How do we define and classify services and how do

they differ from goods?

Shubham GoswamiJadavpur University

What is a service?

Any act or performance one party can offer to another party that is essentially intangible and does not result in the ownership of anything

Services are

Government Sector

Private Non-profit Sector

Business Sector

The accountant in a manufacturing firm and the salesperson in a retail store are service providers

What are the categories of Service Mix ?

Pure tangible good

Tangible good with accompanying services

Hybrid

Major service with minor accompanying goods and services

Pure service

What are some distinctive characteristics of services?

Intangibility

A master at

“tangibilizing the intangible”

Inseparability

A haircut cannot be stored or produced without the barber

Variability

The quality of the service provided may vary. Thus customer satisfaction is also variable.

Perishability

Services may be perishable in case of fluctuating demand

Summary

Service-Mix categories

• Pure tangible good• Tangible good with

accompanying services• Hybrid• Major services with

accompanying goods and services

Distinctive characteristics of services

• Intangibility• Inseparability• Variability• Perishability

Disclaimer

Created byShubham Goswami, Jadavpur University, during a marketing internship byProf. Sameer Mathur, IIM Lucknow(see www.IIMInternship.com)