Service Classifications

Classification of Services
Why

classify?

Marketing within one service sector may be able to learn best practice from another similar sector Classification should be driven by similarity of marketing needs rather than similarities of technology etc.

TYPES OF GOODS

SEARCH GOODS

EXPERIENCED GOODS

PRIOR TO PURCHASE OR USE

ONLY AFTER BUYING OR CONSUMPTION

TANGIBLES

INTANGIBLES

How Product Attributes Affect Ease of Evaluation

Most Goods Most Services

Clothing

Restaurant meals

Computer repair Legal services

Haircut

High in search attributes

High in experience attributes

High in credence attributes

Complex surgery

Motor vehicle

Foods

Chair

Easy to evaluate

Difficult to evaluate

Entertainment

Lawn fertilizer

Qualities that Affect

Consumer Evaluation of Services

Search Qualities Experience Qualities Credence Qualities

ATTRIBUTE OF THE SERVICE PRODUCT

PEOPLE BASED FACILITY/ EQP. BASED HIGH MEDIUM HOTELS AIRLINES TRAIN MOVIE THEATRE RADIO HIGH MEDIUM LOW

LOW

LIVE THEATRE RETAIL PERFORMANCE BANKING (TRADITIONAL) MANAGEMENT CONSULTANCY

Considering Functional Elements in Service Development

Divergence (Degree of Standardization)

Complexity (Degree of Intricacy) Low High Low Local barber House Cleaning High Dentistry Litigation

METHOD OF DELIVERY
NATURE OF INTERACTION BETWEEN CUSTOMER AND SR. ORGANISATION CUSTOMER RESORT GOES HOTEL SR. ORGN. PEST COMES CONTROL MAINT. SRs BOTH CREDIT TRANSACT CARD AT A 'CLOSE' RANGE (MAIL/ E- COM) FAST FOOD CHAIN CAR RENTAL

TELEPHON E CO.

BY OWNERSHIP & BUSINESS OBJ.

GOVT FOR PROFIT NON-GOVT

GOVT:FOR NON GOVTPROFIT FOR PROFIT GOVT-NON NON GOVTPROFIT NON PROFIT

NONPROFIT

Who or What is the Direct Recipient of the Service? What is the Nature of the Service Act? People Things

Tangible Actions

Services directed at peoples bodies Services directed at goods and other physical possessions: Health care Freight transportation Passenger transportation Industrial equipment repair an Beauty salons maintenance Exercise clinics Laundry and dry cleaning Restaurants Landscaping/lawn care Haircutting Veterinary case Services directed at peoples minds: Services directed at intangible assets: Education Banking Broadcasting Legal services Information services Accounting Theaters Securities Museums Insurance

Intangible Actions

Type of Relationship between the Service Organization and its Customer

Membership Relationship
Insurance Telephone subscription Continuous Delivery College enrollment of Service Banking Automobile Association Long-distance phone calls Theater series subscription Commuter ticket or transit Discrete Transactions pass

Non formal Relationship

Radio station Police protection Lighthouse Public highway

Nature of Service delivery

Car rental Mail service Toll highway Pay phone Movie theater Public Transportation Restaurant

Extent to Which Service Characteristics Are Customized

Extent to which Customer Contact Personnel

High
Exercise Judgment in Meeting Individual Customer Needs

Low
Education (large classes) Preventive health programs

High

Legal service Health care/surgery Architectural design Executive search firm Real Estate agency Taxi service Beautician Plumber Education(tutorials) Telephone service Hotel services Retail banking (excl. major loans) Good restaurant

Low

Public transportation Routine appliance repair Fast food restaurant Movie theater Spectator sports

What is the Nature of Demand for the Service Relative to Supply?

Extent to which supply is constrained
Wide Electricity Peak Natural gas Demand Can Telephone Usually be Hospital maternity unit Met without a Major Delay Fire emergencies Narrow Insurance Legal service Banking Laundry and dry cleaning

Peak Demand Regularly Exceeds Capacity

Accounting and tax preparation Passenger transportation Hotels and motels Restaurants Theaters

Services similar to those in 2 but which have insufficient capacity for their base level of business

Nature of Interaction be5ween Customer and Service Organization

Method of Service Delivery

Availability of Service Outlets
Single Site Multiple Sites
Customer Goes to Theater Bus service Service Organization Barbershop Fast food chain Lawn care Mail delivery AAA Service Organization service Pest emergency repairs Comes to Customer control service Taxi Customer and Service Organization Transact at Arms Length (mail or elecronic Communications) Credit card company Local TV station Broadcast network Telephone co.

GATS Agreement Classifies Services into Four Modes of Trade

Services supplied across borders (international telephone calls)

Services provided by establishing a commercial presence in another country ( Foreign branch of a bank)

Services consumed abroad (Tourism)

Services provided by the movement of natural persons across borders (Consulting)

Service Classifications: Review

Marketable

v unmarketable services Producer v consumer services Extent of customer involvement Pattern of service delivery People based v equipment based services Extent of Customization GATS Classification