Classification of Services

Services Classification

Services classification on the basis of following factors:

services classification

1. By Market Segment

Following types of services are there according to the types of the market served or ultimate customers:

  • End Consumer Services:  The services which are bought by the customers for self-consumption are termed as ‘end consumer services’ For example, hair cutting, beauty care, body massage, etc.
  • Business ConsumerServices: The various services which are bought by the organizations are called ‘business consumer services’ or Business to Business services. Ex: Consultancy, market survey, advertising, etc.

2. By Degree of Tangibility

  1. Highly Tangible:  Services are termed ‘highly tangible’ when any tangible product offering is included in it. Sometimes, the lifespan of such product is limited. For example, a person can take a car on rent for a specified period, after the completion of this time period, the customer needs to re3turn the car to the service provider.
  2. Service Connected to Tangible Goods:  Some kind of warranty is provided on the products by the business organizations. If a customer faces any difficulty with the products. Free services are offered to the customer for a limited period of time. Such free services come under this category. Ex: If a customer buys a cell phone, the manufacturer provides the free service for a limited time.
  3. Highly Intangible:   In these types of services, no physical product is offered to the customer. For example: In yoga center, the customers can feel the relaxing environment in the center but apart from this, no physical products are offered.

3. By Skill of  Service Providers

The different types of services can be grouped into the following categories depending upon the skill and abilities required by the service provider to provide services to the customers:

  1. Professional Services:  Formal training is essential for providing these kinds of services. For example, Services offered by doctors, It consultants, lawyer, etc.
  2. Non-professional Services:  No formal training is required to provide services to the customers. Housekeeping and babysitting are the typical examples of these types of services, where there is no need for formal training for the service provider.

4. By Business Orientation

  1. Non-Profit Services: Serving the society and not generating profit are the main objectives of such services. Ex: Services of charitable hospitals, Government schools, etc.
  2. Commercial Services:  Earning maximum profits and revenues are the main objectives of such services. Ex: services offered by airlines, banks, insurance advisers, etc.

5. By Degree of Regulation

Depending on the degree of regulations, various services can be classified as below:

  1. Highly Regulated:  A large variety of rules and regulations are formulated to regulate these services. Ex:  hospitals, insurance, mass transportation, etc.
  2. Limited Regulated:  Some of the services have limited rules and restrictions. Ex: fast foods, catering, etc.
  3. Non-Regulated:  In some of the services, there are no regulations. Ex: lawn care, house painting, computer, etc.