Gaurav S

Supporting Facility: The physical resources that must be in

place before a service can be sold. Examples are golf course,
ski lift, hospital, airplane.
Facilitating Goods: The material consumed by the buyer or
items provided by the consumer. Examples are food items,
legal documents, golf clubs, medical history.
Information: Operations data or information that is
provided by the customer to enable efficient and
customized service. Examples are patient medical records,
seats available on a flight, customer preferences, location of
customer to dispatch a taxi.

Explicit Services: Benefits readily observable by the senses.

The essential or intrinsic features. Examples are quality of
meal, attitude of the waiter, on-time departure.
Implicit Services: Psychological benefits or extrinsic
features which the consumer may sense only vaguely.
Examples are privacy of loan office, security of a well lighted
parking lot.

Degree
Degree of Interaction and Customization
of labor Intensity
Low
High
Service Factory
Service Shop
* Airlines
* Hospitals
Low
* Trucking
* Auto repair
* Hotels
* Other repair
services
* Resorts and recreation
Mass Service

Professional

* Retailing
* Wholesaling
* Schools
* Retail banking

* Doctors
* Lawyers
* Accountants
* Architects

Service
High

On the basis of end user

On the basis of degree of tangibility
Degree of customer contact
Degree of expertise
Profit orientation

Business services
Consumer services
Govt.

Purely intangible
Services with tangible inputs
Products with service inputs

Low customer contact

High Customer contact

High
Moderate
Low

For profit
Not for profit

Goods are tangible whereas services are

intangible
Customers participate in many service
processes, activities and transactions
The demand for services is more difficult to
predict than the demand for goods
Services can not be stored as physical
inventory
Service management skills are paramount to
a successful service encounter

Service facilities typically need to be in close

proximity to the customer
Patents do not protect services

Salt

Soft Drinks
Detergents
Automobiles
CosmeticsFast-food
Outlets

Tangible
Dominant

Fast-food
Outlets

Intangible
Dominant

Advertising
Agencies
Airlines
Investment
Management
Consulting

Teaching

Intangibility
Perishability
Heterogeneity/ non-standardization/
variability
inseparability

How to address the unique

characteristics of the service
industry

These are the ways in which intangibility can

be overcome
Visualization
Association
Physical Representation
Documentation
Facts and figures

Beautiful looking internet sites

Beautiful building and landscapes at
institutions
Well dressed staff at Hotels/hospitals
Big offices of real estate brokers

Over marketing
Managing Demand ( demand states)
Managing Supply (goods, systems and
processes, people)

Differential pricing at Cinema theaters

Peak & off peak offers at Holiday resorts
Happy hours at restaurant

Training of internal customers

Recruitment and selection of internal
customers
Training of external customers
automation

Automation (ATMs for banking services)

Training is critical (as most service businesses
are people intensive)

Training of internal customers

Video conferencing
Robotics

All business organizations are functionally

integrated.
Hence functions overlap and interact
Service operations and service marketing are
intensely affected by each other as the
production and consumption of services is
simultaneous

 All elements within the control of the firm that

communicate the firms capabilities and image

to customers or that influence customer
satisfaction with the firms product and
services:

Product
Price
Place
Promotion

Product
Price
Place
Promotion
People
All human actors who play a part in service delivery and thus influence the

buyers perceptions: namely, the firms personnel, the customer, and other
customers in the service environment.

Physical Evidence
The environment in which the service is delivered and where the firm and

customer interact, and any tangible components that facilitate performance or

communication of the service.

Process
The actual procedures, mechanisms, and flow of activities by which the service

is deliveredthe service delivery and operating systems.

 Service Culture

The Critical Importance of Service

Employees
Boundary-Spanning Roles
Strategies for Delivering Service
Quality Through People
Customer-Oriented Service
Delivery
Dr. Swatantra Kumar, SSVGI, Bareilly

They are the service.

They are the organization in the customers

eyes.

They are the brand.

They are marketers.

Their importance is evident in:

the services marketing mix (people)
the service-profit chain
the services triangle

Person versus role

Organization versus client

Client versus client