2. What are services
• Services are deeds, processes, and performances
provided by one entity or person for another entity or
person
• “…All economic activities whose output is not a physical
product, and is generally consumed at the time it is
produced, provides added value in forms that are
essentially intangible concerns of its first purchaser
(convenience, health, comfort, amusement)…”
• Examples : The core offerings of hospitals, hotels, banks
and utilities are primarily deeds and actions performed for
customers
3. Characteristics of services (IHIP)
• Intangibility
Because services are performances or actions rather than objects they cannot
be seen, felt, tasted, or touched in the same manner that you can sense
tangible goods
Example : Heath care services are actions performed by the providers and
directed towards patients and their families
This services cannot be seen or touched by the patient
• Heterogeneity
Because services are performances, frequently produced by humans no two
services will be alike
The features of service by a provider cannot be uniform or standardised
Example : A Doctor can charge much higher fee to a rich client and take much
low from a poor patient.
4. • Inseparability
Personal service cannot be separated from the individual and some
personalized services are created and consumed simultaneously
Example : Hair cut is not possible without the presence of an individual
A doctor can only treat when his patient is present
• Perishability
Perishability refers to the fact that services cannot be saved, stored, or returned.
Example : A seat on an airplane or in a restaurant, or space in a shipping
container not used or purchased cannot be reclaimed and used or resold at a
later time
5. Importance of services sector
• Contribution to Gross Domestic Product
• Employment opportunities
• Contribution to Exports
• Helpful in Development of Infrastructure and Communication
Services
• FDI Inflows
• Nurturing IT/ITes sector as young sector
• Support to other sectors
6. Service Experience
• Definition: Sum of all encounters between a customer and a
service provider while buying, using or in retrospection
7. Service Experience
• Service Workers : A service worker is a person who provides a
service to other people, like a waiter or waitress
• Service Settings : Totality of the ambience and physical
environment in which a service occurs
• Service Customer : The actual individual who wants the service
• Service Process : Process in services refers to the actual
procedures, mechanisms, and flow of activities by which the
service is delivered
8. Service Experience Example Banking
• Workers : Are the Actual Staff members who work in the Bank
• Settings : Layout of the bank, Infrastructure, Ambience, etc
• Process : The actual process through the customer has to go
through to avail a service
• Customer : Person who is availing the service in the bank
14. Physical Stages of Service Experience
Stage 1
Before Entering
Setting
Stage 2
Reception &
Waiting Area
Stage 3
Service
Interaction
Stage 4
Customer
Departure
20. Tangible actions
Services for people Services for goods
Healthcare
Restaurant
saloons
Transportation
Repair and
maintenance
Dry cleaning
21. Intangible actions
Services directed at
people’s mind
Services directed at
intangible assets
Education
Theatres
Information
services
Banking
Legal services
Insurances
22. Classification of services
Degree of
tangibility
• Mcdonald
v/s Spa
Service
Target’
• Real Estate
vs Doctor
Place of
Delivery
• E-commerce
vs
wholesaler
Level of
customization
• Saloon vs
Indian
Railways
Customer
Relationship
• Dominos
23. Classification of services
Demand supply
fluctuation
• Hotels vs Car
Service Centre
Supply
Constraints
• Indian
Railways vs
Transport
Service
Interaction of
services
• Self Service
(ATM) Vs
Lawyer
26. PRE SERVICE ENCOUNTER
AWARNESS OF
NEED
Physiological Safety Social Esteem
Self-
Actualization
INFORMATION
SEARCH
Personal Impersonal
EVALUATION
OF
ALTERNATIVES
Evoked Set
Multi-attribute
model
Service
Attributes
Perceived
Risk
Service
Expectations
PURCHASE
DECISION
Risk
Mitigation
Trade offs