The Nature of Service

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The Nature Of Services

Service Bundle: Offering several services in a same package. Element| Core Goods| Core Services|
Business| Custom clother| Business hotel|
Core| Business suits| Room for the night|
Periphal goods| Garment bag| Bathrobe/ amenities|
Peripheral service| Deferred payment plans| In-house restaurant| Variant| Coffee lounge| Airport shuttle|
CORE BUSINESS: is the sector(s) of business activity that is the reason or purpose for being. Service/product bundle

Service Process Matrix
Definition: The Service Process Matrix is a classification matrix of service industry firms based on the characteristics of the individual firm's service processes.

LowHigh
Service factory Service Shop
Low Airlines, Trucking, Hospitals Auto Repair
Hotels, Resorts Other repair services

HighMass Service Professional Service
Retailing Physicians Wholesaling Lawyers Schools. Retail Accountants Aspect of banking Architects Degree of labor intensity

Degree of customer interaction and customization.

Service Package
Definition: Bundle of goods and services with information that is provided in some environments. Supporting facility: physical resources that must be in place before a service can be offered. Facilitating goods: Material consumed or purchased by the buyer, or items provided by the customer. Information: Operations data or information that is provided by the customer to enable efficient and customized service. Explicit Services: The benefits that are readily observable by the senses and that consist of the essential or intrinsic features of the service. Implicit services: Psychological benefits that the costumer may sense only vaguely, or the extrinsic features of the service. Characteristics of Services:

* Perishability
* Customer participation
* Simultaneity
* Intangibility
* Heterogeneity
* Lack of ownership

Non Ownership Classification of services.

Type of service | Customer Value| Example | Management challenges| Good rental| obtain temporary right to exclusive use| Vehicles, EquipmentFurniture| Site selection and maintenance| Place and space rental| Obtain exclusive use of defined portion of larger space| Hotel room, seat on airplane, storage unit| Housekeeping and achieving economics of scale| Labor and expertise| Hire other people to do the job | Car repair surgery management consulting| Expertise is a renewable resource but time is perishable| Physical facility usage| Gain admission to a facility for a period of time| Theme park, camp ground fitness gym| Queuing and crowded control| Network usage| Gain access to participate| Electric utility, cell phone internet| Availability and pricing decisions|

Strategic Service classification.
1) Nature of the Service act

PeopleThings
People’s bodies: Physical possession: Tangible health care, passenger Freight transportation Transportation, beauty salons Repair and maintenance Exercise clinics restaurants Laundry and dry cleaning Veterinary health care Intangible People’s minds: Intangible assets: Education, Broadcasting Banking, Legal services Information services theatres Accounting Securities Museums Insurance Direct recipient of service

Nature of the service act

2) Relationship with Customers...
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