1. The Nature of Services

2. 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

3. 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

4. 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

5. Unit I -16BA727 - Services Marketing - K.Mohan Kumar, AP/MBA
Activity : Video presentation on-“ Introduction to Services Marketing”
5/19/2018
Unit I -16BA727 - Services Marketing - K.Mohan Kumar, AP/MBA