This document discusses key concepts related to services marketing. It defines what services are, noting they are deeds, processes, and performances provided by one entity for another. It outlines four main characteristics of services: intangibility, heterogeneity, inseparability, and perishability. The document also discusses the importance of the services sector, defines customer experience, and maps the physical stages a customer goes through during a service experience. It provides examples of these stages for banking services. Finally, it covers classifications of services and the consumer buying decision process as it relates to pre, during, and post service encounters.

1. Service Marketing
By
Abhishek Kanojia
Adnan Sara
Ajay Gupta
Altamash Ansari
Amit Walawalker
Ammar Rumane

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

9. Physical Stages of Service Experience

10. Physical Stages of Service Experience
• Before Entering

11. Physical Stages of Service Experience
• Reception & Waiting

12. Physical Stages of Service Experience
• Service Interaction

13. Physical Stages of Service Experience
• Customer Departure

14. Physical Stages of Service Experience
Stage 1
Before Entering
Setting
Stage 2
Reception &
Waiting Area
Stage 3
Service
Interaction
Stage 4
Customer
Departure

15. Physical Stages in Banks
• Stage 1: Before Entering the Bank

16. Physical Stages in Banks
• Stage 2: Reception & Waiting Area

17. Physical Stages in Banks
• Stage 3: Service Interaction

18. Physical Stages in Banks
• Stage 4: Customer Departure

19. Why classification
Relevant
and
clear
Nature
of the
process
For
pricing
the
category

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

24. CONSUMER BUYING DECISION STAGES

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

27. SERVICE ENCOUNTER
HIGH
CONTACT
SERVICE
HOTEL
RESTURANT
HEALTHCARE,
ETC.
LOW CONTACT
SERVICE
WEB BASED
TELEPHONE
BASED
APPS

28. POST SERVICE ENCOUNTER
POSITIVE DISCONFIRMATION
CONFIRMATION
NEGATIVE DISCONFIRMATION