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Services
Any activity or benefit that one party can offer to another that is essentially intangible & does not result in the ownership of anything. Its production may or may not be tied up to a physical product.
Services
Nature: An activity or process e.g. watching a movie in a cinema hall Intangibility: Intangible e.g. doctor treatment Type: Heterogeneous Inconsistency: Different customers having different demands e.g., mobile services Inseparability: Production, distribution & consumption takes place simultaneously e.g. eating ice-cream in a restaurant Involvement : Participation of customers at the time of service delivery e.g. self-service in a fast food joint. Inventory: Cannot be kept in a stock. e.g., experience of a train journey. Ownership: Transfer of ownership cannot take place
CHARACTERISTICS OF SERVICES
Classification of Services
It is required to design & apply marketing techniques to completely satisfy the customer & increase profits & identify new emerging services.
Degree of regulation Place & time Customization Relationship with customers Demand supply Degree of discretion Product & process
Classification By Industry
Entertainment industry Education Finance & Insurance Transportation Public utilities Government services Health Hospitability Industry Business services Telecommunications Trading
Market Segment
End consumers (Hair salon, beauty services, Coaching classes, Car wash etc.) Market segment
Degree of Tangibility
Tangible offerings ( food services, dry cleaning) Intangible services (Teaching & Medical services)
Rental goods (Hotel room, car rental, etc.) Owned goods (TV repair,laundry etc.) Non-goods (college education,legal)
Skills
Goals
Degree of regulation
Regulation
Labor intensiveness
Chase (1978) classified organizations on the basis of the contact time between the customers & the service provider
Customer contact
High contact (Education, Hotel) Low contact (Automated car wash, Appliance Repair services, postal services.)
Cutomization
On the basis of :
Customization
Customized (Taxi service, Hair cut) Standardized( Insurance policy, Bus route)
Customization: when the service process can be adapted to suit the needs of individual customers Standardised : where the service to be provided is predetermined & predesigned.
According to the nature of relationship with customers Relationship with customers Ongoing (Barber, Restaurant) Formal (Banks) Informal (Watching TV) Membership (College enrolment Air lines)
Relationships with customers Nature of service delivery Type of relationship between the service organization & its customers Membership relationship Insurance Telephone subscription newspaper/ magzine subscription Long-distance phone calls No formal relationship Police protection National highway Postal services
According to the demand for the service & the ability of the service organizations to match the demand
Demand supply
Degree of discretion
High : when front office personnel use judgement in altering the service package without referring to superiors Low: where changes to service provision can be made only with authorization from superiors.
Extra competition:
Emphasizing service instead of features
Creating a need:
Services are often produced & consumed simultaneously:
Remedial measures
Services have salient features necessitate a new vision, distinct approach & world class excellence to market effectively & profitably.