Services are about the economic activities offered by one party to another. On the other hand is about exchange for the customer money, time, and effort, service customers expect to obtain value from access to goods, labor, facilities, environments, professional skills, networks, and systems; but they do not normally take ownership of any of the physical elements involved. And then services also involve a from of rental, offering benefits without transfer of ownership such as include rental of good.
Defining four categories of services and example
Based on differences in nature of service act tangible or intangible and who or what is direct recipient of service people or possessions, there are four categories of services: first one is people processing second one is possession processing, third one Mental stimulus processing, the last one is information processing.
(1) People Processing is about services that are directed at the people themselves. Customers must physically enter the service factory. The managers should think about the process and output from customer's perspective. The people processing example have hospitals and fitness
(2) Possession Processing is about customers may ask service organizations to provide treatment for some of their physical possessions. Customers are less physically involved compared to people processing services. Production and consumption are separable. The possession processing example have repair services and house cleaning services
(3) Mental Stimulus Processing is about the services touch people's minds, and have the power to shape attitudes and influence behavior. Core content of services is information-based. it can be inventoried The mental stimulus processing example have consulting, education and broadcasting.
(4) Information processing is about information is the most intangible form of service output but may be transformed into enduring forms of service output. Some...