1How do we define and classify
services, and how do they differ
from goods?
A service is any act or performance one party can offer to another that is
essentially intangibleand does not result in the ownership
of anything.
Its production may or may not be tied to a physical
product.
It’s growing fast, REALLY FAST!!!!
EXAMPLEs
Government Sector(Public Non-Profit)
EXAMPLEs
Tourism Industry(Public/Private Profit)
EXAMPLEs Educational Institutions
(Public/Private Non-Profit)
Hospitality Industry
EXAMPLEs
Classification of
Services
People-based Equipment-based
1
OR
Based on ways to deliver 2
Client’s Presence Client’s Absence3OR
Personal Needs Business Needs4
OR
Profit Non-Profits5
OR
PrivatelyOwned
PubliclyOwned
6OR
How are they
different from
goods?
1. Intangible
Services can’t be touched, seen or felt before they are bought
Physical products are tangible
Inseparable2.Physical Products are
manufactured and consumed later
Services are manufactured and consumed
instantaneously
Variability3.
There’s very high number of variability in quality of
services
Not much variability to see in Physical
Products(similar products)
Car? Train? Plane? Boat? Horse?
4. PerishablePhysical Products may or may not
perish instantaneously
Services need to be delivered at right place at right time to right people
Credits• http://www.starlinghotelmanagement.com/images/image1.jpg
• http://i.ytimg.com/vi/_18M52mZfYQ/maxresdefault.jpg
• http://i.ytimg.com/vi/QaqpoeVgr8U/maxresdefault.jpg
• http://www.thehindubusinessline.com/multimedia/dynamic/01164/BL03_PANI_1164089f.jpg
• http://thenextweb.com/wp-content/blogs.dir/1/files/2013/10/projected-sales-growth.jpg
• http://globalpatriot.com/wp-content/uploads/2009/06/Government-Services-e1263015360639.jpg
• https://papercomsols.files.wordpress.com/2013/08/graduation_2010_11.jpg
• https://www.matchdeck.com/uploads/image/asset/10629/large_hospitality600x300.jpg
• http://thumbs.dreamstime.com/z/pizza-delivery-man-7741877.jpg
• http://foundry-wp.com/wp-content/uploads/2012/06/IMG_0050_small.jpg
• http://www.adweek.com/files/imagecache/node-detail/news_article/kayak.jpg
• http://im.rediff.com/money/2013/dec/19sbi1.jpg
• http://s3.amazonaws.com/brandrepup/service_page_images/20686/original/11.jpg?1427129983
• http://s3.amazonaws.com/rapgenius/filepicker%2FzBZhEi9CQIGfFXNrAbBj_touch.jpg
• http://cdn.iag.me/assets/thank-you-540x358.jpg
DISCLAIMER
•Created by ANURAG JAIN, NIT ALLAHABAD, during an internship by Prof. Sameer Mathur, IIM Lucknow.
• www.IIMInternship.com