There are several ways to classify services, but four common methods include:
1. Tangibility
This classification focuses on the physical nature of the service. Services are generally considered intangible, meaning they cannot be touched or held. However, some services may have tangible components.
- Pure services: These services are entirely intangible, with no physical component. Examples include financial consulting, legal advice, and education.
- Tangible-dominant services: These services have a significant tangible component, such as a hotel room or a restaurant meal.
- Intangible-dominant services: These services primarily focus on intangible aspects, but may have some tangible elements. Examples include software development or marketing services.
2. Ownership
This classification considers who owns the service and its delivery.
- Owned services: These services are owned and delivered by the same entity. For example, a bank offers banking services.
- Rented services: These services are owned by one entity but delivered by another. For example, a car rental company rents out vehicles owned by a car manufacturer.
3. Delivery Channel
This classification focuses on the method of service delivery.
- Direct services: These services are delivered directly to the customer by the provider. Examples include hairdressing, massage therapy, and personal training.
- Indirect services: These services are delivered through intermediaries or channels. Examples include insurance, travel agencies, and online retailers.
4. Customer Involvement
This classification considers the level of customer involvement in the service delivery process.
- High involvement services: These services require significant customer participation and interaction. Examples include surgery, education, and financial planning.
- Low involvement services: These services require minimal customer involvement. Examples include dry cleaning, car washes, and public transportation.
Understanding these classifications helps businesses identify target customers, develop appropriate marketing strategies, and optimize service delivery.
