Categories of Service Mix

As the previous examples show, services are often part of a company's total offering in the marketplace. Five categories of an offering's service mix can be distinguished:

1. Pure tangible good: The offering is a tangible good such as soap; no services accompany the product.

2. Tangible good with accompanying services: The offering consists of a tangible good accompanied by one or more services. General Motors, for example, offers repairs, maintenance, warranty fulfillment, and other services along with its cars and trucks.

3. Hybrid: The offering consists of equal parts of goods and services. For example, people patronize restaurants for both food and service.

4. Major service with accompanying minor goods and services: The offering consists of a major service along with additional services or supporting goods. For example, airline passengers are buying transportation service, but they get food and drinks, as well.

5. Pure service: The offering consists primarily of a service; examples include baby-sitting and psychotherapy.

An increasing number of companies that are known for their tangible goods offerings are now looking to boost profits from services. Consider General Electric, which built its business on the production of goods such as refrigerators and light bulbs. These days, its fastest-growing unit is GE Capital, which consists of 28 businesses ranging from credit cards to truck leasing to insurance. Germany's Siemens is moving in the same direction by setting up a financial services division as a profit center.5

Continue reading here: Characteristics of Services and Their Marketing Implications

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Readers' Questions

  • Goldilocks Took
    What are major distinctions among pure service,hybrid and service with accompanying goods firms?
    1 year ago
  • The major distinctions among pure service, hybrid, and service with accompanying goods firms lie in the nature of their offerings and the level of tangibility involved.
    1. Pure Service Firms: These firms primarily offer intangible services without any physical goods accompanying them. Examples include consulting firms, healthcare providers, banks, and insurance companies. These organizations focus on delivering expertise, advice, and assistance to customers.
    2. Hybrid Firms: Hybrid firms offer a combination of services and tangible goods. They provide a core service but also include physical products to enhance or support the service experience. For example, a software company may provide a software solution (service) along with hardware equipment to run the software (goods). Hybrid firms aim to provide a complete solution to meet customer needs.
    3. Service with Accompanying Goods Firms: In this type of firm, the provision of tangible goods is the main offering, but there are accompanying services to enhance the value and customer experience. Examples include automobile manufacturers that offer after-sales services, such as maintenance, repairs, and warranties. These firms understand that the customer's experience goes beyond the purchase of the physical product, and they aim to provide ongoing support.
    4. The distinctions among these types of firms also extend to the marketing strategies, customer expectations, and operational considerations. Pure service firms may focus more on building relationships, trust, and delivering excellent customer experiences. Hybrid and service with accompanying goods firms may emphasize both product and service features, requiring a well-integrated approach to marketing, distribution, and customer support.
    • VALTTERI
      What are the various categories (5) of the service mix?
      1 year ago
      1. Product - the actual goods or services being provided to the customer.
      2. Price - the fee the customer pays for the product or service.
      3. Place - the physical location of the product or service.
      4. Promotion - the marketing activities used to advertise and promote the product or service.
      5. People - the employees who provide the service and interact with customers.
      • Tori
        What are the five categories of offerings in the productservice mix?
        1 year ago
        1. Products: physical goods that are manufactured, distributed, and sold.
        2. Services: intangible activities that add value to a product or provide an experience for a customer.
        3. Place: the distribution channels and physical locations used to sell products and services.
        4. Promotion: the communication of information about products and services to potential customers.
        5. Price: the cost of offering the product or service, which may include discounts, rebates, and special offers.
        • cottar
          What are the various categories (5) of the service mix?
          1 year ago
          1. Product: Physical goods, services, and intangibles
          2. Price: Setting prices, discounts, and payment plans
          3. Place: Identifying and selecting distribution channels
          4. Promotion: Advertising, public relations, personal selling, and sales promotion
          5. People: Staffing, training, and managing personnel
          • amalio
            What are the 5 categories of service mix in marketing?
            1 year ago
            1. Product – the tangible goods and services that the company offers.
            2. Price – the amount of money customers pay for the company’s products or services.
            3. Place – the physical or digital location where customers can purchase the company’s products or services.
            4. Promotion – the advertising and marketing activities used to promote products and services.
            5. People – the people involved in providing the customer experience, from sales and customer service to technical support.
            • Alessandra
              What is tangible good with accompanying services?
              1 year ago
            • A tangible good with accompanying services is a physical good (such as a product or service) that also comes with additional services intended to enhance the customer experience. Examples of tangible goods with accompanying services include mobile phones, which often come with a service contract and related customer service, or a car rental, which typically comes with services such as roadside assistance and insurance.
              • ruth
                What is the differentiating goods and services, categories of service mix?
                1 year ago
              • Differentiating goods and services are those that have certain qualities or features that set them apart from similar products or services offered by competitors. Differentiating goods and services can include product design, brand name, customer service, pricing, or any other factor that makes the product or service unique. Categories of service mix include:
                1. Core services – These are the basic services that are included in the package.
                2. Supplementary services – These services are designed to enhance the core services and make them more valuable.
                3. Value-added services – These are additional services that are provided to make the customer experience more enjoyable or cost-effective.
                4. Complimentary services – These services are offered free of charge to add value to the service package.
                • basso
                  What are the categorises of srvice mix?
                  1 year ago
                  1. Product: Physical goods or services that a business produces or provides.
                  2. Price: The value of the product or service that the customer pays for.
                  3. Place: The points of sale or distribution of products and services.
                  4. Promotion: The marketing activities used to communicate with potential customers.
                  5. People: The customer service staff and other employees.
                  6. Process: The policies and procedures for delivering services.
                  7. Physical Evidence: Tangible elements that support the service experience.
                  • hallie
                    What are the categories of offerings in the service mix?
                    1 year ago
                  • The categories of offerings in the service mix typically include products, customer support, information management, billing, customer education, and customer experience. Additional categories may include marketing, distribution, research and development, management, and customer loyalty.