Understanding Services: Concepts, Classifications, and Trends

Service Concept

A service is an intangible, non-physical activity provided to customers to meet their needs. Unlike goods, services cannot be owned or stored. Service quality depends heavily on the interaction between the provider and the consumer. Customer satisfaction is the most important measure of a service’s effectiveness.

Service Classification

Based on Nature:

Consumer Services: Targeted at individual consumers, such as food services, beauty services, and tourism.

Business Services: Targeted at businesses, such as accounting services, management consulting, and insurance.

Based on Customer Contact:

High-Contact Services: Require direct interaction between the provider and the consumer, such as healthcare and education.

Low-Contact Services: Little or no direct interaction, such as courier services and online services.

Based on Product Characteristics:

Tangible Services: The results can be seen or felt, such as car repair.

Intangible Services: Difficult or impossible to see or feel before use, such as financial advice.

Current Service Trends

Digital Technology: The development of digital technology is drastically changing the service industry, creating new business models such as the sharing economy (Uber, Airbnb), e-commerce, and online services.

Service Personalization: Customers increasingly want personalized services that meet their specific needs.

Focus on Customer Experience: Creating a positive customer experience is crucial for attracting and retaining customers.

Sustainability and Social Responsibility: Customers are increasingly concerned about the sustainability and social responsibility of service providers.

Growth of Digital Platform-Based Services: Digital platforms such as mobile apps and websites are making it easier than ever to provide and access services.

Increasing Competition: To survive and thrive, service businesses need to constantly innovate, improve service quality, and create differentiation.

The development of Artificial Intelligence (AI) in customer service: AI is being widely used to automate tasks, provide 24/7 customer support, and personalize customer experiences.