Classification of Services
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This document discusses key concepts related to services marketing. It defines what services are, noting they are deeds, processes, and performances provided by one entity for another. It outlines four main characteristics of services: intangibility, heterogeneity, inseparability, and perishability. The document also discusses the importance of the services sector, defines customer experience, and maps the physical stages a customer goes through during a service experience. It provides examples of these stages for banking services. Finally, it covers classifications of services and the consumer buying decision process as it relates to pre, during, and post service encounters.
Classification of Services
- 1. Service Marketing By Abhishek Kanojia Adnan Sara Ajay Gupta Altamash Ansari Amit Walawalker Ammar Rumane
- 2. What are services • Services are deeds, processes, and performances provided by one entity or person for another entity or person • “…All economic activities whose output is not a physical product, and is generally consumed at the time it is produced, provides added value in forms that are essentially intangible concerns of its first purchaser (convenience, health, comfort, amusement)…” • Examples : The core offerings of hospitals, hotels, banks and utilities are primarily deeds and actions performed for customers
- 3. Characteristics of services (IHIP) • Intangibility Because services are performances or actions rather than objects they cannot be seen, felt, tasted, or touched in the same manner that you can sense tangible goods Example : Heath care services are actions performed by the providers and directed towards patients and their families This services cannot be seen or touched by the patient • Heterogeneity Because services are performances, frequently produced by humans no two services will be alike The features of service by a provider cannot be uniform or standardised Example : A Doctor can charge much higher fee to a rich client and take much low from a poor patient.
- 4. • Inseparability Personal service cannot be separated from the individual and some personalized services are created and consumed simultaneously Example : Hair cut is not possible without the presence of an individual A doctor can only treat when his patient is present • Perishability Perishability refers to the fact that services cannot be saved, stored, or returned. Example : A seat on an airplane or in a restaurant, or space in a shipping container not used or purchased cannot be reclaimed and used or resold at a later time
- 5. Importance of services sector • Contribution to Gross Domestic Product • Employment opportunities • Contribution to Exports • Helpful in Development of Infrastructure and Communication Services • FDI Inflows • Nurturing IT/ITes sector as young sector • Support to other sectors
- 6. Service Experience • Definition: Sum of all encounters between a customer and a service provider while buying, using or in retrospection
- 7. Service Experience • Service Workers : A service worker is a person who provides a service to other people, like a waiter or waitress • Service Settings : Totality of the ambience and physical environment in which a service occurs • Service Customer : The actual individual who wants the service • Service Process : Process in services refers to the actual procedures, mechanisms, and flow of activities by which the service is delivered
- 8. Service Experience Example Banking • Workers : Are the Actual Staff members who work in the Bank • Settings : Layout of the bank, Infrastructure, Ambience, etc • Process : The actual process through the customer has to go through to avail a service • Customer : Person who is availing the service in the bank
- 9. Physical Stages of Service Experience
- 10. Physical Stages of Service Experience • Before Entering
- 11. Physical Stages of Service Experience • Reception & Waiting
- 12. Physical Stages of Service Experience • Service Interaction
- 13. Physical Stages of Service Experience • Customer Departure
- 14. Physical Stages of Service Experience Stage 1 Before Entering Setting Stage 2 Reception & Waiting Area Stage 3 Service Interaction Stage 4 Customer Departure
- 15. Physical Stages in Banks • Stage 1: Before Entering the Bank
- 16. Physical Stages in Banks • Stage 2: Reception & Waiting Area
- 17. Physical Stages in Banks • Stage 3: Service Interaction
- 18. Physical Stages in Banks • Stage 4: Customer Departure
- 20. Tangible actions Services for people Services for goods Healthcare Restaurant saloons Transportation Repair and maintenance Dry cleaning
- 21. Intangible actions Services directed at people’s mind Services directed at intangible assets Education Theatres Information services Banking Legal services Insurances
- 22. Classification of services Degree of tangibility • Mcdonald v/s Spa Service Target’ • Real Estate vs Doctor Place of Delivery • E-commerce vs wholesaler Level of customization • Saloon vs Indian Railways Customer Relationship • Dominos
- 23. Classification of services Demand supply fluctuation • Hotels vs Car Service Centre Supply Constraints • Indian Railways vs Transport Service Interaction of services • Self Service (ATM) Vs Lawyer
- 24. CONSUMER BUYING DECISION STAGES
- 26. PRE SERVICE ENCOUNTER AWARNESS OF NEED Physiological Safety Social Esteem Self- Actualization INFORMATION SEARCH Personal Impersonal EVALUATION OF ALTERNATIVES Evoked Set Multi-attribute model Service Attributes Perceived Risk Service Expectations PURCHASE DECISION Risk Mitigation Trade offs
- 27. SERVICE ENCOUNTER HIGH CONTACT SERVICE HOTEL RESTURANT HEALTHCARE, ETC. LOW CONTACT SERVICE WEB BASED TELEPHONE BASED APPS
- 28. POST SERVICE ENCOUNTER POSITIVE DISCONFIRMATION CONFIRMATION NEGATIVE DISCONFIRMATION