Professional Documents
Culture Documents
M1L1
M1L1
Content
1.1 1.2 1.3 1.4 1.5 1.6 1.7 1.8
NPTEL IIT Kharagpur Page2
Introduction Keywords What is a Service? Difference between Product and Service What are the different types of services? Concluding Remarks Questions Answers
1.1 Introduction
In this lesson we will learn about the following topics: 1. 2. 3. Whatisaservice? Whatisthedifferencebetweenproductandservice? Whatarethedifferenttypesofservices?
1.2 Keywords
Service,continuum
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Although software has been characterised as an intangible product (ISO 9000: 2000) software (information related) businesses like information technology services, architectural service, advertising service, etc. have been traditionally categorized as service businesses. All product forms including hardware, software, processed materials and services finally deliver intangible benefits to customers and are used in the service of people. For instance, a photocopier machine is used in providing photocopying services. We visit restaurants to have food, yet, we say that restaurants provide a service because the restaurant undertakes all activities to produce the food and help us consume the food. So, the restaurant provides both goods and services. In 1992, Professor Mary Jo Bitner wrote that products and services lie on a product-service continuum as illustrated in Figure 1.1. While pure products lie at the tangible end, pure services lie at the intangible end. Marketers have to focus on the tangible characteristics of products to meet the need of their customers. On the other hand service marketers have to focus more on the consumers as consumers become part and parcel of the service delivery. School
HIGHCUSTOMER INVOLVEMENT
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TableError!Notextofspecifiedstyleindocument.1ClassificationofServicesbasedonMaxNeefsFundamentalHumanNeeds Being Need (qualities) (things) (actions) (settings) Feeding,Healthcare, Retailand Supplyservices socialsecurity, healthsystems, work cooperate, plan,takecare of,help share,takecare of,makelove, express emotions Housing,Clothing, Security,Safety, Maintenanceand Insuranceservices Friendship,Dating, MarriageandGifting services Having Doing Interacting TypesofServices
subsistence
feed,clothe, rest,work
livingenvironment, socialsetting
protection
care,adaptability, autonomy
socialenvironment, dwelling
affection
respect,senseof humour, generosity, sensuality criticalcapacity, curiosity,intuition receptiveness, dedication,sense ofhumour imagination, tranquillity, spontaneity imagination, boldness, inventiveness, curiosity senseofbelonging, selfesteem, consistency
Understand ing
analyse,study, literature,teachers, meditate, policies,educational investigate responsibilities, duties,work,rights cooperate, dissent,express opinions daydream, remember, relax,havefun
Education,Investigation andMeditationservices
participation
associations,parties, Trade,Conference, churches, Communicationand neighbourhoods Travelservices landscapes,intimate spaces,placestobe alone spacesfor expression, workshops, audiences placesonebelongs to,everydaysettings
leisure
games,parties, peaceofmind
Entertainmentservices
creation
invent,build, abilities,skills,work, design,work, techniques compose, interpret language,religions, work,customs, values,norms gettoknow oneself,grow, commitoneself
Selfservice
identity
Club,Association, Prayerservices
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freedom autonomy,passion, selfesteem,open equalrights mindedness dissent,choose, runrisks, develop awareness anywhere Justiceand Enforcementservices
Nowthatwehavediscussedthekindofserviceswecanoffer,wehavetoprovidetheseservicesprofessionally.Forthat, wehavetolearnaboutthemanagementofprofessionalservices.Thisincludesvariousdisciplineslikeoperationsmanagement, finance management, human resource management, information systems management and marketing management. In this subject,wewilllearnaboutmanagingthemarketingoftheservicesthatwecanoffertosocietytoearnourlivelihood. You can recollect various services that you use everyday, like, electric supply, water supply, retail, transportation, telecommunication, ATM and education services. You may be already providing some professional service to a company and earningyourlivelihoodfromthecompany.Youmusthaveheardpeoplecomplainingaboutsomeservicewithwhichtheywere dissatisfied. You may have been dissatisfied with some service in the past as the service failed to satisfy you completely. You mighthavewonderedwhythecompanycannotprovidebetterservice.Youmighthavefurtherwonderedwhatcouldimprove thequalityofaservice. Atthesametime,youmighthavebeensatisfiedwithaserviceorevendelightedwithaservice.Weliketopurchasethe service from a particular service provider again and again because we are satisfied with the service offer, unless we do so becauseoftheunavailabilityofanyalternative.Youmayliketoofferaservicetosocietyandmakeitanexcellentofferthatis appreciatedbyyourcustomers.Youwillthenwonderwhatqualitiesshouldbethereintheservicethatyouoffersothatitis appreciatedbyyourcustomers.Atthesametime,youwouldwanttoearnhandsomeprofitsfromyourventuresothatyoucan growyourbusinessyearafteryear.Inordertobeabletoachievethoseobjectives,youhavetolearnaboutservicesmarketing.
1.7 Questions
Q1.Writethedefinitionofservices. Q2.Whatarethedifferenttypesoffundamentalhumanneedsthatservicescansatisfy? Q3.AnalysetheproductservicecontinuumillustratedinFigure1.1.Placefirefightingservices,carrepairservicesandhealthclub servicesonthiscontinuum.Whatisthesignificanceoftheproductservicecontinuum?
1.8 Answers
Q1.Writethedefinitionofservices. Answer:InISO9000:2000standard,aservicehasbeendeficendastheresultofatleastoneactivitynecessarilyperformedat theinterfacebetweenthesupplierandthecustomerthatisessentiallyintangible
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Q2.Whatarethedifferenttypesoffundamentalhumanneedsthatservicescansatisfy? Answer:AccordingtoProfessorManfredMaxNeef,servicescansatisfyninetypesoffundamentalhumanneeds.Theseare:1. Subsistence,2.Protection,3.Affection,4.Understanding,5.Participation,6.Leisure,7.Creation,8.Identity,and9.Freedom. Q3.AnalysetheproductservicecontinuumillustratedinFigure1.1.Placefirefightingservices,carrepairservicesandhealthclub servicesonthiscontinuum.Whatisthesignificanceoftheproductservicecontinuum? Answer:TheproductservicecontinuumillustratedinFigure1.1placesproductsandservicesofagraphrangingfromtangible dominanttointangibledominant.Itshowsthatcustomershavelowinvolvementintheproductionoftangibleproductswhile theyhavehighinvolvementintheproductionofserviceswhilehaveadominantintangiblecomponent.Thus,servicemanagers have to manage customers while they are involved in coproducing a service, to the extent that they must be satisfied (or delighted)withtheirexperienceofservicecoproductionandconsumption.Forexample,whencustomershavetodoarangeof activities in the bank or a selfservice restaurant, they must find the activities to be easy and satisfying, rather that being intriguing,difficultandirritatinginnature. Firefightingservicescanbeplacedattheintangibleendofthecontinuum,whilecarrepairservicesandhealthclubservices canbeplacedtowardstheintangibleendasthesemayinvolvethedeliveryofsomeproductslikesparesandhealthproducts respectively.
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