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Classification of Services

Presented BY Ravi Garg

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 Vs Goods
Services
Intangible Heterogeneous Produced in Buyer Seller interaction Production, distribution & consumption takes place simultaneously Consumers participate in production Cannot be stored Transfer of ownership cannot take place

Goods
Tangible Homogenous Produced in factory All three are separate & independent

Consumers dont generally participate Can be stored Transfer of ownership does 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.
Classifications can be done on following basis:
Classification by Industry Classification by Target Effect Skill level of service provider (Professional/ Nonprofessional) Labor intensiveness (People-based/Equipment-based) Degree of customer contact (High / Low) Goal of the service provider (Profit /Nonprofit)

Classification By Industry
a. b. c. d. e. f. g. h. i. j. k. l. Entertainment industry Education Telecommunications Finance & Insurance Transportation Public utilities Government services Health Hospitability Industry Business services Telecommunications Trading

Classification By Target Effect


Based on Degree Of Customer Involvement: ( Lovelock)
1. People Processing: Services aimed at physical care e.g. Healthcare, clinics, restaurant, hospitals, hair stylists, fitness centers

2.

Mental Stimulus Processing: Services aimed at mind of customer e.g. Education, information, entertainment, consulting, psychotherapy
Possession Processing: Services aimed at physical possession & tangible assets e.g. repair & maintenance, laundry, repair services, landscaping, house cleaning services Information Processing : Services for intangible assets e.g. Banking, legal consultation, brokerage, financial services.

3.

4.

Skill level of service provider


Teacher

Doctor
Engineer

Accountant

Labor intensiveness
Mechanic Electrician Labor Plumber Artisan

Degree of customer contact


High Degree (Every day) TV channels, mobile etc.
Moderate Degree (Regular) Teacher, Barber, washer man etc. Low Degree ( Occasional ) Priest, Doctors etc.

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