Classification of

Services

Presented BY
Dr. Fatima Beena
 Services
“Any activity or benefit that one party
can offer to another that is essentially
intangible & does not result in the
ownership of anything. It’s production
may or may not be tied up to a physical
product.”
 Services Vs Goods
Services Goods
Intangible Tangible
Heterogeneous Homogenous
Produced in Buyer Seller interaction Produced in factory

Production, distribution & consumption takes All three are separate & independent
place simultaneously

Consumers participate in production Consumers don’t generally participate

Cannot be stored Can be stored

Transfer of ownership cannot take place Transfer of ownership does take place
Characteristics of Services
 Classification of Services

It is required to design & apply marketing techniques to

completely satisfy the customer & increase profits & identify
new emerging services.

Classifications can be done on following basis:

• Classification by Industry
• Classification by Target Effect
• Skill level of service provider (Professional/ Nonprofessional)
• Labor intensiveness (People-based/Equipment-based)
• Degree of customer contact (High / Low)
• Goal of the service provider (Profit /Nonprofit)
 Classification By Industry

a. Entertainment industry
b. Education
c. Telecommunications
d. Finance & Insurance
e. Transportation
f. Public utilities
g. Government services
h. Health
i. Hospitability Industry
j. Business services
k. Trading
 Classification By Target Effect

Based on Degree Of Customer Involvement: ( Lovelock)

1. People Processing: Services aimed at physical care e.g.

Healthcare, clinics, restaurant, hospitals, hair stylists, fitness centers

2. Mental Stimulus Processing: Services aimed at mind of customer

e.g. Education, information, entertainment, consulting, psychotherapy

3. Possession Processing: Services aimed at physical possession &

tangible assets e.g. repair & maintenance, laundry, repair services,
landscaping, house cleaning services

4. Information Processing : Services for intangible assets e.g.

Banking, legal consultation, brokerage, financial services.
 Skill level of service provider

•Teacher

•Doctor

•Engineer

•Accountant
 Labor intensiveness

Mechanic

Electrician

Labor

Plumber

Artisan
 Degree of customer contact

High Degree (Every day) – TV channels, mobile etc.

Moderate Degree (Regular) – Teacher, Barber, washer

man etc.

Low Degree ( Occasional ) – Priest, Doctors etc.

Thank you for your
attention!

Have a nice evening!