Classification of Services

Services can be classified in two ways-
Classification based on industry.
Classification based on ‘nature of process by which services are created and delivered’.

1. CLASSIFICATION OF SERVICES DR. AMITABH MISHRA 1
CLASSIFICATION
OF
SERVICES

2. CLASSIFICATION OF SERVICES
Services can be classified in two ways-
 Classification based on industry.
 Classification based on ‘nature of process by
which services are created and delivered’.
CLASSIFICATION OF SERVICES DR. AMITABH MISHRA,

2

3. CLASSIFICATION OF SERVICES DR. AMITABH MISHRA 3
(1) Classification based on Industry
This is traditional way of grouping services.
This is a tunnel vision.
 A service manager can say, he is in-
Transportation,
Hospitality,
Banking,
Telecommunication,
Insurance, Etc.

4. CLASSIFICATION OF SERVICES DR. AMITABH MISHRA 4
(2) Classification based on
nature of process by which services are
created and delivered.
Marketer do not usually need to know the specifics of how
physical goods are manufactured, that is the responsibility of
people who run the factory.
Since customers are often involved in service production,
marketer do need to understand the nature of process to
which their customer may be exposed.

5. CLASSIFICATION OF SERVICES DR. AMITABH MISHRA 5
•A process involves taking inputs and transforming it in to
out put.



•Two things get processed in services-
•People (Passenger transportation, Education)
•Object ( Freight transportation, Data analysis, Banking)
INPUT PROCESS OUTPUT

6. CLASSIFICATION OF SERVICES DR. AMITABH MISHRA, AIMT GR. NOIDA 6
•We can categorize services in four broad groups-
•People Processing Services.
•Possession Processing Services.
•Mental Stimulus Processing Services.
•Information Processing Services.

7. CLASSIFICATION OF SERVICES DR. AMITABH MISHRA 7
• These four ways of classification schemes are
based on-
•Tangible actions to either customer’s body or
physical possession.
•Intangible action to either people’s mind or
their intangible action.

8. 1- People Processing
Services

9. CLASSIFICATION OF SERVICES DR. AMITABH MISHRA, 9
1- People Processing Services
•These services are directed at people’s body.
•To receive these services customers must physical
enter services system.
•Customers are integral part of the process, they can
not obtain the benefits they desire by dealing at arm’s
length with service supplier.

10. CLASSIFICATION OF SERVICES DR. AMITABH MISHRA 10
• Examples are-
•Passenger transportation.
•Health care.
•Beauty saloon/Barbers.
•Restaurant/Bars.
•Lodging.
•Etc.

11. 2- Possession Processing
Services

12. CLASSIFICATION OF SERVICES DR. AMITABH MISHRA 12
2- Possession Processing Services
• Possession processing services are directed at
physical possession.
• Customers are less physically involved with this
type of service than with People processing services.
•Consider difference in your role between using
passenger and freight transportation.

13. CLASSIFICATION OF SERVICES DR. AMITABH MISHRA 13

•In most Possession processing services the customers
involvement is limited to-
•Dropping off the items that need treatment,
•Requesting the service,
•Explaining the problem and later returning to pick up
the item and
•Pay the bill.

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If object to be processed is something that is difficult
or impossible to move, such as land escaping, heavy
equipment, part of building, the service factory must
come to the customer, with service personnel, tools
and material.

15. Examples are-
Freight transportation.
Repairer & Maintenance services.
Warehousing and store services.
Office cleaning services.
Etc.

16. 3- Mental Stimulus Processing
Services

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3- Mental Stimulus Processing Services.
•Mental stimulus processing services are directed at
people mind
•These services interact with people’s mind
•Receiving these services require an investment of
time on the customers part. However, customers do
not necessarily need to present in service factory.

18. CLASSIFICATION OF SERVICES DR. AMITABH MISHRA 18
•They simply need have to be mentally in
communication with information being presented.
•There is an interesting contrast between people and
possession processing services.
•Although a passenger can sleep in flight and still
obtain the benefit of arriving at their desired
destination. But a student who falls sleep in class room
will not be wiser at the end than the beginning.

19. CLASSIFICATION OF SERVICES DR. AMITABH MISHRA 19
•Examples are-
• Education
• Meditation
• Psychotherapy
• Professional advice
• Entertainment
• News and Information

20. 4- Information Processing
Services

21. CLASSIFICATION OF SERVICES DR. AMITABH MISHRA 21
4- Information Processing Services.
•Information processing services are directed at
intangible assets.
•Information is the most intangible form of service
output, but it may be transformed in to more
enduring, tangible form represented by letters,
reports, books, tapes or disks.

22. CLASSIFICATION OF SERVICES DR. AMITABH MISHRA 22
•Examples are-
•Accounting.
•Management consulting.
•Market research.
•Medical diagnosing.
•KPO’s and BPO’s

23. CLASSIFICATION OF SERVICES DR. AMITABH MISHRA 23
People
Processing
Possession
Processing
Mental Stimulus
Processing
Information
Processing
Tangible
action
Intangible
action
Passenger transportation.
Health care.
Beauty saloon/ Barbers.
Restaurant/Bars.
Lodging.
Funeral Services.
Freight transportation.
Repairer & Maintenance.
Warehousing and store.
Office cleaning services.
Laundry & dry cleaning

Accounting.
Banking.
Management consulting.
Data processing.
Market research.
Medical diagnosing.

Education.
Psychotherapy.
Music concert.
Entertainment.
Advertising.
News and Information.

24. CLASSIFICATION OF SERVICES DR. AMITABH MISHRA 24
DIFFERENCE BETWEEN BUYER,
CONSUMER, CUSTOMER.


•BUYER:- Buyers are those who buys goods and
services. All human beings are buyer.
•CONSUMER:- A consumer is one who consumes
goods and services. They include-human beings,
birds, trees, animals.
•CUSTOMER:- If the buyer repeatedly buy product
of one company, he will be called a customer of the
company