Marketing Management, 16th Edition

The Nature of Services

A service is an act that one entity performs for another that is essentially intangible and does not result in the ownership of anything. It may or may not be tied to a physical product. Increasingly, manufacturers, distributors, and retailers are providing value-added services, or simply excellent customer service, to differentiate themselves.

Services are everywhere. The government sector—with its courts, employment services, hospitals, loan agencies, military services, police and fire departments, postal service, regulatory agencies, and schools—is in the service business. The private nonprofit sector—museums, charities, churches, colleges, foundations, and hospitals—is in the service business. A good part of the