The different types of service processes are as follows:
People Processing Services
As the name suggests, people processing services are directly targeted at individuals. Here, the customers need to physically enter the service environment to avail the service that he desires.
An example of this is Airlines, where the service is created and delivered through a combination of people or technology (or both).
It is also possible that the service provider may reach the customer along with the required tools for delivering services. The idea is to create a new set of values for the customers in the service industry.
For example, banking services are offered by personally visiting the office or residence of the customer and completing the transactions and other services desired by the customer.
Product Processing or Possession Processing
In product or possession processing services, the involvement of the customer in the service is comparatively less.
Here, the role of the consumer is typically limited to calling the service provider for explaining the problems faced by him and making the necessary payment for the service.
The pre and post-sales services involved here are problems that need to be tackled through customer response management.
The marketer needs to understand the entire value chain of such services, as these can add a lot of value to the customer experience.
For example, the logistics partner needs to understand how important his services are to the exporter in executing his orders on time.
The customer usually gauges the performance of the service in terms of delivery against the promised parameters of quality and time.
The marketer, therefore, needs to take care that there is no divergence between what has been promised to the customer and what is actually delivered.
Mental Stimulus Processing
The kinds of services that get listed under this type are entertainment, education, and management consultancy services.
It can also include various religious services offered by spiritual gurus and societies. This has a profound impact on the mental makeup of the consumer and helps to shape his attitudes, interests, and opinions.
The relationship between the marketer and the consumer can be considered to be one of dependence where the customer; is dependent on the service provider.
However, this can lead to malpractices like extortion, manipulation, and other unethical practices. In order to avoid these problems, organizations need to develop a code of conduct and ethical standards, communicating the same to the customer.
Information Processing Services
In the case of information processing industries, the marketer needs to learn that the ‘information’ is the most intangible type of service output.
It is crucial for both customers as well as a competitive perspective. The ease of access and retrieval of information has made it possible for consumers to seek information on as wide topics as medical research, accounting, legal issues, insurance, etc.
The customer has a very high involvement in all these situations as the perceived risk in all these situations is quite high.
The risk associated here, as per the customer’s viewpoint, is a highly risky service situation with huge financial and non-financial costs.
The customer tends to avoid going to the service factory to buy the products & services. The challenge before the marketer is to motivate the consumers to purchase the product and hence reduce the risk perception that consumers have of the service situation.