1. The Nature of Services

2. 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
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Unit I -16BA727 - Services Marketing - K.Mohan Kumar, AP/MBA

3. 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

4. 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
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Unit I -16BA727 - Services Marketing - K.Mohan Kumar, AP/MBA

5. Unit I -16BA727 - Services Marketing - K.Mohan Kumar, AP/MBA
Video presentation on-“ Inspiring Eagle story ”
4/20/2018
Unit I -16BA727 - Services Marketing - K.Mohan Kumar, AP/MBA

6. 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

7. 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

8. 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