Discuss classification of services

There are different ways in which classification of services is done. Services are bought differently by different buyers in different ways. The presence of a buyer is sometimes needed and sometimes not. Similarly, the service can be provided by the seller or by an equipment/ machine.

1) People based and Machine based services –
A service can be provided through a human or even a machinery. People based service refers to the presence of a human being with skills in providing the service. For example, a doctor needs to be present with the patient. Similarly, a carpenter, cobbler, mechanic, barber, etc. fall under people based services category.

Equipment/ machine based service is provided by automated machines like robots doing car wash, vending machines, etc. The presence of the seller is not required.

2) Consumer services and Industrial/ Business services –
Consumer services are provided to end users and households. The users of these services are individual buyers and households in consumer market. Hotels, motels, healthcare, Life insurance, entertainment, repairs, personal banking, education, amusement, personal security, etc.

In Business services, a number of services are provided for production, distribution, maintenance and marketing of tangible as well as intangible products. These services are provided to firms involved in production of products for end users. Advertising, engineering, consultancy, market research, warehousing, transportation, training, human resources, market research, etc.

Many services like financial, transportation, consultancy, engineering, hotel, food, etc. are sold and provided to both consumer as well as business markets. We can say that both the markets are provided same kind of services to a large extent.

3) Buyer’s presence and Buyer’s absence –
There are services that can be provided only in the presence of the buyer like a haircut, manicure, beauty, hospital, education, fitness, massage, etc.

Certain services don’t require the presence of the buyer of that particular service. For example, car repairs, gardening, courier, market research, promotion services, etc.

4) Services for Non-Profit and Services for Profit –
There are services from individuals as well as organisations that are inclined towards social cause and not economic gains. Some examples are NGO’s in different fields like education, veterinary doctors offering services free of charge for stray animals, animal shelters, etc.

Services which are offered for economic gains fall in the “Services for profit” category. For example, entertainment, tourism, housekeeping, etc.