The Nature of Services.

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Presentation transcript:

The Nature of Services

The Service Process Matrix Degree Degree of Interaction and Customization of labor Intensity Low High Service factory: Service shop: * Airlines * Hospitals Low * Trucking * Auto repair * Hotels * Other repair services * Resorts and recreation Mass service: Professional service: * Retailing * Doctors High * Wholesaling * Lawyers * Schools * Accountants * Retail aspects of * Architects commercial banking 4/20/2018 Unit I -16BA727 - Services Marketing - K.Mohan Kumar, AP/MBA

Strategic Service Classification (Nature of the Service Act) Direct Recipient of the Service Nature of the Service Act People Things People’s bodies: Physical possessions: Health care Freight transportation Passenger transportation Repair and maintenance Tangible actions Beauty salons Veterinary care Exercise clinics Janitorial services Restaurants Laundry and dry cleaning People’s minds: Intangible assets: Education Banking Intangible actions Broadcasting Legal services Information services Accounting Theaters Securities Museums Insurance 4/20/2018 Unit I -16BA727 - Services Marketing - K.Mohan Kumar, AP/MBA

Strategic Service Classification (Relationship with Customers) Type of Relationship between Service Organization and Its Customers Nature of Service Delivery “Membership” relationship No formal relationship Insurance Radio station Telephone subscription Police protection Continuous delivery Electric Utility Lighthouse of service Banking Public Highway Long-distance phone calls Restaurant Theater series tickets Pay phone Discrete transactions Transit pass Toll highway Sam’s Wholesale Club Movie theater Airline frequent flyer Public transportation 4/20/2018 Unit I -16BA727 - Services Marketing - K.Mohan Kumar, AP/MBA

Unit I -16BA727 - Services Marketing - K.Mohan Kumar, AP/MBA Video presentation on-“ Inspiring Eagle story ” https://www.youtube.com/watch?v=QQGHNr5fEeU 4/20/2018 Unit I -16BA727 - Services Marketing - K.Mohan Kumar, AP/MBA

Strategic Service Classification (Customization and Judgment) Extent to Which Service Characteristics Are Customized Extent to Which Personnel Exercise Judgment in Meeting Customer Needs High Low Surgery Preventive health programs High Taxi services Education (large classes) Gourmet restaurant Family restaurant Telephone service Public transportation Hotel services Spectator sports Low Retail banking Movie theater Cafeteria Institutional food service 4/20/2018 Unit I -16BA727 - Services Marketing - K.Mohan Kumar, AP/MBA

Strategic Service Classification (Nature of Demand and Supply) Extent of Demand Fluctuation over Time Extent to which Supply Is Constrained Wide Narrow Electricity Insurance Peak demand can Telephone Legal services usually be met Police emergency Banking without a major delay Hospital maternity unit Laundry and dry cleaning Tax preparation Fast food restaurant Peak demand regularly Passenger transportation Movie theater exceeds capacity Hotels and motels Gas station 4/20/2018 Unit I -16BA727 - Services Marketing - K.Mohan Kumar, AP/MBA

Strategic Service Classification (Method of Service Delivery) Availability of Service Outlets Nature of Interaction between Customer and Service Organization Single site Multiple site Customer travels to Theater Bus service service organization Barbershop Fast-food chain Service provider Taxi Mail delivery travels to customer Pest control service AAA emergency repairs Taxi Transaction is at Credit card company Broadcast network arm’s length Local TV station Telephone company 4/20/2018 Unit I -16BA727 - Services Marketing - K.Mohan Kumar, AP/MBA

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