Clarify the differences among the four broad categories of services, provide examples for each, and explain

the service management challenges related to each of the four categories.

There are major differences among services depending on what is being processed. Services can “process”
people, physical objects, and data, and the nature of the processing can be tangible or intangible. Tangible
actions are performed on people’s bodies or to their physical properties. Intangible actions are performed on
people’s minds or to their intangible assets. The classification of services into four broad categories. They are
people-processing, possession-processing, mental stimulus processing and information processing.

Name of the Service Name of the Service Act

Act People Possessions

People Processing Possession Processing

(Services directed at people’s bodies): (Services directed at physical possessions):
Tangible Actions • Passenger transportation • Freight transportation
• Health care • Repair and maintenance
• Beauty Salons • Warehousing

Mental Stimulus Processing Information Processing

(Services directed at people’s mind): (Services directed at intangible assets):
Intangible Actions • Advertising/PR • Accounting
• Art’s and entertainment • Banking
• Broadcasting • Insurance

People Processing

➢ The action/work/service do on direct on people body, with equipment and without equipment.
➢ A physical location where people or machines/ both, create and deliver service benefits to customers.
➢ In People Process services customer must prepare for co-ordination with the service operator, for example,
Hair cutting, customer must follow instruction given by hair cutter. Follow the instruction given by doctor
during the check up patient body.
➢ Time required of customers in people processing services varies widely. Customer satisfied after completed
services to reach his/her destination, satisfied his hunger or is now sporting clean and stylishly cut hair or has
a good night’s sleep away from home or is now in physically better health.
➢ Example of people processing
• Passenger transportation
• Health care
• Beauty salons
• Fitness centers
• Restaurants

Possession Processing

➢ The service directed at physical possession (work/action/service do on customer’s physical good’s).

➢ Customers are less physically involved with this type of service.
➢ Example of Possession Processing
• Freight transportation
• Repair and maintenance
• Warehousing
• Refueling
• Disposal
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Mental Stimulus Processing

➢ The work/activity/service with effect human mind. (Intangible)

➢ In this service customer must investment of time and mental effort.
➢ It can be inventoried. For example, customer’s favorite movies/songs download from source and can store
in their own gadgets and use it when they want.
➢ Example of Mental Stimulus Processing
• Advertising/PR
• Art’s and entertainment
• Broadcasting
• Education
• Religion

Information Processing

➢ Information is the most intangible form of service output, but it may be transformed into tangible forms such
as letters, reports, books, CDs or DVDs.
➢ That are highly dependent on the effective collection and processing of information are financial service and
professional services such as accounting, law, marketing, research and management consulting.
➢ Example of information processing
• Accounting
• Banking
• Insurance
• Programming
• Research

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