Classification of services


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This P.P.T gives introduction about classification of services on different variables.

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Classification of services

  1. 1. Classification Of Services Service can be classified in several ways. Various authors have tried to classify services on the basis of different features /aspects such as the market segments, tangibility factor ,skill type , etc. They are enlisted below. • Market segment • Degree of tangibility • Skills of the service provider
  2. 2. • • • • Goals of the service provider Degree of regulation Degree of labor intensiveness Degree of customer contact In India service sector contributes 60 % of the GDP and 35 % of employment. Around 80 % of India’s total exports are dominated by high skilled services , such as software business services and communication services.
  3. 3. Market Segment Market Segment : Service can be classified on the basis of market segment they are catering to. Thus we can have service catering to end consumers such as the hair salon and beauty services , coaching classes and car wash services and services catering to organizational customers such as management consulting, repair and maintenance services for machines and legal services
  4. 4. Degree Of Tangibility Service can be classified into tangible offerings • Rental Goods ( Hotel Room, Car etc.) • Owned Goods (T.V Repair etc.) • Non –Good (College education )
  5. 5. Skills of the Service Provider Service can be provided by highly skilled labour and unskilled labour. Thus service can be classified as • Professional ( Legal, Medical , management etc. ) • Non professional ( Taxi, security , shoe shining , laundry , cleaning services etc.)
  6. 6. Goals Of The Service Provider Service are differentiated on the basis of the goals they pursue-whether they are profit making or non profit making. • Profit ( Airlines, Hotels , Insurance etc) • Non-profit ( Indian Postal Service , NGO , Public libraries , Religious Places etc.)
  7. 7. Degree Of Regulation Service are also classified according to the extent of government regulation on them. High Regulation ( Airlines, Railways , and Roadways etc.) Limited Regulation ( Hospitality sector ) Absent Regulation ( Barber and Beauty Service , Personal services, etc.)
  8. 8. Degree Of Labor Intensiveness Services can be equipment based or people based. Equipment based services – • completed automated services (ATMs , Coffee Vending Machines etc.) • Unskilled Operators (Movie theatre , Dry cleaning etc) • Skilled operator (Airlines , Crane machines , Railways etc.)
  9. 9. People based Services • Unskilled (Security Guards, Cleaning services etc.) • Skilled labor (Printing, catering etc.) • Professionals (Lawyer ,Doctor ,Management consultant , HR Consultant etc.)
  10. 10. Degree Of Customer Contact Service is categorized on the basis of customer contact High Contact- Where customer spends time , days , week , month , year like education and hospitality services Low Contact –Low contact service is one which the contact with service system ranges from few minutes to some hours like appliance repair service, postal services etc.
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