Frequently a service has been described as an act, a progress and a performance. More widely definition can described it as economic activities that create “added value” and provide benefits for customers or organizations.
The definition and scope of this idea is widespread and could mean all of the following:
- Service as an organization, that is the full business resides within the service sector.
- Examples: restaurant, insurance company
- Service as core product- the profitable outputs of a service organization.
- Examples: holiday, insurance service
- Service as a product augmentation – it is made to improve the core product.
- Example: special hairdresser's offer
- Service as a product support- here we can mention all customers oriented activities which take place after the delivery.
- Example: repair service
The main service industries are: hospitality, tourism, health services, education, financial
Even thought a lot of services contain some tangible aspects the service performance leading to a customer’s experience is intangible.
Services are some kind of processes. We can mention that customers take part in the production of service. Mostly in act of service there should be present in the same place and at the same time the buyer and the seller.
Because of intangible nature of services there cannot be stored, inventoried or re-used.
- Jo Bitner, M., Faranda, W. T., Hubbert, A. R., & Zeithaml, V. A. (1997). Customer contributions and roles in service delivery. International journal of service industry management, 8(3), 193-205.
- Kelley, S. W., Donnelly, J. H., & Skinner, S. J. (1990). Customer participation in service production and delivery. Journal of retailing, 66(3), 315-335.
Author: Weronika Winkowska