Understanding Services: Concepts, Classification & Selection

Service Concept

A service is an intangible activity performed for a customer to satisfy their needs and wants. Unlike tangible goods, services cannot be owned, stored, or transported. Service quality heavily relies on the interaction between the provider and the consumer. A good service aims for maximum customer satisfaction.

Service Classification

Services can be classified according to various criteria, the most common being:

By Nature:

• Personal Services: Includes healthcare, education, consulting, etc.
• Business Services: Includes banking, insurance, transportation, tourism, etc.
• Public Services: Includes security, public health, public education, etc.

By Level of Customer Contact:

• High Customer Contact Services: Such as customer service, consulting, hairdressing, etc.
• Low Customer Contact Services: Such as postal services, freight transportation, etc.

By Tangibility and Intangibility:

• Intangible services primarily encompass activities such as consulting, education, and healthcare.
• Tangible services include accompanying activities such as supporting materials, equipment, and space…

Choosing the Right Service

Choosing the right service depends on several factors, including:

• Customer Needs: Clearly define needs and goals to be achieved.
• Budget: Compare prices and service quality from different providers.
• Provider Reputation: Consider previous customer reviews and feedback.
• Service Quality: Assess professionalism, efficiency, and customer satisfaction.

Conclusion: Understanding services, their classifications, and how to choose the right service will help you make informed decisions and optimize service utilization.

Further Considerations: Beyond these classifications, there are many other ways to categorize services depending on the specific industry and field. Thorough research will provide a more comprehensive overview of the service market.