The document discusses the nature and characteristics of services. It defines the service industry as including the governmental, private nonprofit, business, and manufacturing sectors. Services are categorized from pure tangible goods with no services to pure services that are simply intangible. Key characteristics of services are that they are intangible, inseparable from their production and consumption, can vary between providers and over time, and cannot be inventoried. The document provides examples to illustrate different categories of services and concludes with a recap of services sectors, categories, and characteristics.

1. 1. What is the nature of services ?
Designing and managing services

2. Service industry include
the following sectors
 Governmental Sector
 Private nonprofit sector
 Business sector
 Manufacturing sector

3. Service Mix Categories
1. Pure tangible good : No Services
Like simple products

4. 2. Tangible good with accompanying services
Like automobiles and their servicing

5. 3. Hybrid: equal parts service and goods
Like food of restaurant

6. 4. Major service with accompanying
minor goods and services
Like airplane with services

7. 5. Pure Service (Simply intangible)
Like massage, etc.

8. Characteristics
•Intangibility
•Inseparability
•Variability
•Perishability

9. Characteristics
•Inseparability
•Variability
•Perishability
Cannot be touched,
seen, tasted, heard, or
smelled before
purchase

10. Characteristics
•Intangibility
•Variability
•Perishability
Services are produced
and consumed at the
same time

11. Characteristics
•Intangibility
•Inseparability
•Perishability
Service providers vary
with respect to
attitudes, skills, mood,
etc. Even the same
provider may give
different service on a
different day.

12. Characteristics
•Intangibility
•Inseparability
•Variability
Services can not be
inventoried or otherwise
stored

14. Recap
• Services include various sectors
• We have discussed different categories to the services
• We have seen the characteristics of Services

15. References
• http://portadelmar.com/wp-content/uploads/2014/02/head-massage.jpg
• http://images.vcpost.com/data/images/full/264/a-man-carries-a-tray-of-food.jpg
• http://4.bp.blogspot.com/A5zhRWAa5lw/TQaiTDLOuHI/AAAAAAAAAAQ.jpg

16. Disclaimer
These slides were created by Piyush Panchal, IIT
Kanpur, during a Marketing internship by Prof.
Sameer Mathur, IIM Lucknow