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Chapter 12:Designing and managing
How do we define and classify services, and how do they differ from goods?
By:Kartik SinglaIndian Institute of Technology(BHU), Varanasi
A service is any act of performance one party can
offer to another
that is intangible and does not result in the ownership of
anything.
Government sector services (Police)
Private Nonprofit sector services (colleges)
Business sector services (companies)
Manufacturing sector services (accountants)
Services can be classified on the basis of:
1.
Equipment based
People based
Manual or automatic
2. Different processes of delivery
Different type of restaurant services
Presence or absence of
client3.
Needs4.
Personal need
Business need
Objectives5.
Profit
Non profit
Ownership6.
Private
Public
Differences between products and services
Physical products can be touched,
ButServices are
Intangible i.e. they cannot be seen, tasted or felt before they are bought.”
Physical products are manufactured and consumed later,
ButServices are
Inseparable i.e. they are produced and consumed simultaneously.
Physical products
are of the same type
if they belong to the
same category,
ButServices have high
Variability i.e. their quality depends highly on the provider.
Physical products can be stored,
ButServices are
Perishable i.e. they need to be provided at the right place and time to right people.