Services are intangible acts or performances provided by one party to another. They do not result in ownership of a physical product. Services can be classified in various ways, including people-based or equipment-based delivery, whether the client is present or absent, and whether the purpose is personal or business needs. Services differ from goods in that they are intangible, inseparable from their production and consumption which usually happen simultaneously, can vary significantly in quality, and are perishable if not provided at the right time and place.

2. 1
How do we define and classify
services, and how do they differ
from goods?

3. A service is any act or performance
one party can offer to another that is
essentially intangible
and does not result in the ownership
of anything.

4. Its production may or may not be
tied to a physical
product.

5. It’s growing fast,
REALLY FAST!!!!

6. EXAMPLEs
Government Sector
(Public Non-Profit)

7. EXAMPLEs
Tourism Industry
(Public/Private Profit)

8. EXAMPLEs Educational
Institutions
(Public/Private Non-Profit)

9. Hospitality
Industry
EXAMPLEs

10. Classification of
Services
People-based Equipment-based
1
OR

11. Based on ways to deliver 2

12. Client’s Presence Client’s Absence
3OR

13. Personal Needs Business Needs
4OR

14. Profit Non-Profits
5OR

15. Privately
Owned
Publicly
Owned
6
OR

16. How are they
different from
goods?

17. 1. Intangible
Services can’t be touched, seen
or felt before they are bought
Physical products are
tangible

18. Inseparable2.
Physical Products are
manufactured and
consumed later
Services are manufactured
and consumed
instantaneously

19. Variability3.
There’s very high number of
variability in quality of
services
Not much variability to see
in Physical
Products(similar products)
Car? Train? Plane? Boat? Horse?

20. 4. Perishable
Physical Products may or may not
perish instantaneously
Services need to be
delivered at right place at
right time to right people

22. Credits
• http://www.starlinghotelmanagement.com/images/image1.jpg
• http://i.ytimg.com/vi/_18M52mZfYQ/maxresdefault.jpg
• http://i.ytimg.com/vi/QaqpoeVgr8U/maxresdefault.jpg
• http://www.thehindubusinessline.com/multimedia/dynamic/01164/BL03_PANI_1164089f.jpg
• http://thenextweb.com/wp-content/blogs.dir/1/files/2013/10/projected-sales-growth.jpg
• http://globalpatriot.com/wp-content/uploads/2009/06/Government-Services-e1263015360639.jpg
• https://papercomsols.files.wordpress.com/2013/08/graduation_2010_11.jpg
• https://www.matchdeck.com/uploads/image/asset/10629/large_hospitality600x300.jpg
• http://thumbs.dreamstime.com/z/pizza-delivery-man-7741877.jpg
• http://foundry-wp.com/wp-content/uploads/2012/06/IMG_0050_small.jpg
• http://www.adweek.com/files/imagecache/node-detail/news_article/kayak.jpg
• http://im.rediff.com/money/2013/dec/19sbi1.jpg
• http://s3.amazonaws.com/brandrepup/service_page_images/20686/original/11.jpg?1427129983
• http://s3.amazonaws.com/rapgenius/filepicker%2FzBZhEi9CQIGfFXNrAbBj_touch.jpg
• http://cdn.iag.me/assets/thank-you-540x358.jpg

23. DISCLAIMER
•Created by ANURAG JAIN, NIT ALLAHABAD,
during an internship by Prof. Sameer Mathur,
IIM Lucknow.
• www.IIMInternship.com