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