What is Service?

Intangibility of Service
Customer’s View
Non - Inventoriability of Services
Customer Involvement
Controlled Flexibility
 Service Matrix and Implications for
Operations Policy.
Tangible actions to people’s body (ex. Hair cutting)
Tangible actions to physical goods (ex. Laundry , air
freight)
Intangible actions directed at people’s minds (ex.
Training , education)
Intangible actions directed at people’s intangible
assets (ex banking , legal service)
 Directed at People’s Directed at Goods
Bodies
•Health Care •Freight Transportation
•Passenger Transportation •Janitorial Service
Tangible •Beauty Salons •Veterinary Care
Actions

Directed at People’s Minds Directed at Tangible Assets

•Education •Banking
Intangible •Broadcasting •Legal Services
Actions •Theatres •Accounting

One Method of Classification of Services

Service Leadership and Inverted Hierarchical
Pyramid

External Customer

Frontline Employees
Manager

Service Manager

Vice President

Senior Vice President

C.E.O
 Capacity Management
One of the most Important Tasks faced by the Service
Manager
Demand Fluctuations are present
Services are not Inventoriable
The Links Between Customer , Service Strategy , Service Providers
and The Service System

Service Strategy

Customer

System People

The Service Triangle