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4 Types of Service Processing

There are 4 types of service processing: tangible and intangible. Tangible processing involves physically moving people or objects, including 1) services involving people directly, like healthcare or transportation, and 2) services involving objects without the customer present, like repairs. Intangible processing occurs when results are difficult to measure or the process is intangible, including 3) mental stimulus services that only involve mental work, like education or movies, and 4) information processing services that only require processing information, like banking or research.

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Irshad Hussain
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0% found this document useful (0 votes)
414 views3 pages

4 Types of Service Processing

There are 4 types of service processing: tangible and intangible. Tangible processing involves physically moving people or objects, including 1) services involving people directly, like healthcare or transportation, and 2) services involving objects without the customer present, like repairs. Intangible processing occurs when results are difficult to measure or the process is intangible, including 3) mental stimulus services that only involve mental work, like education or movies, and 4) information processing services that only require processing information, like banking or research.

Uploaded by

Irshad Hussain
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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4 types of service processing – How to

categorize service processes?


In services, there is an input and an output. Both, the input and output can
be intangible in nature because of which service processing is said to be a
complicated process.

Most commonly, service input involves customers, and whatever customers


may possess. For example – while visiting the restaurant, the customer is the
input. On the other hand, in a laptop repair center, the laptop is the object and
is the input.

In both these cases, the output is tangible in nature. When you visit a restaurant,
you get food to fill your stomach. Similarly, in a laptop repair shop, you will
receive parts and repair service which is again tangible because you know the
changes made in the physical parts of the laptop.

However, several services are intangible in nature and the service processing
is intangible as well. An example is education consulting which is again a
service where the customer is the input. But the quality of consultancy given by
the consultant and the understanding of the same by the customer is intangible
in nature. Hence, the quality of service processing can vary between consultant
to consultant.

Thus, in general like any other service factor, there are two types of service
processing – Tangible and intangible. Here are 2 processes each under service
processing types.

Tangible service processing


Which involves physically moving people or objects.

1) Service processing involving people


Some of the most common types of service processing is the one involve
people. Health care, lodging, Passenger transportation, Fitness centres,
Haircutting salon are all examples of service processing involving directly the
end customer.

In this type of service processing, the customer needs to be present physically


for the service to be delivered.

2) Service processing involving objects


When the customer is not required to be present while giving the necessary
service, then it is a type of service process involving objects. Repair and
maintenance work, Warehousing, Recycling of waste, Laundry or dry
cleaning are procedures where the input is from the customer, but the
processing does not require the customer’s presence at all.

Again, objects are tangible in nature and hence this is a tangible type of service
processing. When you are shifting from one house to another, the material is
handled by the service provider, but your presence is not necessary.

Intangible service processing


Intangible service processing occurs when the net result is difficult to be
compared or the process is in general intangible in nature. The two types of
intangible service processes are as below.

3) Mental stimulus
In this type of service processing, there is only mental work involved. As this is
very difficult to be measured, it is classified as intangible.
Theatre performance is one such activity which can be intangible. In a theatre
performance, each of your performance will be perceived differently by different
customers. At the same time, this theatre performance can also be shown on
TV or it can be a radio reading.

Overall, the customer is not required to be present at all and not even an object
of the customer is required. He just needs to understand what is happening.
Advertising, movies, religion, Education are some of the examples which
require a mental stimulus. Physical exchange of objects or people is not
necessary.
4) Information processing
The last type of service processing occurs where information is being
processed and there is no other processing involved. So when you go to a bank,
the customer is an input and he wants to deposit cash to someone else’s
account. After the instructions are given, the processing involves basic
information processing thereby ensuring the transfer of money from the
customer’s account to the account number given by the customer. In this case,
neither customer nor the recipient is needed to be present. Only the information
is required. Hence it is information type of service processing.

Some examples of service processing where only information is processed


are Banking, KPO’s, Legal services, programming,website development,
Research and several others. In fact, since the rise of the internet, information
processing has become a big business.

Overall, there are the 4 types of service processing and a service business will
be either one of these types of servicing processing.

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