Understanding Services: Concepts, Classification, and Trends

Service Concept

A service is an intangible activity, which cannot be stored, and is produced and consumed simultaneously. It provides value to customers by meeting needs, solving problems, or improving the quality of life. Unlike tangible goods, services are often associated with the interaction between the provider and the consumer.

Service Classification

Services can be classified in many different ways, depending on the chosen criteria. Some common classifications include:

By Nature:

• Personal Services: such as healthcare, education, consulting.
• Business Services: such as transportation, finance, accounting.
• Public Services: such as security, public health, public education.

By Level of Customer Contact:

• High Customer Contact Services: such as hairdressing, car repair.
• Low Customer Contact Services: such as postal services, telephone services.

By Tangibility:

• High Tangibility Services: such as restaurants, hotels.
• Low Tangibility Services: such as financial consulting, insurance services.

Current Service Trends

The service market is developing rapidly with many prominent trends:

• Service Digitalization: applying digital technologies to automate processes, improve efficiency, and enhance customer experience.
• Service Personalization: focusing on meeting the individual needs of each customer.
• Sharing Economy Services: business models based on sharing assets and services.
• Focus on Customer Experience: prioritizing customer experience, creating satisfaction and loyalty.
• Development of Sustainable Services: focusing on environmentally and community-friendly services.

Conclusion

Understanding the concept, classification, and trends of services is essential for both providers and consumers. Grasping these trends will help businesses adapt and thrive in an increasingly competitive environment.