Here, a service providing concept means a global, not bound by time, coherent collection of strategic goals. In general, a division can be made between three service providing concepts:

• Self-service,
• Standard service, and
• Tailored service.

In essence, this is a division based on the added value of the concepts.

Self-service

A company adopting a self-service approach, can make the customer play an important role. The clients themselves can standardize the products and a direct marketing scheme can be used. Even though this may lead to an impersonal approach, it also enables the service provider to keep the prices down, which is an important asset in business.

Standard Service

Standard service can be implemented by an organization when the products or services that are offered are strongly standardized. This may be a consequence of scale, as providing a large quantity of products or services makes personalizing those a lot more difficult.

Tailored Service

A tailored service concept is mostly utilized by specialized providers. The ability to adapt each product or service to an individual client leads to a more personal approach, which is generally positively judged by customers. The downside, however, is that the price will reflect this extra effort, which in itself explain why specifically specialized providers are able and willing to use this approach.

Combinations and the Continuum

Of course, these three concepts can be used in combination by a company. Different departments can adopt a different concept, depending on the products or services they specifically offer. In addition, a customer can need different concepts in different situations and times.

The distinction between these three concepts is not always that clear, it is more like a continuum, going from self-service on one side to tailored service on the other, than like three distinct categories.

The Concept as Positioning Statement

Towards the potential customer, the service providing concept used by the company, functions as a global positioning statement, a first guideline in the orientation- and choice process. Not more than that, because at the level of the service providing concept, only the difference between types of competitors becomes obvious, not between specific competitors (hence ‘global’ positioning statement).

• A final remark: a service providing concept is not the same as a service providing formula. The difference lies in the abstraction level. Different providers can implement the same concept, but, based on that same concept, they can set up completely different service providing formulas.