What are the criteria of classifying the services?

Services can be classified based on various criteria to understand their unique characteristics and manage them effectively. The key criteria for classifying services include:

1. Nature of Service Process: Services can be classified as people processing, possession processing, mental stimulus processing, or information processing, depending on the nature of the service delivery.

2. Customer Involvement: Classifying services based on the level of customer involvement helps differentiate between high-contact and low-contact services. High-contact services involve significant interaction between the service provider and the customer, such as healthcare, while low-contact services have minimal customer involvement, like automated online transactions.

3. Degree of Tangibility: Tangible services involve a physical product along with the service (e.g., a meal at a restaurant), while intangible services lack a tangible component (e.g., consulting or counseling).

4. Customization: Services can be classified as standardized or customized based on the level of personalization and flexibility in meeting individual customer needs.

5. Service Delivery Location: Classifying services based on where the service is delivered helps distinguish between on-site services (e.g., hotels, restaurants) and off-site services (e.g., online consulting, telecommunication services).

6. Time Dependency: Some services are time-dependent, requiring simultaneous production and consumption (e.g., live performances), while others are time-independent (e.g., recorded music, software).

Understanding these criteria helps businesses tailor their strategies to the unique characteristics of the services they offer, improving service quality and customer satisfaction.