Definition

Services can be classified according to target market, ownership, degree of tangibility, relationship duration, and delivery mode.

Introduction

Not all services behave alike. A hospital, a bank, and a movie theatre serve different expectations. Categorizing services helps marketers tailor strategies for design, pricing, and promotion.

Explanation
Category Basis Type Examples
Customer Type Consumer Services / Business Services Hair salon / Consulting firm
Ownership Public / Private / Non-profit Railway / Private Bank / NGO
Tangibility Level Equipment-based / People-based ATMs / Personal Training
Relationship Continuous / Discrete Insurance policy / Movie ticket
Delivery Mode Face-to-Face / Remote / Digital Restaurant / Call center / Streaming

This classification clarifies resource allocation, automation potential, and customer-contact intensity.

Key Takeaways

No single service strategy fits all categories.

Degree of human contact influences cost and quality control.

Digital convergence blurs boundaries between B2B and B2C.

Real-World Case: LinkedIn Premium

LinkedIn serves both jobseekers (B2C) and recruiters (B2B) through tiered subscriptions—illustrating dual classification within one platform.
Reference: https://www.linkedin.com