Five Offer Categories (Product Classification)

Philip Kotler and Kevin Lane Keller distinguish the following five product levels:

• Pure material goods - offer is made only by tangible goods (product) that isn’t accompanied by any service - e.g. soap, toothpaste, salt
• Predominant material goods with accompanying services - offer consists primarily of a product that is accompanied by a minor service (or retail services) - e.g. car accompanies services
• Hybrid - offer is made equally by products and services - e.g. high-end restaurant offers not only excellent food but also perfect service, music, bar and other facilities
• Predominant service with accompanying goods - the essence of offer is a service, accompanied by minor goods - e.g. basis of air transport is a service (transportation) accompanied by food, beverage, newspaper and magazines, film screenings, etc.
• Pure service - offer is made only by services - e.g. psychotherapy, massages, babysitting