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Services Goods
Intangible Tangible
Heterogeneous Homogenous
Produced in Buyer Seller interaction Produced in Iactory
Production, distribution & consumption takes
place simultaneously
All three are separate & independent
Consumers participate in production Consumers don`t generally participate
Cannot be stored Can be stored
TransIer oI ownership cannot take place TransIer oI ownership does take place
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new emerglng servlces
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Classification by ndustry
Classification by Target Effect
Skill level of service provider (Professional/ Nonprofessional)
Labor intensiveness (People-based/Equipment-based)
Degree of customer contact (High / Low)
Goal of the service provider (Profit /Nonprofit)
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a. Entertainment industry
b. Education
c. Telecommunications
d. Finance & nsurance
e. Transportation
f. Public utilities
g. Government services
h. Health
i. Hospitability ndustry
j. Business services
k. Telecommunications
l. Trading
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Based on Degree Of Customer nvolvement: ( Lovelock)
1. PeopIe Processing: Services aimed at physical care e.g.
Healthcare, clinics, restaurant, hospitals, hair stylists, fitness centers
2. MentaI StimuIus Processing: Services aimed at mind of customer
e.g. Education, information, entertainment, consulting, psychotherapy
3. Possession Processing: Services aimed at physical possession &
tangible assets e.g. repair & maintenance, laundry, repair services,
landscaping, house cleaning services
4. Information Processing : Services for intangible assets e.g.
Banking, legal consultation, brokerage, financial services.
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