Designing & Managing Services
Designing & Managing Services
N. Banerjee
Categories of a company’s offering
Pure
Pure tangible
tangible good
good
Good
Good w/
w/ accompanying
accompanying services
services
Hybrid
Hybrid
Service
Service w/
w/ accompanying
accompanying goods
goods
Pure
Pure service
service
What is a Service?
A service is any act of performance that
one party can offer another that is
essentially intangible and does not result
in the ownership of anything; its
production may or may not be tied to a
physical product.
Intangible
Perishable
Inseparable
Variable
Service Distinctions
• Equipment-based (eg. ATM) or people-based.
• Service processes (restaurants have developed cafeteria-
style, fast food, buffet, and candlelight service formats)
Intangibility
Inseparability
Variability
Perishability
Service Intangibility: A challenge for marketers
• Intangibility means ‘palpable’ intangibility & mental intangibility
(-Bateson,1977).
COMPANY
Managing productivity
• Service personnel
Intangibility
• Tools & equipment used
• Customers
• Convenience
Assurance
Empathy
Reliability
Responsiveness
Tangibles