Introduction to Service: Definition

Simple • Services are deeds, processes, and

definition performances

• Services include all economic activities whose output is not a

Broad physical product or construction, is generally consumed at the
time it is produced, and provides added value in forms (such as
definition convenience, amusement, timeliness, comfort, or health) that
are essentially intangible concerns of its first purchaser.

This broad definition of services implies that

intangibility is a key determinant of whether and
offering is a service
FIVE CHARACTERISTICS
OF SERVICE IN THE
HOSPITALITY INDUSTRY:
OVERVIEW

2
SERVICE CHARACTERISTICS
1.
Intangibility of
services

2.
5.
Inseparability
Lack of of production
Ownership and
Characteristic
consumption
of
Services

4. 3.
Perishability Heterogeneity
 “
1. INTANGIBILITY OF
SERVICES

4
INTANGIBLE
§Refer as:
• Unlike physical products, services cannot be stored on a shelf,
touched, tasted or tried on for size and physical objects (goods)
accompany services.
• The total lack or perception of a service’s characteristics before
and (often) after it is performed.

§Meaning that:
• The services in the hospitality industry are mostly intangible –the
guest cannot “test-drive” a night’s stay or “taste the steak”
before dining.
INTANGIBLE
§For example:
• Service offered in a restaurant involves numerous combination
of intangible activities (e.g., the purchase of supplies, the
preparation of meals, and the serving of those meals). The
tangible components (e.g., the building, the interior décor, the
kitchen equipment, and the food items) are necessary for
service, and intangible service activities make up the key
product offering.
 INTANGIBLE: IMPLICATIONS
§ Situation:
Customer never sure what they are buying or what they will get, can’t
possess. Service provider can makes promises, sets expectations, but
not always sure if can deliver. Products may include uncontrollable
items like the weather. Customer who purchases a service may go
away empty-handed, but they do not go away empty-headed, they
have memories that can be shared with others.
§ To reduce uncertainty caused by service intangibility, customers
look for tangible evidence that will provide information and
confidence about the service. For example:
• Tangibles provide signals as to the quality of the intangible service
• Condition of the grounds and overall cleanliness provide clues as to how well
a restaurant is run.
 “
2. INSEPARABILITY OF
PRODUCTION AND
CONSUMPTION
INSEPARABILITY OF PRODUCTION AND CONSUMPTION

q Also known as simultaneity; characterized by

simultaneous consumption – means that the service is
first sold, produced then consumed at the same time.
q Service provider and customer must be present at the
same time to experience the service which cannot be
separated.
q They cannot return the service if they are dissatisfied.
q Employees have to interact with customers during the
production of the service; must produce on demand.
q For example: A meal in a restaurant is consumed immediately after it has
been prepared as part of the process of the whole event, meaning that
the consumer and producer are in close proximity.
INSEPARABILITY OF PRODUCTION AND CONSUMPTION

“The servuction process” –

• The customers are part of the factory = means

combination of the terms service and production; to
describe the part of the service organization’s
physical environment that is visible to customers,
contact personnel, other customers and very
importantly-the customer in person.
©2006 Pearson Education, Inc. Adopted from Marketing for Hospitality and Tourism, 4th edition
Upper Saddle River, NJ 07458 Kotler, Bowen, and Makens
©2006 Pearson Education, Inc. Adopted from Marketing for Hospitality and Tourism, 4th edition
Upper Saddle River, NJ 07458 Kotler, Bowen, and Makens
©2006 Pearson Education, Inc. Adopted from Marketing for Hospitality and Tourism, 4th edition
Upper Saddle River, NJ 07458 Kotler, Bowen, and Makens
INSEPARABILITY OF PRODUCTION AND CONSUMPTION:
IMPLICATIONS
q Service inseparability also means that customers are
part of the product.
q For example: having chosen a restaurant because it is quiet and
romantic, a couple will be disappointed if a group of loud,
boisterous conventioneers is seated in the same room.

Solution: Managers must manage their customers, so

they do not create dissatisfaction for others.
INSEPARABILITY OF PRODUCTION AND CONSUMPTION:
IMPLICATIONS

q Customers and employees must understand the service

delivery system because they are coproducing the service.
This means hospitality industry have to train customers just
as they train their employees.
q For examples:
• Customers must understand the menu items in a restaurant so that
they get the dish they expect
• Hotel customers must know how to use the phone system and express
checkout on the television

Solution: Inseparability requires hospitality managers to

educate both their customers and employees
INSEPARABILITY OF PRODUCTION AND CONSUMPTION:
IMPLICATION

q Customer co-production also means organizations must

select, hire, and train customers.
q The benefits provided to the guest by becoming an
“employee” include increased value, customization, and
reduced waiting time.
• Fast-food chains train customers to get their own drinks
• Hotels, restaurants, airlines and rental car companies train customers to use
the electronic check-in and the internet to get information and to make
reservations.

Solution: Inseparability requires hospitality managers to

educate their customers and manage both their
employees .