product supply chain

SERVICE Production

Consumption

Provider-client interaction is crucial part of services marketing

33

SERVICE Production

Consumption

Who?

When?Where?SERVICE

Whom?Where?

Variability is ingrained in services

44

perishableServices cannot be stored

They are perishableThey are

DEMAND SUPPLY,DEMAND SUPPLY,Generally!

SO

Differential pricing

Non peak demand

Part time employees

Peak time efficiencyNon peak demand

Complementary services

Reservation systems

Peak time efficiency

Shared services

Future expansion facilities

DEMAND SUPPLY,SO

Differential pricing

Non peak demand

Part time employees

Peak time efficiencyNon peak demand

Complementary services

Reservation systems

Peak time efficiency

Shared services

Future expansion facilities

Presentation byDivyasree P K

IIT Madras