The Nature of Services The Service Process

The Nature of Services

The Service Process Matrix Degree of Interaction and Customization of labor Intensity Low High 3/19/2018 Service factory: * Airlines * Trucking * Hotels * Resorts and recreation Service shop: * Hospitals * Auto repair * Other repair services Mass service: * Retailing * Wholesaling * Schools * Retail aspects of commercial banking Professional service: * Doctors * Lawyers * Accountants * Architects Unit I -16 BA 727 - Services Marketing - K. Mohan Kumar, AP/MBA 2

Strategic Service Classification (Nature of the Service Act) Direct Recipient of the Service Nature of the Service Act People’s bodies: Things Physical possessions: Health care Passenger transportation Tangible actions Freight transportation Repair and maintenance Beauty salons Exercise clinics Restaurants Veterinary care Janitorial services Laundry and dry cleaning People’s minds: Intangible assets: Education Intangible actions 3/19/2018 Banking Broadcasting Information services Theaters Museums Legal services Accounting Securities Insurance Unit I -16 BA 727 - Services Marketing - K. Mohan Kumar, AP/MBA 3

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 Telephone subscription Continuous delivery of service Radio station Police protection Electric Utility Lighthouse Banking Public Highway Long-distance phone calls Theater series tickets Discrete transactions 3/19/2018 Restaurant Pay phone Transit pass Sam’s Wholesale Club Airline frequent flyer Toll highway Movie theater Public transportation Unit I -16 BA 727 - Services Marketing - K. Mohan Kumar, AP/MBA 4

Video presentation on-“ Inspiring Eagle story ” n https: //www. youtube. com/watch? v=QQ GHNr 5 f. Ee. U n 3/19/2018 Unit I -16 BA 727 - Services Marketing - K. Mohan Kumar, AP/MBA 5

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 High Preventive health programs 3/19/2018 Education (large classes) Family restaurant Telephone service Hotel services Low Taxi services Gourmet restaurant Public transportation Spectator sports Retail banking Cafeteria Movie theater Institutional food service Unit I -16 BA 727 - Services Marketing - K. Mohan Kumar, AP/MBA 6

Strategic Service Classification (Nature of Demand Supply) Extent of Demand Fluctuation over Time Extent to which Supply Is Constrained Wide Narrow Electricity Peak demand can usually be met without a major delay Insurance Telephone Legal services 3/19/2018 Banking Hospital maternity unit Laundry and dry cleaning Tax preparation Peak demand regularly exceeds capacity Police emergency Fast food restaurant Passenger transportation Movie theater Hotels and motels Gas station Unit I -16 BA 727 - Services Marketing - K. Mohan Kumar, AP/MBA 7

Strategic Service Classification (Method of Service Delivery) Availability of Service Outlets Nature of Interaction between Customer and Service Organization Customer travels to service organization Service provider travels to customer Transaction is at arm’s length 3/19/2018 Single site Multiple site Theater Bus service Barbershop Fast-food chain Taxi Mail delivery Pest control service Taxi AAA emergency repairs Credit card company Broadcast network Local TV station Telephone company Unit I -16 BA 727 - Services Marketing - K. Mohan Kumar, AP/MBA 8