Ch. 12 : Designing and Managing Services Dr. Sandeep L.

Makwana
A Service is any act or performance one party
can offer to another that is essentially
intangible and does not result in the ownership
of anything.

Ch. 12 : Designing and Managing Services Dr. Sandeep L. Makwana

 Degree of Involvement of Customer

Tangibility of Services

Requirement of Skills and Expertise

Business Orientation of Service Provider

Type of End User

Ch. 12 : Designing and Managing Services Dr. Sandeep L. Makwana

 Degree of Involvement of Customer

People Processing

To avail the services, the physical presence of customer is required.

Ch. 12 : Designing and Managing Services Dr. Sandeep L. Makwana

 Degree of Involvement of Customer

Possession Processing

To avail the services, the customer is required to hand-over the product to

service provider..
Ch. 12 : Designing and Managing Services Dr. Sandeep L. Makwana
 Degree of Involvement of Customer

Mental Stimulus Processing

To avail the services, depending on nature of service the physical presence

is optional, but mental presence is compulsory.
Ch. 12 : Designing and Managing Services Dr. Sandeep L. Makwana
 Degree of Involvement of Customer

Information Processing

To avail the services, the customer is required to have basic skills like
reading and interpreting the information.
Ch. 12 : Designing and Managing Services Dr. Sandeep L. Makwana
 Tangibility of Services

Highly Tangible

To avail the services, the customer is required to use equipments

Ch. 12 : Designing and Managing Services Dr. Sandeep L. Makwana

 Tangibility of Services

Highly Intangible

To avail the services, the customer can only feel the benefits;
even without using any tangible tools.
Ch. 12 : Designing and Managing Services Dr. Sandeep L. Makwana
 Tangibility of Services

Services linked to Goods

To sell the goods, seller is required to render some services;

without which goods can not be sold.
Ch. 12 : Designing and Managing Services Dr. Sandeep L. Makwana
 Tangibility of Services

Goods linked to Services

To render the services, service provider needs to offer some goods..

Ch. 12 : Designing and Managing Services Dr. Sandeep L. Makwana

 Requirement of Skills and Expertise

Professional Services

To render the services, professional qualification in a specific activity is

required.
Ch. 12 : Designing and Managing Services Dr. Sandeep L. Makwana
 Requirement of Skills and Expertise

Non-professional Services

To render the services, No professional qualification in a specific activity is

required.
Ch. 12 : Designing and Managing Services Dr. Sandeep L. Makwana
 Business Orientation of Service Provider

Not For Profit Organization

Commercial Organization

Ch. 12 : Designing and Managing Services Dr. Sandeep L. Makwana

 Type of End User

B2B

B2C

Ch. 12 : Designing and Managing Services Dr. Sandeep L. Makwana

 Intangibility

Unlike physical products, services can’t be seen, tasted, felt, heard or

smelled before they are bought.

Unless the service provider show the evidence / proof for the quality of
service; the customer can’t believe / trust.

Ch. 12 : Designing and Managing Services Dr. Sandeep L. Makwana

 Inseparability

Production and consumption of services occur simultaneously.

Customer who wants to avail the service, needs to remain present .

Ch. 12 : Designing and Managing Services Dr. Sandeep L. Makwana

 Heterogeneity

Services are rendered by people; who can’t act / perform in a unique

way all the time.

The quality of service rendered by a person may be different from time

to time.

Ch. 12 : Designing and Managing Services Dr. Sandeep L. Makwana

 Perishability

Services can’t be inventoried for future use.

Service provider can’t produce and store the service well in advance.
Once the services are produced and could not be availed by customers,
it will be a loss of chance.

Ch. 12 : Designing and Managing Services Dr. Sandeep L. Makwana

Ch. 12 : Designing and Managing Services Dr. Sandeep L. Makwana