Designing and Managing Services-How do we define, classify services?

1How do we define and classify

services, and how do they differ

from goods?

A service is any act or performance one party can offer to another that is

essentially intangibleand does not result in the ownership

of anything.

Its production may or may not be tied to a physical

product.

It’s growing fast, REALLY FAST!!!!

EXAMPLEs

Government Sector(Public Non-Profit)

EXAMPLEs

Tourism Industry(Public/Private Profit)

EXAMPLEs Educational Institutions

(Public/Private Non-Profit)

Hospitality Industry

EXAMPLEs

Classification of

Services

People-based Equipment-based

1

OR

Based on ways to deliver 2

Client’s Presence Client’s Absence3OR

Personal Needs Business Needs4

OR

Profit Non-Profits5

OR

PrivatelyOwned

PubliclyOwned

6OR

How are they

different from

goods?

1. Intangible

Services can’t be touched, seen or felt before they are bought

Physical products are tangible

Inseparable2.Physical Products are

manufactured and consumed later

Services are manufactured and consumed

instantaneously

Variability3.

There’s very high number of variability in quality of

services

Not much variability to see in Physical

Products(similar products)

Car? Train? Plane? Boat? Horse?

4. PerishablePhysical Products may or may not

perish instantaneously

Services need to be delivered at right place at right time to right people

Credits• http://www.starlinghotelmanagement.com/images/image1.jpg

• http://i.ytimg.com/vi/_18M52mZfYQ/maxresdefault.jpg

• http://i.ytimg.com/vi/QaqpoeVgr8U/maxresdefault.jpg

• http://www.thehindubusinessline.com/multimedia/dynamic/01164/BL03_PANI_1164089f.jpg

• http://thenextweb.com/wp-content/blogs.dir/1/files/2013/10/projected-sales-growth.jpg

• http://globalpatriot.com/wp-content/uploads/2009/06/Government-Services-e1263015360639.jpg

• https://papercomsols.files.wordpress.com/2013/08/graduation_2010_11.jpg

• https://www.matchdeck.com/uploads/image/asset/10629/large_hospitality600x300.jpg

• http://thumbs.dreamstime.com/z/pizza-delivery-man-7741877.jpg

• http://foundry-wp.com/wp-content/uploads/2012/06/IMG_0050_small.jpg

• http://www.adweek.com/files/imagecache/node-detail/news_article/kayak.jpg

• http://im.rediff.com/money/2013/dec/19sbi1.jpg

• http://s3.amazonaws.com/brandrepup/service_page_images/20686/original/11.jpg?1427129983

• http://s3.amazonaws.com/rapgenius/filepicker%2FzBZhEi9CQIGfFXNrAbBj_touch.jpg

• http://cdn.iag.me/assets/thank-you-540x358.jpg

DISCLAIMER

•Created by ANURAG JAIN, NIT ALLAHABAD, during an internship by Prof. Sameer Mathur, IIM Lucknow.

• www.IIMInternship.com