Understanding Services: Concepts, Classifications & How to Choose the Right One

Service Concept

A service is an intangible activity provided by one party to another. Services fulfill customer needs or wants, and often involve direct or indirect interaction between the provider and the recipient. Unlike goods, services cannot be owned or stored.

Service Classification

Services are classified in various ways, depending on the chosen criteria. Some common classifications include:

By Nature of Contact:

• Direct Contact Services: Such as healthcare, education, restaurants, hotels…
• Indirect Contact Services: Such as postal services, delivery services, online banking…

By Customer Type:

• Personal Services: For individuals, such as haircutting, spa treatments…
• Business Services: For businesses, such as consulting, accounting…

By Tangibility:

• High Tangibility Services: Easily visible and assessable quality, such as restaurant and hotel services…
• Low Tangibility Services: Difficult to assess quality before use, such as consulting and repair services…

How to Choose Good Services

Service Quality: Research previous customer reviews and consider the provider’s experience and reputation. Good service quality is demonstrated through professionalism, dedication, and efficiency.

Reasonable Price: Compare prices from different providers to find a price that suits your budget. However, don’t focus solely on low prices; consider the accompanying service quality.

Customer Feedback: Reading previous customer reviews and feedback will give you a more objective view of the service provider’s quality.

Clear Contract: Ensure you understand the contract terms before signing. A clear contract will protect your rights.

Customer Support: A good service provider will have a dedicated customer support team ready to answer your questions.

Conclusion

Choosing the right service is crucial for both individuals and businesses. Understanding the concept, classification, and how to choose good services will help you make informed decisions and save time and money.