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DESIGNING
AND
MANAGING
SERVICES
HOW DO WE DEFINE & CLASSIFY SERVICES, AND HOW
DO THEY DIFFER FROM GOODS ?
“SERVICE IS ANY ACT OR
PERFORMANCE THAT ONE
PARTY CAN OFFER TO
ANOTHER THAT IS
ESSENTIALLY INTANGIBLE
AND DOES NOT RESULT IN
THE OWNERSHIP OF ANY
THING”
5 TYPICAL
OFFERINGS
PURE TANGIBLE GOODS
TANGIBLE GOOD
WITH
ACCOMPANYING
SERVICES
HYBRID
MAJOR SERVICE
WITH
ACCOMPANYING
MINOR SERVICES
PURE SERVICES…
FURTHER
GENARALISATION WITH
FEW DISTINCTION
RESULTS…..
EQUIPMENT BASED
PEOPLE BASED
AUTOMATED CAR WASH
WINDOW WASHING
BASED ON PROCESS OF
DELIVERY 
FAST FOOD
PRESENCE OR ABSENCE
OF CLIENT….
CLIENT PRESENT
 CLIENT ABSENT
PERSONAL
NEEDS
BUSINESS
NEEDS
PROFIT
NON-PROFIT
BASED ON OBJECTIVE..
HOW GOODS DIFFER
FROM SERVICE ??
INTANGIBILITY
UNLIKE PHYSICAL PRODUCTS , SERVICES
CANNOT BE SEEN , TASTED , FELT , HEARD ,OR
SMELLED BEFORE THEY ARE BROUGHT
DISNEY IS A MASTER AT
“TANGIBILIZING THE INTANGIBLE”
INSEPARABILITY
VARIABILITY
“SINCE THE QUALITY OF
SERVICE DEPENDS ON WHO
PROVIDES THEM , WHEN
AND WHERE , AND TO
WHOM , SERVICES ARE
HIGHLY VARIABLE”
PERISHABILITY
“ THE RIGHT SERVICES MUST BE AVAILABLE
TO THE RIGHT CUSTOMERS AT THE RIGHT
PLACES AT THE RIGHT TIMES AND RIGHT
PRICES TO MAXIMIZE PROFITABILITY”
CREATED BY ELDHOSE ALIAS , MEC
ERNAKULAM ,DURING AN INTERNSHIP
BY PROF . SAMEER MATHUR , IIM
LUCKNOW
www.IIMInternship.com

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