1. Service Defined Pure Goods -----  Mixture of Goods and Services -----  Pure Service

2. Service Defined “A service is an activity with some elements of intangibility associated with it, which involves some interactions with customers or with property in their possession and does not result in a transfer of ownership. A change in condition may occur and production of the services may or may not be closely associated with a physical product.”

3. Service Defined It is DEEDS, ACTS or PERFORMANCES And NOT Only objects, devices or things.

4. Service Characteristics Giving rise to Lack of protection from patent Difficulty in displaying and communicating Difficulty in defining Lack of perception by sense organs Difficulty in pricing lack of ability to be stored INTANGIBILITY:

5. Tangibility Spectrum Salt Soft drinks Detergents Automobiles Cosmetics Fast food outlets Ad Agency Airlines Investme nt Manage ment Consulting Teaching More tangible More intangible

6. Service Characteristics Giving rise to Physical connection of the service provider to the service Involvement of customer in the production process Exposure to other customers Special challenges in mass production of services INSEPERABILITY:

7. Service Characteristics Giving rise to Non standardisation of quality HETEROGENEITY:

8. Service Characteristics Giving rise to Higher demand than maximum available supply Higher demand than optimum supply level Lower demand than optimum supply level. PERISHABILITY:

9. The Differences with Goods Customer does not obtain ownership of services Service products are intangible performances Greater involvement of customer in production Other people too may form part of the product More variability in operational inputs and outputs Many services are difficult for customers to evaluate No inventory (before or after production) It is a real time activity Delivery system may involve electronic and physical channels.

10. Service as a Process Input -------------  Output People Processing Material Processing Possession Processing Information Processing

11. The Drama of Service Delivery SERVICE DELIVERY SYSTEM SERVICE OPERATION SYSTEM Line of visibility Secondary Interaction FRONT-STAGE B A C K- S T A G E

12. Service as a System Physical support Contact Personnel Technic -al Core Service A Service B Customer A Customer B SERVICE DELIVERY SYSTEM SERVICE OPERATION SYSTEM Line of visibility Secondary Interaction