How do we define and classify services, and how do they differ from goods
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This document discusses the classification and differences between services and goods. It defines a service as any act of performance that is intangible and does not result in ownership. Services can be classified based on whether they are equipment-based or people-based, how they are delivered, the needs they address, their objectives of profit or non-profit, and their ownership as private or public. Key differences between services and goods are that services are intangible and produced/consumed simultaneously, have more variability in quality, and are perishable unlike goods which can be touched, manufactured separately, and stored.
How do we define and classify services, and how do they differ from goods
- 1. Chapter 12: Designing and managing
- 2. How do we define and classify services, and how do they differ from goods? By: Kartik Singla Indian Institute of Technology(BHU), Varanasi
- 3. A service is any act of performance one party can offer to another that is intangible and does not result in the ownership of anything.
- 4. Government sector services (Police) Private Nonprofit sector services (colleges) Business sector services (companies) Manufacturing sector services (accountants)
- 5. Services can be classified on the basis of: 1. Equipment based People based Manual or automatic
- 6. 2. Different processes of delivery Different type of restaurant services
- 7. Presence or absence of client 3.
- 11. Differences between products and services
- 12. Physical products can be touched, But Services are Intangible i.e. they cannot be seen, tasted or felt before they are bought.”
- 13. Physical products are manufactured and consumed later, But Services are Inseparable i.e. they are produced and consumed simultaneously.
- 14. Physical products are of the same type if they belong to the same category, But Services have high Variability i.e. their quality depends highly on the provider.
- 15. Physical products can be stored, But Services are Perishable i.e. they need to be provided at the right place and time to right people.