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1. Services are:
1.Deeds (actions)
2.Processes (procedure)
3.Performance (presentation)
THE SERVICES PROVIDED BY IBM AND KINGFISHER
AIRLINES ARE NOT TANGIBLE THINGS THAT CANT
BE TOUCHED,SEEN AND FELT,BUT RATHER ARE
INTANGIBLE DEEDS AND
PERFORMANCE.SIMILARLY, THE CORE
OFFERINGS OF HOSPITALS, HOTELS,BANKS
COMPRISE PRIMARILY DEEDS AND ACTIONS
PERFOMED FOR THE CUSTOMERS 1

2. ACCORDING TO THE MARKETING
GURUS-KOTLER & BLOOM
“ANY ACTIVITY OR BENEFIT THAT ONE PARTY
CAN OFFER TO 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”
2

3. 3

4. INTANGIBILITY
Services are intangible. They cannot be seen,
tasted,felt,heard or smelt before they are
bought unlike physical products. The
intangibility creates a feeling of uncertainty
about the outcome of a service.
A person using the services of UPS is
uncertain about its service because
he/she cannot see the service as it is
intangible. This characteristics of the
service makes the buyers look for
evidence of quality in the service. 4

5. Services cannot be separated from the service
provider. In fact, the production, delivery and
consumption of a service takes place
simultaneously in the buyer-seller interaction.
However ,some organizations are able to reduce
direct interactions by introducing new
technologies. For example, banks have
introduced the cheque facility, the credit card,
ATM to minimize direct buyer-seller interaction
INSEPARABILITY
5

6. Services are highly inconsistent. it is
impossible to have the same service from the
seller the second time. No two customers can
have exactly similar service even though they
experience it simultaneously.
VAARIABILITY
The services provided by McDonalds in
one of its Mumbai outlet would not be
similar to its service provided in
London or in Shanghai.
6

7. Services perish. They cannot be stored but can
only be experienced.
PERISHABILITY
A NIGHT STAY AT BURZ AL ARAB CANNOT BE STORED
PHYSICALLY.IT CAN ONLY BE EXPERIENCED
7

8. Service production is not a one- sided activity.
Customers are co-producers of service. there
is no service without the customer’s
participation.
CUSTOMERPARTICIPATION
A CUSTOMER CANNOT EXPERIENCE
THE MAGIC OF DISNEY LAND UNLESS
HE PARTICIPATES .
CUSTOMER PARTICIPATION IS VERY
ACTIVE IN SERVICES SUCH AS MEDICAL
TREATMENT,SALOON,HEALTH
CLUBS,COLLEGES ETC. 8

9. Service consumer will have experiences but
not ownership.
NO OWNERSHIP
You can take the services of Air India
but can never become the owner on
this basis no matter how many trips,
national or international you make .
9

10. • INTANGIBILITY IS A KEY DETERMINANT OF WHETHER AN OFFERING IS A SERVICE OR
NOT
• THIS IS VERY TRUE BUT VERY FEW PRODUCTS ARE PURELY INTANGIBLE OR
TOTALLY TANGIBLE
• INSTEAD SERVICES TEND TO BE MORE INTANGIBLE THAN
MANUFACTURED PRODUCTS,AND MANUFACTURED PRODUCTS TEND
TO BE MORE TANGIBLE THAN SERVICES
• THE FAST FOOD INDUSTRY ,WHILE CLASSIFIED AS A SERVICE,ALSO
HAS MANY TANGIBLE COMPONENTS SUCH AS THE FOOD, THE
PACKAGING, AND SO ON.
• THEY ARE VERY FEW “PURE SERVICES” OR “PURE GOODS”
• SALT IS A GOOD EXAMPLE FOR “PURE GOODS” AND
TEACHING,IDEA SELLING FOR THE “PURE SERVICES”
PROVIDES SERVICES BUT ITS SERVICE IS BASED ON MANY
TANGIBLE POSSESSIONS INCLUDING THE AEROPLANES 10

11. SALT
SOFT DRINKS
AUTOMOBILES
TELEVISION
FAST FOOD OUTLETS
FAST FOOD OUTLETS
ADVERTISING AGENCY
AIRLINES
COMMUNICATION NETWORK
TEACHING
TANGIBLE
DONMINANCE
INTANGIBLE
DONMINANCE
11

12. 12

13. ALL HUMAN ACTORS WHO PLAY A PART IN
SERVICE DELIVERY AND THUS INFLUENCE THE
BUYER’S PERCEPTION:THEY ARE
• THE FIRM’S PERSONNEL
• THE CUSTOMER/S
PEOPLE
JAY LENO,PRESENTER OF “THE TONIGHT’S
SHOW WITH JAY LENO” IS A PART OF THE
SERVICES PROVIDED BY THE PRODUCERS OF
THIS FAMOUS TALK SHOW.NOT ONLY HIM
BUT THE PEOPLE WATCHING HIS SHOW ON
TELEVISION ARE ALSO PART OF THE
MARKETING. 13

