Amity Business School

Amity Business School
MBA Class of 2010, Semester III

Classification of Services
Prof. P K Bansal

‡ Process is directed at different ends depending upon the nature of service. ‡ Service process can be manual or mechanised or involve both.Service Process A Strategic Insight Amity Business School ‡ A service is essentially a process and not a physical product. . is more concerned with operations happening in front of him unless when services fail to conform to expectations. ‡ A customer because of his physical presence in the system or factory. involving interplay of people and equipments. ‡ Some services process people and some may process objects. ‡ Part of the service organisation that has direct control and responsibility of the service processes is called service operation system.

What is processed? Object or a Person 2. This leads to an important classification on the basis of two important dimensions: 1. It also decides. How is it processed? What is the Nature of Process? Tangible or Intangible actions ‡ . the importance of the duration a customer¶s physical presence is required in a service system.Amity Business School ‡ Visible portion of overall service depends on the nature of service process.

( Information Processing ) y Banking y Legal Services y Insurance .Strategic Classification eo le Se ices i ecte t eo le¶s o ies ( eo le ocessin ) hin s Amity Business School n i le Actions Services directed at goods and other physical possessions ( Possession Processing ) y Freight Transportation y Repair / Maintenance y Dry Cleaning y y y y Health Care Beauty Salons Restaurants Public Transportation nt n i le Actions Services directed at people¶s minds. ( Mental Stimulus Processing ) y Education y Theaters y Information Services Services directed at intangible assets.

Customers must physically enter the system. 3. service provider goes to customer with necessary tools.People Processing Amity Business School 1. ‡ ‡ Level of involvement can vary. Identify non-financial costs. Sometimes. and pain etc. 2. fear. mental and physical effort. time. People must be prepared to spend time actively cooperating with the service operation. Managers must think about processes / outputs in terms of what happens to customers or what benefits are created. ‡ .

explaining the problem or paying the bill only. whether. installing software or repairing car etc. ‡ People are less physically involved and usually. often limited to requesting the service. no real need for them to enter the service. . ‡ The output in each instance.Possession Processing Amity Business School ‡ Working to tight deadlines to restore customer¶s possessions to good working order. should be a satisfactory solution to a stated problem.

strong ethical standards and careful oversight are required. which can be packed and sold like any physical product. Video s. CD s. and a potential for manipulations. Hence.Mental Stimulus Processing Amity Business School ‡ Services that interact with people s mind. ‡ Recipients should spend time but not necessarily be physically present in a service factory. just mentally in communication with information being presented. ‡ Information based content can be converted to digital bits. . ‡ Anything touching people¶s mind has power to shape attitudes and influence behaviour. recorded or transformed into manufactured products viz. ‡ Customers are in a position of dependency.

‡ Customer / Supplier learn each other¶s needs.Information Processing Amity Business School ‡ Most intangible form of service output. capabilities and personalities by personal meetings. . ‡ Customer involvement determined more by tradition or personal desire to meet face to face and not by the needs of the operational process. however this relationship can also be build / sustained on trust or telephonic contact.