Understanding services

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Presentation Description

Characteristics of services, classification of services

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By: sai.sumanth (9 month(s) ago)

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Presentation Transcript

UNDERSTANDING SERVICES : 

UNDERSTANDING SERVICES PRIYANKA SANGOLGI

CONTENT : 

CONTENT Factors Influencing The Growth of the service sector Characteristic of services Generic differences between goods and services Classification of services Developing frame work for analyzing services Myths about services

Defining the Essence of a Service : 

Defining the Essence of a Service An act or performance offered by one party to another An economic activity that does not result in ownership A process that creates benefits by facilitating a desired change in: customers themselves physical possessions intangible assets

Changing Structure of Employment as Economic Development Evolves : 

Changing Structure of Employment as Economic Development Evolves Time, per Capita Income Share of Employment Industry Services Agriculture

Slide 5: 

Dev Of Economy Agriculture Economy Services GDP – 56 % Information technology Service – element of tangibility , sometimes involve use of intangible goods , does not result on ownership

Examples of Service Industries : 

Examples of Service Industries Health Care hospital, medical practice, dentistry, eye care Professional Services accounting, legal, architectural Financial Services banking, investment advising, insurance Hospitality restaurant, hotel/motel, bed & breakfast, ski resort, rafting Travel airlines, travel agencies, theme park Others: hair styling, pest control, plumbing, lawn maintenance, counseling services, health club

Factors Influencing Growth Of Service Industry : 

Factors Influencing Growth Of Service Industry Demographic changes Social changes Economic changes Technology Political and legal Policy changes

TANGIBLITY SPECTRUM : 

TANGIBLITY SPECTRUM Tangible Good Tangible good with accompanying service Major service accompanying minor goods Pure service

Slide 10: 

Fast food restaurant Plumbing repair Office cleaning Health club Airline flight Retail banking Insurance Weather forecast Salt Soft drinks CD Player Golf clubs New car Tailored clothing Furniture rental Lo Hi Tangible Elements Intangible Elements

CHARACTERISTICS OF SERVICE : 

CHARACTERISTICS OF SERVICE Intangibility Inseparability Heterogeneity Perish ability

1. Intangible : 

1. Intangible Difficult to measure , demonstrate, standardise Difficult to convince Depends on perception Needs physical evidence

2. INCONSISTENCY : 

2. INCONSISTENCY Mood, Bad experience, over worked, skill sets, knowledge may have an impact Variance– branch, person, time , place, occasion , situation Eg: call center, bank, college

3. Perishability : 

3. Perishability Opportunity lost is not recoverable Demand – supply shall balance

4. Inseparable : 

4. Inseparable Operations Delivery Same time, same spot , no stock, no transport

GENERIC DIFFERENCES BETWEEN GOODS AND SERVICES : 

GENERIC DIFFERENCES BETWEEN GOODS AND SERVICES Nature of product Problem in QC Involvement of customer in production and delivery Absence of inventories Structure and nature of distribution channel Prompt service Evaluating service quality

CLASSIFICATION OF SERVICES : 

CLASSIFICATION OF SERVICES Degree of involvement People processing Possession processing Mental stimulus processing Information processing

Slide 18: 

People Processing Possession Processing Mental Stimulus Processing Information Processing (directed at intangible assets) e.g., airlines, hospitals, haircutting, restaurants hotels, fitness centers e.g., freight, repair, cleaning, landscaping, retailing, recycling e.g., broadcasting, consulting, education, psychotherapy e.g., accounting, banking, insurance, legal, research TANGIBLE ACTS INTANGIBLE ACTS DIRECTED AT PEOPLE DIRECTED AT POSSESSIONS Who or What is the Direct Recipient of the Service?

Slide 19: 

Service tangibility Highly tangible Service linked to tangible goods Tangible goods linked to service Highly intangible Business orientation of service provider Non profit Commercial Type of end user Consumer services B2B services Industrial services

DEVELOPING FRAMEWORK FOR ANALYSING SERVICES : 

DEVELOPING FRAMEWORK FOR ANALYSING SERVICES Type of service Nature of relation Service delivered Type of demand and supply customize service and exercise judgment

MYTHS ABOUT SERVICES : 

MYTHS ABOUT SERVICES Necessary evil Labor intensive and less productive Less revenue Growth linked Mktg service is not different Growth : eliminates jobs in manufacturing sector

Slide 22: 

THANK YOU