14. "Join the Pepsi people (feeling free)".
THIS 1973 PEPSI SLOGAN ADVOCATES
THE CONSUMER TO JOINT THE PEPSI
FACTION,THIS PROVES THAT PEOPLE
“CONSUMERS” ARE INSEPARABLE PART
EVEN FOR MARKETING OF THE
PRODUCTS.
14

15. PHYSICAL EVIDENCE
WHICH COMPANY DOES HE REMIND
YOU OF?
BUT WHY MC DONALDS ????
2. COLOUR COMBINATION OF THE DRESS
1. THE MASCOT
3. THE LOGO OF THE COMPANY
THE ENVIROMENT IN WHICH THE SERVICE IS DELIVERED AND
WHERE THE FIRM AND THE CUSTOMER INTERACT,AND ANY
TANGIBLE COMPONENTS THAT ASSIST PERFORMANCE OR
COMMUNICATION OF THE SERVICE.
15

16. HE REMINDS YOU OF SOMETHING FROM
KENTUCKY??
KENTUCKY FRIED CHICKEN
PHYSICAL EVIDENCE INCLUDES:
1. FACILITY DESIGN
2. EQUIPMENT
3. EMPLOYEES DRESS
4. OTHER TANGIBLES
•REPORTS
•BUSINESS CARDS
•STATEMENTS 16

17. CONT…
YOU ENTER INTO THE HARD ROCK
CAFÉ WHERE YOU WILL FIND THE
THEME OF THE RESTAURANT BASED
ON ROCK MUSIC.YOU WILL BE
GREETED BY EMPLOYEES WEARING
DRESSES DESIGNED EXCLUSIVELYFOR
THE EMPLOYEES OF HARD ROCK
CAFÉ.THE carte du jour (MENU) IS
ALSO VERY UNIQUE IN ITS DESIGN.THE
COLOUR OF THE INTERIOR IS
UNIFORM ALL AROUND THE WORLD.
ONLY ROCK MUSIC IS PLAYED IN THE
CAFÉ. 17

18. PROCESS
“THE ACTUAL PRODEDURES,MECHANISM,AND
THE FLOW OF ACTIVITIES BY WHICH THE SERVICE
IS DELIVERED”
AS YOU GO TO WATCH A MOVIE IN A THEATRE
1. YOU BUY THE TICKET FROM
THE COUNTER OR EVEN
FROM THE INTERNET
THE PROCESS:
18

19. 2.YOU ENTER THE HALL WHERE YOUR TICKET WILL BE CHECKED
3. YOU SEAT ACCORDING TO THE SERIAL NUMBER OF YOUR
TICKET
4. IF YOU WANT ANY EATABLES THEN YOU HAVE TO COME
OUTSIDE THE HALL AND BUY YOUR REFRESHMENT
5. AS THE FILM ENDS YOU COME OUT OF THE HALL.NOW THE
PROCESS GETS OVER
* THE PROCESS STARTS ONCE YOU BUY THE TICKET AND IT ENDS AS YOU
STEP OUT OF THE HALL AFTER THE SHOW ENDS .
6. YOU TOOK THE SERVICE OF THE THEATRE BUT BY NO MEANS
YOU WERE THE OWNER OF YOUR SEAT .
19

20. EXPECTED SERVICE
PERCEIVED SERVICE
SERVICE DELIVERY
CUSTOMER-DRIVEN
SERVICE DESIGN AND
STANDARDS
COMPANY PERCEPTIONS OF
CONSUMER EXPECTATIONS
EXTERNAL
COMMUNICATIONS TO
CUSTOMERS
COMPANY
CUSTOMER
Gap
Gap 1
Gap 2
Gap 3
Gap 4
CUSTOMER
NOT KNOWING WHAT THE CUSTOMERS EXPECT
SELECTING WRONG SERVICE
DESIGN AND STANDARDS
NOT DELIVERING TO SERVICE
STANDARD
NOT MATCHING
PERFORMANCE TO PROMISE
20

21. 2
Customer’s Expectations
Customer’s Expectations as perceived by the Company
THERE IS A MISMATCH

22. EXPECTED SERVICE
PERCEIVED SERVICE
SERVICE DELIVERY
CUSTOMER-DRIVEN
SERVICE DESIGN AND
STANDARDS
COMPANY PERCEPTIONS OF
CONSUMER EXPECTATIONS
EXTERNAL
COMMUNICATIONS TO
CUSTOMERS
COMPANY
CUSTOMER
Gap
Gap 1
Gap 2
Gap 3
Gap 4
CUSTOMER
NOT KNOWING WHAT THE CUSTOMERS EXPECT
SELECTING WRONG SERVICE
DESIGN AND STANDARDS
NOT DELIVERING TO SERVICE
STANDARD
NOT MATCHING
PERFORMANCE TO PROMISE
22

