Understanding Services: Concepts, Classification & Selection

Service Concept

A service is an intangible activity provided to consumers to meet their needs and wants. Unlike tangible goods, services cannot be owned or stored. Service quality is often assessed through the interaction between the provider and the consumer, encompassing human factors, processes, and outcomes.

Service Classification

Based on Nature:

Convenience services: Essential daily services such as transportation, utilities, healthcare… often have an essential nature and are consumed frequently.

Shopping services: Services requiring careful comparison and selection, such as tourism, restaurants, fashion…

Personal services: Highly personalized services requiring close interaction between provider and consumer, such as financial advice, personal healthcare…

Based on Target Customer:

Business-to-business (B2B) services: Provided to businesses, for example: accounting services, management consulting, marketing services.

Business-to-consumer (B2C) services: Provided to individual customers, for example: dining services, beauty services, healthcare services.

Based on Delivery Method:

Direct services: Provided directly between the provider and the consumer, such as haircuts, medical examinations.

Indirect services: Provided through intermediaries, such as online flight bookings, online shopping.

Choosing Quality Services

Research and comparison: Before choosing, thoroughly research available options, comparing prices, quality, and provider reputation.

Read reviews and feedback: Consult opinions from previous users through social media or website reviews.

Review contracts: Carefully read contracts before signing to ensure your rights.

Check customer support: Assess the provider’s support and response capabilities.

Post-service evaluation: After using the service, take time to evaluate the quality and share your experience.

Differentiating good from excellent service: Good service meets basic needs, while excellent service exceeds customer expectations, creating a memorable experience.