This document discusses the key characteristics of services. It defines services as acts of performance that are intangible and do not result in ownership. Services are not tangible, cannot be stored, perish during consumption, and their quality is difficult to standardize. The document also classifies services in various ways, such as by market segment, degree of tangibility, skills required, and degree of regulation. Finally, it discusses factors driving the increasing importance of the services sector in India, such as rising incomes, education, information access, and government participation in more sectors.

2. Teju kumar d.s
1st sem mba

3. A service is any act of performance that one party can
offer another that is essentially intangible and does not
result in the ownership of anything; its production may or
may not be tied to a physical product
“ A service is an act of performance that one
party can offer to another that is essentially
intangible and does not result in the ownership
of anything. Its production may or may not be
tied to a physical product.”
- Philip Kotler

4.  Services are intangible we cannot touch them as they are not
physical objects.
A consumer feels that he has the right and opportunity
to see, touch, hear, smell or taste the goods before they buy them
but his is not applicable to services.
 The services are not known to the customer before they take
them.

5.  Mobile network
providers like
Vodafone , Airtel ,
Reliance , etc.

6.  Service cannot be stored
 Value of service exists at the point when it is
required.
 Services perish as soon as they are used.
 Services last for a specific time and cannot be
stored like a product for later use.

7. For example government bus

8.  Services cannot be separated from the service
provider.
 Thus, the service provider would become a
part of a service.
 Production and consumption of services go
hand in hand.

9.  Taxi operator drives taxi, and the
passenger uses it.
 The presence of taxi driver is essential to
provide the service.

10.  The quality of services cannot be standardized.
 Systems and procedures are put into place to
make sure the service provided is consistent.
 The service firms should make an effort to
deliver high and consistent quality by selecting
good and qualified personnel for rendering the
service.

11.  Live concerts like singing ,
dancing and comedy shows ,
movies , etc.

12.  In the sale of goods, after the completion of
process, the goods are transferred in the name
of the buyer and he becomes the owner of the
goods.
 But in the case of services, the users have only
an access to services.
 They cannot own the service.

13. Membership of a gym and swimming pool

14.  A service sector requires another tool
for measurement.
 We can measure it in terms of service
level.
 It is very difficult to rate or quantify
services.

15.  We can quantify the food served in a hotel
but the way waiter serves the customer or
the behavior of the staff, timely delivery ,
hygiene etc. cannot be ignored while rating
the total process.
 Thus the firm sells good atmosphere,
convenience of customers, consistent
quality of services, etc.

16.  The services are fluctuating in nature.
 The demand of services can be abnormal,
sudden seasonal, situational & dependent.
 Therefore, while identifying the salient
features of services one cannot ignore the
nature of demand.

17.  Place
 People
 Equipment
 Communication material
 Symbols
 Price

19. By market Segment
Business Consumed
End consumer
Coaching , Taxi, Car wash, Life
insurance
Management Consulting, Machinery
Repair,
Accounting Services, Legal services
Classifications of Services
1. By Market Segment

20. By degree of
Tangibility
Highly Intangible
Highly Tangible
Car rental, Vending Machines
Psychotherapy, consultancy , legal
services.
2. By degree of Tangibility
Services Linked to
Tangible goods
Domestic appliances repair, Car
services

21. By skills of the
service Providers
Non-professional
Professional
Medical services, Legal services,
Accountancy , Tutoring
Babysitting, Caretaking, Casual Labour
, Uniformed security, Taxi.
3. By Skills of Services Providers

22. By Business
Orientation
Commercial
Non-profit
organization
Scouts Association, Charities public
sector Leisure facilities
Banks, Airlines, Tour Operators, Hotel
and Catering services
4. By Business Orientation

23. By degree of
Regulation
Non-regulated
Highly Regulated
Mass transit, Hospitals, Insurance,
Utilities
Computer time, leisure lawn care,
House painting
5. By degree of Regulation
Limited Regulated
Catering, Fast food

24. By Type of End
Users
Industrial service
Consumer service
Beauty care, Hair cutting
Machine installation, plant
maintenances
6. By Type of End Users
Business to Business
Market research, Advertising

25. Changing Lifestyle
Upward Trend in
Disposable Income
Professionalism in
Education
Sophistication in
Market
Increasing
Government
Activities
Information
Explosion
Increasing Literacy
Rate
Increasing
Specialization
Importance of
services
Importance of services

26.  Upward trend in the disposable income: in
past 10years the income of Indian consumer
is found to be moving upward.
 Increase in specialization: People want more
perfection to be reworded suitably
 Change in life cycle: Development of
corporate culture emergence of well
established services there is a drastic change
in life cycle

27.  Increasing literacy rate: due to education
mission of government of India literacy rate in
India
 Professionalism in Education: The professional
excellence would get a new priority and the
masses would tempted to professional education
 Information Explosion : invention and
innovations in the field of communication have
been found explosion in information

28. Sophistication in Market : It is natural that one
finds sophisticated in market were customers
expectations would find high
Increasing Government Activities: Expanding
government activities give mainly to that
participation of state in almost all sectors would
make ways for the development in service sector