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Types & Classification of Services in Marketing

Services are intangible in nature and really difficult to standardise and classify. Classification of Services in Marketing can be done on the basis of their operations, level of tangibility, customer employee presence and relationship, and customization or empowerment. This classification of services will help students of MBA, MMS, PGDBM, BBA, MMS, PGDM, Mcom, Bcom, MCA and other management streams for exam preparation.

Classification of Services in Services Marketing

Following are the major types of services –

  1. Based on Service Operations
  2. Based on Level of Tangibility
  3. Based on Customer Employee Presence
  4. Customization or Empowerment

1. Classification of Services Based on Service Operations

We can classify service on the basis of class of service process.

Type 1: Whether the service has a people focus (e.g. banker) or equipment focus (e.g. ATM)

  • Class of service process: Professional
  • Example: Accountant
  • The volume of customers: Low


  • People focus
  • High contact time
  • High customization
  • High level of empowerment
  • Front office value-added

Type 2: Extent of customization (e.g., dental services tailored to meet the needs of individual clients)

  • Class of service process: Service Shop
  • Example: Bank, Hotel
  • The volume of customers: Medium


  • Process focus
  • People and equipment focus
  • Medium contact time
  • Medium customization
  • Medium level of empowerment
  • Front and back office value-added

Type 3: Source of value-added, i.e., is it front office (e.g., a beautician) or back office (e.g., a bank)?

  • Class of service process: Mass Service
  • Example: –
  • The volume of customers: High


  • Process and product focus
  • Equipment focus
  • Low contact time
  • Low customization
  • Low level of empowerment
  • Back office value-added
  • Product focus


We will update the full classification soon. Sorry for the inconvenience caused.

Books Referred

  1. Services Marketing, R. Srinivasan, Second Edition, Eastern Economy Edition, PHI
  2. Silvestro, R., Fitzgerald, L., Johnston and Voss, C., Towards a Classification of service Processes, International Journal of Service Industry Management, 3, 1992, pp. 62-75.