What Is Service? Meaning, Characteristics and Types

“Services are activities, benefits or satisfaction which are offered for sale or provided in connection with the sale of goods”. - The American Marketing Association 

Services are separately identifiable activities that satisfy customer needs or wants through essentially intangible benefits, either in their own right or as a significant element of a tangible product.

A service is something that meets a need or fulfils a demand.

CHARACTERISTICS OF SERVICES

• Services are, by definition, intangible. 
• They are produced and consumed simultaneously, meaning the service provider and customer must interact directly. This makes the delivery process a critical part of the service experience.
• Services cannot be stored for future use, leading to a loss if not consumed when available.
• Quality may vary depending on who provides it and how it is delivered, making consistency a challenge.
• Services often require active participation from customers, influencing the overall experience. 
• Each service is unique. It can never be exactly repeated as the time, location, circumstances, conditions, current configurations or assigned resources are different for the next delivery, even if the same service is requested by the consumer.

TYPES OF SERVICES

Services are diverse and can be classified into several categories based on their nature and purpose. 

• Personal Services
• Professional Services
• Business Services
• Government Services
• Customer Services

PERSONAL SERVICES

• Personal services address the specific needs of individuals, ensuring a personalized experience. 
• Examples like healthcare and education support physical well-being and intellectual growth, directly impacting quality of life.
• Services such as beauty treatments or personal coaching help enhance confidence and achieve personal goals.

PROFESSIONAL SERVICES

• It serves the business market, the individual market, and both market segments 
• These services are crucial for managing legal, financial, and health matters.
• This service is categorized by advisory and problem solving. 
• Provided by a qualified professional known for their speciality, include assignment requested by the clients. 
• Professionals ensure precision in their work, making these services dependable for critical decisions and outcomes.
• Professional service providers are independent and do not depend on any supplier

BUSINESS SERVICES

• Business services help companies optimize their operations and improve productivity. 
• These services cater to unique business requirements across industries. 
• Services like logistics ensure smooth functioning by managing supply chains and transportation needs.

GOVERNMENT SERVICES

• Government services aim to improve societal well-being by offering essential support and infrastructure to citizens. 
• These services maintain order and accessibility for all.
• Government services address large-scale needs, fostering economic development and social equity.

CUSTOMER SERVICES

• Customer services aim to enhance the user experience by addressing concerns and providing quick solutions. 
• These services improve brand loyalty and trust.
• Businesses use customer feedback from these services to refine products and services, meeting expectations more effectively.