This document classifies services based on 8 criteria: 1) tangibility of the service process, 2) recipient of the service, 3) place and time of delivery, 4) customization vs standardization, 5) nature of relationship with customers, 6) balance of demand and supply, 7) role of facilities/equipment/people, and 8) method of delivery. It provides examples of common services that fall under each classification for these 8 criteria.

1. Classification of Services
Degree of Tangibility of Service Process
Who or what are the direct recipient of Service Process
The place and time of service delivery
Customization Vs. Standardization
Nature of relationship with the customers
Extent to which demand and supply are in balance
Extent to which facilities, equipment, and people
are part of the service experience

2. Classification of Services
Degree of Tangibility of Service Process
NATURE OF THE
ACT
RECEIPIENT OF THE ACT
Service directed at
people’s bodies
Service directed at
physical possession
Service directed at
people’s minds
Service directed at
Intangible Assets
TANGIBLE
ACTION
INTANGIBLE
ACTION
•Health Care
•Hair cutting
•Passenger Transportation
•Restaurant
•Freight transportation
•Industrial equipment mant
•Laundry and dry cleaner
•Veterinary care
•Banking
•Legal service
•Security
•Insurance
•Education
•Broadcasting
•Information services
•Theatres
•Museums

3. Classification of Services
Relationship with customer
NATURE OF
SERVICE
DELIVERY
TYPE OF RELATIONSHIP
Membership relation Non formal Relshp
CONTINUOUS
DEL. OF
SERVICE
DISCRETE
•Cable TV
•Mutual Fund
•Telephone
•Banking
•College Enrollment
•Car rental
•Mail service
•Toll bridge/way
•Restaurant
•Pay phone
•Long distance phone call
•Theatre season ticket
•Commuter ticket
•Radio Station
•Police production
•Light house
•Public highway

4. Classification of Services
Customisation
EXERCISE OF
JUDGEMENT BY
CUSTOMER
CONTACT
PERSON
EXTENT OF CUSTOMISATION
High Low
High
Low
•Legal Services
•Health Care
•Taxi Service
•Beautician
•Tutorials
•Public Transmission
•Routine appliance
maintenance
•Movie Theatre
•Telephone service
•Hotel service
•Retail banking
•Education: Large classes
•Preventive health care

5. Classification of Services
Nature of Demand
EXTENT TO
WHICH SUPPLY
IS CONSTRAINED
EXTENT OF DEMAND FLUCTUATION OVER TIME
Wide Narrow
Peak demand
CAN be met
without delay
•Natural gas
•Telephone
•Hospital
•Tourist lodging
• -do- with less base
level capacity
•Accounting
•Electricity
•Theatres
•Insurance
•Banking
•Dry cleaner
Peak demand
regularly
exceeds
capacity

6. Classification of Services
Method of Service Delivery
NATURE OF
INTERACTION
WITH CUSTOMER
AVAILABILITY OF SERVICE OUTLET
Single Site Multiple Site
Customer goes
•Haircutting
•Beauty Saloon
•Theatre
• Mail delivery•Taxi
•Bus service
•Fast food chain
Service
Provider
Comes
Arm’s length
•Credit Card
•Local Radio Station
•National radio
•Telephone Company

7. Classification of Services
Level of equipment used
People’s
Participa
tion
HIGH
HIGH
LOW
LOW