Classification of Services

CLASSIFICATION OF
SERVICES
MS 215
Types of Services
Core Services: A service that is the primary
purpose of the transaction. Eg: a haircut or the

services of lawyer or teacher.
Supplementary Services: Services that are
rendered as a corollary to the sale of a tangible
product. Eg: Home delivery options offered by
restaurants above a minimum bill value.
MS 215
Type of End-User
Consumer services:- purchased by individuals customer for
their own consumption. Ex Beauty Care, Hair Cutting.

Business to Business:- These service are purchased by
the organization. Ex Market research, Advertising.

Industrial services:- Based on a contract between
organization & service providers. Ex Machine installation,

plant maintainences.
MS 215
The Service Tangibility

Highly Tangible:- the customer obtains a tangible Product in
hand. As cell phone on rent, Car rentals

Service Linked to tangible goods:- some organization offer
on warranty period to customer who purchase products from
them. As photocopying machine.
Tangible goods linked to Services:- some service offer a
tangible product along with the service requested by the

customer. As Airlines services offer food & magazines to
passengers.
Highly
intangible:- the services which do not provide

customers with any tangible product. Consultancy, Workshop
MS 215
Degree of Involvement of the

Customer: People Processing:- The customer is highly involved in the
services process & needs to be physically present in order to

experience the service. Ex. School or training centers.
Possession Processing:-the customer doesn't require to be
present but has to submit his property to the service provider. Ex
car
Mental Stimulus Processing:-the attention of the customer
must be directed on the service in order to experience the service.
Ex advertising
Information Processing this type of service requires services
personnel to collect information, analyze it, interpret &
appropriate advice to the client. Ex. market research
MS 215
People Processing
1. Customers must physically enter the system.
2. Sometimes, service provider goes to customer with
necessary tools.
3. People must be prepared to spend time actively
cooperating with the service operation.
Level of involvement can vary.
Managers must think about processes / outputs in
terms of what happens to customers or what benefits

are created.
Identify non-financial costs, time, mental and physical

MS 215
effort, fear, and pain etc.
Possession Processing
Working to tight deadlines to restore customers
possessions to good working order.

People are less physically involved and usually, no real
need for them to enter the service; often limited to

requesting the service; explaining the problem or
paying the bill only.
The
output in each instance, whether, installing

software or repairing car etc. should be a satisfactory
solution to a stated problem.
MS 215
Mental Stimulus Processing
Services that interact with peoples mind.
Anything touching peoples mind has power to shape attitudes

and influence behaviour.
Customers are in a position of dependency, and a potential for

manipulations. Hence, strong ethical standards and careful
oversight are required.
Recipients should spend time but not necessarily be physically

present in a service factory; just mentally in communication
with information being presented.
Information based content can be converted to digital bits,

recorded or transformed into manufactured products viz. CDs,
Videos, which can be packed and sold like any physical product.
MS 215
Information Processing
Most intangible form of service output.
Customer involvement determined more by tradition
or personal desire to meet face to face and not by the

needs of the operational process.
Customer
/ Supplier learn each others needs,

capabilities and personalities by personal meetings,
however this relationship can also be build / sustained
on trust or telephonic contact.
MS 215
People-based services
Services can be broken down into labour-intensive (peoplebased) and equipment-based services.
This can also be represented by the degree of contact:
People-based services - high contact: education, dental
care, restaurants, medical services.

Equipment-based - low contact automatic car wash,
launderette, vending machine, cinema, web based services.
MS 215
Skills & Expertise Required

Professional Services:- the service provider to be
formally trained to deliver the service. Ex Pilot. medical

services, legal services, accountancy, tutoring.
Non Professional services:- these Service do not

require the service provider to undergo any training to
deliver the service. babysitting, care taking, casual labor.
MS 215
Business Orientation of Service Provider

Not-for-profit organization:- the main objectives of the
service providers is to serve society & not to make profits.

