Monday, 7 April 2014

Service Marketing: Four Categories of Services: know your service by Four Broad Categories of Services with examples

Four Broad Categories of Service


Though it, service provider can know which service.
This categories show how unwise it is to overgeneralize about services.
The mangers in particular service industry shouldn't fall in that trap of believing that their situation is unique and they have nothing to learn from any other service industry.

(Source: Service Marketing by lovelock)

There are total four categories,
Main two categories: Tangible and Intangible
In Tangible two part: People and Possession
In Intangible two part: Mental Stimulus and Information

(1) People Processing


  • The action/work/ service do on direct on people body, with equipment and without equipment
  • A physical location where people or machines/ both, create and deliver service benefits to customers. 
  • In People Process service customer must prepare for co-ordination with the service operator, for example, Hair cutting, customer must follow instruction given by barber. Follow the instruction given by doctor during the check up patient body  
  • Time required of customers in people processing services varies widely. Customer satisfied after completed services, to reach his/her destination, satisfied his hunger or is now sporting clean and stylishly cut hair or has has a good night's sleep away from home or is now in physically better health
  • Example of people processing
    • Passenger transportation
    • Health care
    • Lodging
    • Beauty Salons
    • Physical therapy
    • Fitness centers
    • Restaurants/bars
    • Barbers
    • Funeral services

(2) Possession Processing



  • The service directed at physical possession (work/action/service do on customer's physical good's)
  • Customers are less physically involved with this type of service.
  • Example of Possession Processing
    • Freight transportation
    • Repair and maintenance
    • Warehousing/Storage
    • Office cleaning services
    • Retail distribution
    • Laundry and dry cleaning
    • Refueling
    • Landscaping/gardening
    • Disposal/recycling 

(3) Mental Stimulus Processing 



  • The work/activity/service with effect human mind. (Intangible)
  • In this service customer must investment of time and mental effort.
  • It can be inventoried. For example, customer's favorite movies/songs download from source and can store in their own gadgets and use it when they want.
  • Example of Mental Stimulus Processing
    • Advertising/PR (Personal Relations)
    • Art's and entertainment
    • Broadcasting/cable
    • Management consulting
    • Education
    • Information Services
    • Music concerts
    • Psychotherapy
    • Religion
    • Voice telephone 

(4) Information Processing



  • Information is the most intangible form of service output, but it may be transformed into more enduring, tangible forms such as letters, reports, books, CD-Roms, or DVDs. 
  • That are highly dependent on the effective collection and processing of information are financial service and professional services such as accounting, law, marketing, research, management consulting, and medical diagnosis
  • Example of Information Processing
    • Accounting
    • Banking
    • Data processing
    • Data transmission
    • Insurance
    • Legal services
    • Programming
    • Research
    • Securities investment
    • software consulting 

5 comments:

  1. It helps me a lot in my MBA home assignment. Thanks!

    ReplyDelete
  2. Can you explain why hotel is a people people processing, as the consumer use the service, it have a direct effect on consumer mind, as they feeling relax . The hotel business should allocate in mental stimulus.

    ReplyDelete
    Replies
    1. yeah but in order to use the hotelroom you has to be phisycally there so it counts as a people processing people even if the mind is involves

      Delete
  3. where does the wedding decor planning service fall under?

    ReplyDelete