The Nature of Services.

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Presentation transcript:

The Nature of Services

Four Categories of Services Employing Different Underlying Processes (Fig. 1.5) (Lovelock) What is the Nature of the Service Act? Who or What is the Direct Recipient of the Service? DIRECTED AT PEOPLE DIRECTED AT POSSESSIONS People Processing TANGIBLE ACTS Possession Processing e.g., airlines, hospitals, haircutting, restaurants hotels, fitness centers e.g., freight, repair, cleaning, landscaping, retailing, recycling INTANGIBLE ACTS Mental Stimulus Processing Information Processing (directed at intangible assets) e.g., broadcasting, consulting, education, psychotherapy e.g., accounting, banking, insurance, legal, research 5/19/2018 Unit I -16BA727 - Services Marketing - K.Mohan Kumar, AP/MBA

Landscape Maintenance Value Added by Physical, Intangible Elements Helps Distinguish Goods and Services (Fig 1.6) Physical Elements High Salt Detergents CD Player Wine Golf Clubs New Car Tailored clothing Plumbing Repair Fast-Food Restaurant Health Club Airline Flight Landscape Maintenance Consulting Life Insurance Internet Banking Low Intangible Elements High Source; Adapted from Lynn Shostack Slide © 2007 by Christopher Lovelock and Jochen Wirtz Services Marketing 6/E Chapter 1 - 28

Tangibility Spectrum Figure 1-1 (Bitner, Zeithaml) Tangible Dominant Intangible Salt Soft Drinks Detergents Automobiles Cosmetics Advertising Agencies Airlines Investment Management Consulting Teaching Fast-food Outlets  5/19/2018 Unit I -16BA727 - Services Marketing - K.Mohan Kumar, AP/MBA

Unit I -16BA727 - Services Marketing - K.Mohan Kumar, AP/MBA Activity : Video presentation on-“ Introduction to Services Marketing” https://www.youtube.com/watch?v=1zYsQSJvbog 5/19/2018 Unit I -16BA727 - Services Marketing - K.Mohan Kumar, AP/MBA

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