Ex. Government schools, Social service organizations.
Commercial organization:- the main objectives of the
service provider is to earn revenues & make profits. Ex

Airlines, Insurance firms.
MS 215
STRATEGIC SERVICE
CLASSIFICATION
REFLECTS
CLASSIFICATION
MATRIX AND EXAMPLES
THE
MS 215
Strategic Service Classification (Nature of the

Service Act)
Direct Recipient of the Service
Nature of
the Service Act
Tangible actions
People
Peoples bodies:
Health care
Passenger transportation
Beauty salons
Exercise clinics
Restaurants
Peoples minds:
Education
Intangible actions Broadcasting
Information services
Theaters
Museums
MS 215
Things
Physical possessions:
Freight transportation
Repair and maintenance
Veterinary care Janitorial
services Laundry and dry
cleaning
Intangible assets:
Banking
Legal services
Accounting
Securities
Insurance
Strategic Service Classification

(Relationship with Customers)
Type of Relationship between Service Organization and Its Customers
Nature of Service
Delivery
Continuous
delivery
of service
Discrete
transactions
Membership relationship
Insurance
Telephone
subscription Electric
Utility Banking
No formal relationship
Radio station
Police
protection
Lighthouse
Public Highway
Long-distance phone
calls Theater series
tickets Transit pass
Sams Wholesale Club
Airline frequent flyer
Restaurant
Pay phone
Toll highway
Movie
theater
Public transportation
MS 215

(Customization and Judgment)
Extent to Which Service Characteristics Are Customized
Extent to Which
Personnel Exercise
Judgment in Meeting
Customer Needs
High
Surgery
High Taxi services
Gourmet restaurant
Low
Preventive health programs
Education (large classes)
Family restaurant
Telephone service
Hotel services
Low Retail banking
Cafeteria
Public transportation
Spectator sports
Movie theater
Institutional food service
MS 215

(Nature of Demand and Supply)
Extent of Demand Fluctuation over Time
Extent to which Supply

Is Constrained
Peak demand can
usually be met without
a major delay
Peak demand regularly

exceeds capacity
Wide
Electricity
Telephone
Police emergency
Hospital maternity
unit
Narrow
Insurance
Legal services
Banking
Laundry and dry
cleaning
Tax preparation
Passenger
transportation
Hotels and motels
Fast food restaurant

Movie theater
Gas station
MS 215

(Method of Service Delivery)
Availability of Service Outlets
Nature of Interaction
between Customer and
Service Organization
Customer travels to
service organization
Service provider
travels to customer
Transaction is at
arms length
Single site
Multiple site
Theater
Barbershop
Bus service
Fast-food chain
Taxi
Pest control service
Taxi
Mail delivery
AAA emergency repairs
Credit card company

Local TV station
Broadcast network
Telephone company
MS 215

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CLASSIFICATION OF

purpose of the transaction. Eg: a haircut or the

their own consumption. Ex Beauty Care, Hair Cutting.

the organization. Ex Market research, Advertising.

organization & service providers. Ex Machine installation,

The Service Tangibility

hand. As cell phone on rent, Car rentals

tangible product along with the service requested by the

intangible:- the services which do not provide

Degree of Involvement of the

services process & needs to be physically present in order to

terms of what happens to customers or what benefits

Identify non-financial costs, time, mental and physical

effort, fear, and pain etc.

Working to tight deadlines to restore customers

possessions to good working order.

need for them to enter the service; often limited to

output in each instance, whether, installing

Mental Stimulus Processing

Services that interact with peoples mind.

Anything touching peoples mind has power to shape attitudes

Customers are in a position of dependency, and a potential for

Recipients should spend time but not necessarily be physically

Information based content can be converted to digital bits,

Most intangible form of service output.

Customer involvement determined more by tradition

or personal desire to meet face to face and not by the

/ Supplier learn each others needs,

care, restaurants, medical services.

launderette, vending machine, cinema, web based services.

Skills & Expertise Required

formally trained to deliver the service. Ex Pilot. medical

Non Professional services:- these Service do not

Business Orientation of Service Provider

service providers is to serve society & not to make profits.

service provider is to earn revenues & make profits. Ex

Strategic Service Classification (Nature of the

Strategic Service Classification

Strategic Service Classification

Strategic Service Classification

Extent to which Supply

Peak demand regularly

Fast food restaurant

Strategic Service Classification

Credit card company

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