Unit- IV : Introduction to Services

Contents of Unit-IV

1. Meaning and Definition of Service
2. Characteristics of Service
3. Classification of Services
4. Five Level of Service
5. Services vs. Physical Goods
6. Seven P’s of Services Marketing Mix
7. Servicescape

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Meaning & Definition of Service

Example:

Example:

Characteristics of Services

Classification of Services

Classification of Services - 2

Classification of Services - 3

Classification of Services - 4

Levels of Product (Services)

1. The core benefit is the fundamental need or wants that the customer satisfies when they buy the product.
2. The generic product is a basic version of the product made up of only those features necessary for it to function.
3. The expected product is the set of features that the customers expect when they buy the product.
4. The augmented product refers to any product variations, extra features, or services that help differentiate the product from its competitors.
5. The potential product includes all augmentations and transformations the product might undergo in the future. In simple language, this means that to continue to surprise and delight customers the product must be augmented.

Services Vs. Physical Goods

7 P’s of Services Marketing

Example - 7 P’s of Services Marketing

Hotel Rooms Example:

What is a servicescape?�

• “the environment in which the service is assembled and in which the seller and customer interact, combined with tangible commodities that facilitate performance or communication of the service”. (Booms & Bitner, 1981).
• This was further developed by Mary Jo Bitner into a model which “demonstrates the relationship between the physical ambience and place and its impact on service delivery and perception”. 

Servicescape examples�

• Apple’s store layout and design is so recognizable and iconic that it has even been trademarked! The brand does such a good job of creating a physical environment that reflects their brand with modern, clean architecture, spacious layouts, bright lighting, and dedicated service sections. As you move throughout the store you can explore additional services and products, often leading you to spend hours there without even realizing it!

• Starbucks is another global brand with a consistent servicescape across its cafes, but with enough nuance to make you feel right at home. Warm brown tones and comfy chairs and sofas invite you to spend time relaxing and enjoying a cup, or two, or three of coffee. Of course the smell of freshly made coffee and snacks also greets you upon entry, with the food and drinks counter front and center to get your taste buds immediately in the mood for your morning pick me up. 

• Supercuts is a great example of a does-what-it-says-on-the-tin type of servicescape. A quick Google image search of ‘Supercuts’ demonstrates that their salons are often glass fronted with a straightforward, functional layout. Usually available for walk-in appointments, customers can see clearly throughout the salon and make a quick judgement on whether they are likely to get an immediate appointment. This sort of accessibility reflects the brand’s affordable hairdressing approach, with clear signage of services and offers also indicating that what you see is what you get.