Introduction: Project Report on Consumer Preference for Services in Aviation Industry. Let us understand this better by explaining “Service”. In economics and marketing, service is the non-material equivalent of a good. It is claimed to be a process that creates benefits by facilitating a change in customers, a change in their physical possessions, or a change in their intangible assets. Service provision has been defined as an economic activity that does not result in ownership, and this is what differentiates it from providing physical goods. Service has certain characteristics which differentiates it from products or goods.
The features or characteristics of services are as follows:
Intangibility – Services are intangible in nature and this is the basic feature or characteristic of a service that differentiates it from the products or physical goods. For example, a student renders educational services cannot see or feel the knowledge provided by the instructor or the teacher.
Simultaneity – Services are simultaneously produced and consumed. The production of the service and the consumption of the service take place at the same time. Hence the services have a characteristic of simultaneity.
Perishability – Services are also perishable in nature which means that if not sold then cannot be regained. Hence services cannot be stored. In case of an airplane seats not taken up would remain empty during the entire flight. The service capacity of this flight has perished and cannot be recouped. Services cannot be returned or resold.
Inseparability – The services cannot be separated from the people providing the services. The service can never be separated from the service provider. Hence services also have the characteristics of inseparability.
Hence these are the characteristics of services. There are many types of services available. The services can be classified on a particular appropriate basis.
Let us try to classify the service on the basis of industry and target effects.
Heterogeneity – Services are heterogeneous because a service is modified for each client or each situation. The service delivered can never be the same if delivered again. Hence mass production of services is difficult. Both inputs and outputs to the processes involved providing services are highly variable, as are the relationships between these
processes, making it difficult to maintain consistent quality.
Labour intensive – Services are labour intensive. Services usually involve considerable human activity, rather than a precisely determined process. Human resource management is important. The human factor is often the key success factor in service industries.
TYPES OF SERVICES
There are many types of services and to understand them better, they need to be classified. The services are broadly classified on the following basis:
CLASSIFICATION OF SERVICES BY TARGET EFFECTS
- Services aimed at physical care such as health care, beauty salons, gymnasiums and restaurants
- Services for intangible assets such as banking, legal consultation, accounting, brokering, insurance and securities services.
- Services aimed at the mind of the customer such as education, broadcasting, information, entertainment and amusement.
- Services aimed at physical possessions and tangible assets such as transport, repair and maintenance, cleaning and janitorial, laundry, gardening and veterinary services.