naturecharacteristicsofservices

8/13/2019 naturecharacteristicsofservices

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Nature, characteristics

And

Classification of services


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Differentiating services from goods

Search goods Experienced goods

Prior purchase/useOnly after buying orafter consumption

Tangible Intangible

Goods


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S.NO. Physical goods services

1 Tangible Intangible

2 Homogeneous Heterogeneous

3 A thing An activity and process

4 Core value produced infactory

Core value produced in the buyerand seller interactions

5 Customer do not participate inthe production process

Customer participate in theproduction

6 Can be kept in stock Cannot be kept in stock7 Transfer of ownership No transfer of ownership

8 Production and distributionare separated fromconsumption

Production ,distribution andconsumption are simultaneousprocess

Differences between services andphysical goods


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Element Core Goods

Example

Core Service

Example

Business Custom clothier Business hotel

Core Business suits Room for thenight

Peripheral

Goods

Garment bag Bath robe

Peripheral

Service

Deferred

payment plans

In house

restaurant

Variant Coffee lounge Airport shuttle


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Degree of Interaction and CustomizationLow High

Service factory: Service shop:

* Airlines * Hospitals

Low * Trucking * Auto repair

* Hotels * Other repair services

* Resorts and recreation

Mass service: Professional service:

* Retailing * Doctors

High * Wholesaling * Lawyers

* Schools * Accountants* Retail aspects of * Architects

commercial bankingDegreeoflaborintensity


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Supporting Facility: The physical resources thatmust be in place before a service can be sold.Examples are golf course, ski lift, hospital,airplane.

Facilitating Goods: The material consumed by thebuyer or items provided by the consumer.Examples are food items, legal documents, golfclubs, medical history.

Information: Operations data or information that

is provided by the customer to enable efficient andcustomized service. Examples are patient medicalrecords, seats available on a flight, customerpreferences, location of customer to dispatch a taxi.


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Explicit Services: Benefits readily observableby the senses. The essential or intrinsicfeatures. Examples are quality of meal, attitude

of the waiter, on-time departure. Implicit Services: Psychological benefits or

extrinsic features which the consumer maysense only vaguely. Examples are privacy of

loan office, security of a well lighted parkinglot.


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Simultaneity

Perishability

Intangibility

Variability

Inseparability


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Services are rendered and consumed duringthe same period of time. As soon as the serviceconsumer has requested the service (delivery),

the particular service must be generated fromscratch without any delay and friction and theservice consumer instantaneously consumesthe rendered benefits for executing his

upcoming activity or task.


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The service relevant resources, processes andsystems are assigned for service delivery during adefinite period in time. If the designated orscheduled service consumer does not request. An

empty seat on a plane never can be utilized andcharged after departure. When the service has been completely rendered to

the requesting service consumer, this particularservice irreversibly vanishes as it has been

consumed by the service consumer. Example: thepassenger has been transported to the destinationand cannot be transported again to this location atthis point in time.


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Services are intangibleand insubstantial: theycannot be touched, gripped, handled, looked at,smelled, tasted or heard. Thus, there is neitherpotential nor need for transport, storageor

stocking of services. Furthermore, a service cannotbe (re)sold or owned by somebody, neither can itbe turned over from the service provider to theservice consumer nor returned from the serviceconsumer to the service provider. Solely, theservice delivery can be commissioned to a serviceprovider who must generate and render theservice at the distinct request of an authorizedservice consumer.
http://en.wikipedia.org/wiki/Intangible_assethttp://en.wikipedia.org/w/index.php?title=Insubstantial&action=edit&redlink=1http://en.wikipedia.org/wiki/Warehousehttp://en.wikipedia.org/wiki/Warehousehttp://en.wikipedia.org/wiki/Warehousehttp://en.wikipedia.org/w/index.php?title=Insubstantial&action=edit&redlink=1http://en.wikipedia.org/wiki/Intangible_asset


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Each service is unique. It is one-time generated,rendered and consumed and can never beexactly repeated as the point in time, location,circumstances, conditions, currentconfigurations and/or assigned resources aredifferent for the next delivery, even if the sameservice consumer requests the same service.Many services are regarded as heterogeneous

or lacking homogeneity and are typicallymodified for each service consumeror eachnew situation (consumerised).
http://en.wikipedia.org/w/index.php?title=Service_consumer&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Service_consumer&action=edit&redlink=1


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Example: The taxi service which transports theservice consumer from his home to the opera isdifferent from the taxi service which transports

the same service consumer from the opera tohis home another point in time, the otherdirection, maybe another route, probablyanother taxi driver and cab.


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The service provider is indispensable for servicedelivery as he must promptly generate andrender the service to the requesting service

consumer. In many cases the service delivery isexecuted automatically but the service providermust preparatory assign resources and systemsand actively keep up appropriate service

delivery readiness and capabilities.


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Additionally, the service consumer isinseparable from service delivery because he isinvolved in it from requesting it up to

consuming the rendered benefits. Examples:The service consumer must sit in the hairdresser's shop & chair or in the plane & seat;correspondingly, the hair dresser or the pilot

must be in the same shop or plane,respectively, for delivering the service.


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Direct Recipient of the ServiceNature ofthe Service Act People Things

Peoples bodies: Physical possessions:

Health care Freight transportationPassenger transportation Repair and maintenance

Tangible actions Beauty salons Veterinary careExercise clinics Janitorial servicesRestaurants Laundry and dry cleaning

Peoples minds: Intangible assets:

Education BankingIntangible actions Broadcasting Legal services

Information services Accounting

Theaters SecuritiesMuseums Insurance


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Type of Relationship between Service Organization and Its Customers

Nature of

Service Delivery Membership relationship No formal relationship

Insurance Radio station

Telephone subscription Police protection

Continuous delivery Electric Utility Lighthouse

of service Banking Public Highway

Long-distance phone calls Restaurant

Theater series tickets Pay phone

Discrete transactions Transit pass Toll highwaySams Wholesale Club Movie theater

Airline frequent flyer Public transportation


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Extent to Which Service Characteristics Are Customized

Extent to Which Personnel

Exercise Judgment in Meeting

Customer Needs High Low

Surgery Preventive health programs

High Taxi services Education (large classes)

Gourmet restaurant Family restaurant

Telephone service Public transportation

Hotel services Spectator sports

Low Retail banking Movie theater

Cafeteria Institutional food service


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Availability of Service Outlets

Nature of Interaction

between Customer and

Service Organization Single site Multiple site

Customer travels to Theater Bus service

service organization Barbershop Fast-food chain

Service provider Taxi Mail delivery

travels to customer Pest control service AAA emergency repairs

Taxi

Transaction is at Credit card company Broadcast networkarms length Local TV station Telephone company


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