Nature and characteristics of Service

This ppt has also included importance of service

1. Teju kumar d.s 1 st sem mba

2. A service is any act of performance that one party can offer another that is essentially intangible and does not result in the ownership of anything; its production may or may not be tied to a physical product Service “ A service is an act of performance that one party can offer to another that is essentially intangible and does not result in the ownership of anything. Its production may or may not be tied to a physical product.” - Philip Kotler

3. Services are intangible we cannot touch them as they are not physical objects. A consumer feels that he has the right and opportunity to  see ,  touch, hear , smell or taste the goods before they buy them but his is not applicable to services. The services are not known to the customer before they take them. 1. INTANGIBILITY Nature and characteristics

4. Mobile network providers like Vodafone , Airtel , Reliance , etc. INTANGIBILITY EXAMPLE

5. Service cannot be stored Value of service exists at the point when it is required. Services perish as soon as they are used. Services last for a specific time and cannot be stored like a product for later use. 2. PERISHABILITY

6. For example government bus

7. Services cannot be separated from the service provider. Thus , the service provider would become a part of a service . Production and consumption of services go hand in hand. 3. INSEPARABILITY

8. Taxi operator drives taxi, and the passenger uses it. The presence of taxi driver is essential to provide the service. INSEPARABILITY EXAMPLE

9. The quality of services cannot be standardized. Systems and procedures are put into place to make sure the service provided is consistent. The service firms should make an effort to deliver high and consistent quality by selecting good and qualified personnel for rendering the service. 4. HETEROGENEITY

10. Live concerts like singing , dancing and comedy shows , movies , etc. HETEROGENEITY EXAMPLE

11. In the sale of goods, after the completion of process, the goods are transferred in the name of the buyer and he becomes the owner of the goods . But in the case of services, the users have only an access to services. They cannot own the service. 5. OWNERSHIP

12. Membership of a gym and swimming pool OWNERSHIP EXAMPLE

13. A service sector requires another tool for measurement. We can measure it in terms of service level. It is very difficult to rate or quantify services. 6. QUALITY MEASUREMENT

14. We can quantify the food served in a hotel but the way waiter serves the customer or the behavior of the staff, timely delivery , hygiene etc. cannot be ignored while rating the total process . Thus the firm sells good atmosphere, convenience of customers, consistent quality of services, etc . QUALITY MEASUREMENT EXAMPLE

15. The services are fluctuating in nature. The demand of services can be abnormal, sudden seasonal, situational & dependent. Therefore , while identifying the salient features of services one cannot ignore the nature of demand . 7. NATURE OF DEMAND

16. Physical Evidence and Presentation Place People Equipment Communication material Symbols Price

17. Service Blueprints

18. By market Segment Business Consumed End consumer Coaching , Taxi, Car wash, Life insurance Management Consulting, Machinery Repair, Accounting Services, Legal services Classifications of Services 1. By Market Segment

19. By degree of Tangibility Highly Intangible Highly Tangible Car rental, Vending Machines Psychotherapy, consultancy , legal services. 2. By degree of Tangibility Services Linked to Tangible goods Domestic appliances repair, Car services

20. By skills of the service Providers Non -professional Professional Medical services, Legal services, Accountancy , Tutoring Babysitting, Caretaking, Casual Labour , Uniformed security, Taxi. 3. By Skills of Services Providers

21. By Business Orientation Commercial Non -profit organization Scouts Association, Charities public sector Leisure facilities Banks, Airlines, Tour Operators, Hotel and Catering services 4. By Business Orientation

22. By degree of Regulation Non-regulated Highly Regulated Mass transit, Hospitals, Insurance, Utilities Computer time, leisure lawn care, House painting 5. By degree of Regulation Limited Regulated Catering, Fast food

23. By Type of End Users Industrial service Consumer service Beauty care, Hair cutting Machine installation, plant maintenances 6. By Type of End Users Business to Business Market research, Advertising

24. Changing Lifestyle Upward Trend in Disposable Income Professionalism in Education Sophistication in Market Increasing Government Activities Information Explosion Increasing Literacy Rate Increasing Specialization Importance of services Importance of services

25. Upward trend in the disposable income: in past 10years the income of Indian consumer is found to be moving upward. Increase in specialization: People want more perfection to be reworded suitably Change in life cycle: Development of corporate culture emergence of well established services there is a drastic change in life cycle Importance of service

26. Increasing literacy rate: due to education mission of government of India literacy rate in India Professionalism in Education: The professional excellence would get a new priority and the masses would tempted to professional education Information Explosion : invention and innovations in the field of communication have been found explosion in information

27. Sophistication in Market : It is natural that one finds sophisticated in market were customers expectations would find high Increasing Government Activities: Expanding government activities give mainly to that participation of state in almost all sectors would make ways for the development in service sector

28. Thank you