23. 23
CLEANLINESS
EXPECTATIONS
COMFORT
EXPECTATIONS
EMPLOYEE
BEHAVIOUR
EXPECTATIONS
CLEANLINESS
EXPERIENCED
COMFORT
EXPERIENCED
EMPLOYEE
BEHAVIOUR
EXPERIENCED
CLEANLINESS
EXPERIENCED
COMFORT
EXPERIENCED
EMPLOYEE
BEHAVIOUR
EXPERIENCED

24. 24
CLEANLINESS
EXPECTATIONS
COMFORT
EXPECTATIONS
EMPLOYEE
BEHAVIOUR
EXPECTATIONS
CLEANLINESS
EXPERIENCED
COMFORT
EXPERIENCED
EMPLOYEE
BEHAVIOUR
EXPERIENCED
CLEANLINESS
EXPERIENCED
COMFORT
EXPERIENCED
EMPLOYEE
BEHAVIOUR
EXPERIENCED

25. GROWTH OF SERVICE SECTOR
• THE GROWTH IS A WORLDWIDE TREND
• SERVICES ACCOUNT FOR OVER 60 PERCENT OF
THE GDP OF THE UNITED STATES OF AMERICA
• MORE THAN 75 PERCENT OF THE
WORKFORCE IN THE US IS EMPLOYED IN THE
SERVICE SECTOR.
25

26. REASONS FOR GROWTH IN SERVICE
SECTOR
THE GROWTH IN THE SERVICE SECTOR CAN BE
BROADLY CATEGORISED INTO TWO.THEY ARE
26

27. MANUFACTURING FIRMS REALISED THE
IMPORTANCE OF STAFF FUNCTIONS AND STARTED
BUNDLING WITH NUMBER OF SERVICE
FUNCTIONS SUCH AS SELLING,MARKETING
RESEARCH,ADVERTISING,LABOUR
WELFARE,HRD,FINACIAL ADVISERS,STRATEGIC
ADVISERS ETC.
WITH THE GROWTH OF COMPETITION AND THE
PACE OF CHANGE IN CONSUMER EXPOSURE AND
EXPECTATIONS FORCED ORGANIZATIONS TO LOOK
FOR SPECIALISED SERVICES. 27

28. 28

29. 29

30. 30

31. SEARCH QUALITIES
ATTRIBUTES THAT A CONSUMER CAN
DETERMINE BEFORE PURCHASING A PRODUCT:
SEARCH QUALITIES INCLUDE:
1. COLOUR
2. STYLE
3. PRICE
4. FIT
5. FEEL
6. HARDNESS
7. SMELL 31

32. EXPERIENCE QUALITY
ATTRIBUTES THAT CAN BE DISCERNED ONLY
AFTER PURCHASE OR DURING CONSUMPTION
EXPERIENCE QUALITIES INCLUDE:
1. TASTE
2. WEARABILITY
32

33. CREDENCE QUALITY
IT INCLUDES CHARECTERISTICS THAT THE
CONSUMER MAY FIND IMPOSSIBLE TO
EVALUATE EVEN AFTER PURCHASE AND
CONSUMTION
EXAMPLES ARE:
1. MEDICAL DIAGONISIS
2. AUTO REPAIR
3. LEGAL SERVICES
33

34. GOODS HIGH ON SEARCH QUALITY ARE EASY
TO EVALUATE.
GOODS HIGH ON EXPERIENCE QUALITY ARE
MORE DIFFICULT TO EVALUATE.
GOODS HIGH ON CREDENCE QUALITY ARE
THE MOST DIFFICULT TO EVALUATE BECAUSE
OF THE CUSTOMER’S LACK OF KNOWLEDGE
TO APPRAISE THE SERVICE.
34

35. CLOTHING
JEWELRY
FURNITURE
HOUSES
AUTOMOBILES
RESTAURANT
MEAL
VACATION
HAIR
CUT
COMPUTER
REPAIR
LEGAL
SERVICE
AUTO
REPAIR
MEDICAL
DIAGNONIS
MOST GOODS MOST SERVICE
E
A
S
Y
T
O
E
V
A
L
U
A
T
E
D
I
F
F
I
C
U
L
T
T
O
E
V
A
L
U
A
T
E
HIGH IN SEARCH
QUALITIES HIGH IN EXPERIENCE
QUALITIES HIGH IN CREDENCE
QUALITIES
SCALE OF EVALUATION FOR DIFFERENT TYPES OF PRODUCTS
35

36. 36

37. 37

38. PHYSIOLOGICAL NEEDS
SAFETY AND SECURITY NEEDS
SOCIAL NEEDS
EGO NEEDS
SELF
ACTUALISATION
ABRAHAM MASLOW’S HIERARCHY OF NEEDS
38