This P.P.T gives introduction about classification of services on different variables.

1. Classification Of Services
Service can be classified in several ways. Various
authors have tried to classify services on the
basis of different features /aspects such as the
market segments, tangibility factor ,skill type
, etc. They are enlisted below.
• Market segment
• Degree of tangibility
• Skills of the service provider

2. •
•
•
•
Goals of the service provider
Degree of regulation
Degree of labor intensiveness
Degree of customer contact
In India service sector contributes 60 % of the
GDP and 35 % of employment. Around 80 % of
India’s total exports are dominated by high
skilled services , such as software business
services and communication services.

3. Market Segment
Market Segment : Service can be classified on
the basis of market segment they are catering
to. Thus we can have service catering to end
consumers such as the hair salon and beauty
services , coaching classes and car wash services
and services catering to organizational
customers such as management consulting,
repair and maintenance services for machines
and legal services

4. Degree Of Tangibility
Service can be classified into tangible offerings
• Rental Goods ( Hotel Room, Car etc.)
• Owned Goods (T.V Repair etc.)
• Non –Good (College education )

5. Skills of the Service Provider
Service can be provided by highly skilled labour
and unskilled labour. Thus service can be
classified as
• Professional ( Legal, Medical , management
etc. )
• Non professional ( Taxi, security , shoe shining
, laundry , cleaning services etc.)

6. Goals Of The Service Provider
Service are differentiated on the basis of the
goals they pursue-whether they are profit
making or non profit making.
• Profit ( Airlines, Hotels , Insurance etc)
• Non-profit ( Indian Postal Service , NGO
, Public libraries , Religious Places etc.)

7. Degree Of Regulation
Service are also classified according to the
extent of government regulation on them.
High Regulation ( Airlines, Railways , and
Roadways etc.)
Limited Regulation ( Hospitality sector )
Absent Regulation ( Barber and Beauty Service
, Personal services, etc.)

8. Degree Of Labor Intensiveness
Services can be equipment based or people
based.
Equipment based services –
• completed automated services (ATMs , Coffee
Vending Machines etc.)
• Unskilled Operators (Movie theatre , Dry
cleaning etc)
• Skilled operator (Airlines , Crane machines
, Railways etc.)

9. People based Services
• Unskilled (Security Guards, Cleaning services
etc.)
• Skilled labor (Printing, catering etc.)
• Professionals (Lawyer ,Doctor ,Management
consultant , HR Consultant etc.)

10. Degree Of Customer Contact
Service is categorized on the basis of customer
contact
High Contact- Where customer spends time
, days , week , month , year like education and
hospitality services
Low Contact –Low contact service is one which
the contact with service system ranges from few
minutes to some hours like appliance repair
service, postal services etc.