c




 c


 





c

c 
 

Y

Y Y Y Y Y Y Y
Y
YY
   Y Y Y Y YYYYY Y YY Y
YYYYYYYYYYYYYYYYYYYYYYYYYYY Y Y YY Y Y Y
Y
Y Y Y Y Y Y YY YYYYYY   !""Y
Y
Y

Y




Y
YYYYYYYYYYYYÊ
ÊÊÊ  


Ê
 

c !"#$ "%#
&

##'&" ((  
 )*

&&!"*& !"'*



 
 +  c $  $,$

+$
-.

c&'/"%"/ & &0)1&'%/1,!"222%"/ & &%)YY

&34...'4...5

Y
QUESTION: Review each of the different ways in which service can be classified. How would
you explain the usefulness of each framework to managers?

SOLUTION:

A service can be classified on the following basis:

’Y lassification by industry

’Y lassification based on nature of service

’Y lassification by skill level of service provider

’Y lassification by degree of customer contact

’Y lassification by labour intensiveness

V


Traditionally, service can be distributed according to industry in which service provider is

providing their services. It can be categorized as follows:

ËY Entertainment

ËY Education

ËY Telecommunication

ËY ?inance

ËY Transportation

ËY ×ublic utilities

ËY ÷overnment industry

ËY Health industry

ËY Hospitality industry

ËY Vusiness services
V







Service can be classified according to the nature of service i.e. service processes used to bring
the service to customer who is as follows:

ËY ×eople ×rocessing: In this type of services, the customer is physically present in the
service system and there is need of interaction and cooperation among service providers
and customers. E.g.: barbers and health care etc.

ËY ×ossession ×rocessing: In this type of service, there is very limited contact among
customers and service provider and customer ask a service provider to provide treatment
to physical possession. E.g.: repair and maintenance, laundry etc.

ËY cental Stimulus: In this type of service, the main involvement of mind of service
provider is there in some way. E.g.: educational, physiotherapy etc

ËY Information ×rocessing: The services that is highly dependent on collection, processing

and analyzing of information. E.g.: consultancy services, accounting and low etc.

V






On the basis of skills of service provider, it can be categorized as follows:

ËY ×rofessional: The services in which there is need of some professional degrees. E.g.:
lawyer and doctors etc.

ËY Non- ×rofessional: The services in which there is not any need of some professional
degrees. E.g.: transportation etc.

V








The degree of customer contact in service helps in its classification which is as follows:

ËY High ontact Services: The services in which there is high degree of contact among
customers and service providers. E.g.: mobiles etc.

ËY cedium ontact Services: The services in which there is medium degree of contact
among customers and service providers. E.g.: barber etc
 ËY Low ontact Services: The services in which there is low degree of contact among
customers and service providers. E.g.: doctors etc

V

V


According to investment of money in either labour or equipments, service can be classified as

follows:

ËY ×eople Vased: The services in which there is more labors than the capital investment.
E.g.: Electrician, plumbers etc

ËY Equipment Vased: The services in which there is more investment in equipments than the
labors. E.g.: hotel etc

The manager has to review all the frameworks to use its in providing their services in best way
i.e. more effective and efficient manner. This review helps in the following way:

VY àesigning the service factory

VY Use of alternative channels for service delivery

VY Valancing supply and demand of service

VY àecide the marketing mix

VY hoice of marketing techniques

VY Identify new emerging services

The review of each framework helps the manager to design its service factory according to types
of services it provided. It helps in taking decision on service environment for attracting and
retaining the customers. The design should be in such way that service provides with maximum
efficiency.

It also helps in deciding the types of channel for service delivery whether direct service or use of
intermediary etc.
This review also helps the managers to match the unfulfilled demand with the supply of services.
It is totally different from products because service is intangible and cannot be stored.

àeciding the right marketing mix is an important application for a manger of this review. Vy
analyzing the above classification, a manager can decide about the design of service, pricing of
products and way of communication etc.

It also helps in deciding the right marketing techniques for segmentation, targeting and
positioning the service for survival in the market and facing the competition.

It also help in identifying the emerging services in the economy which can be exploited by
mangers as opportunities.