19. 6. 2013.
A service is the diametrically opposed non-material counterpiece of a physical good. A service provision comprises a sequence of activities that does not result in ownership of the outcome, and this is what fundamentally differentiates it from furnishing someone with physical goods.
Service provision is a process that creates predetermined benefits by
effectuating either a change of service consumers, a change in their
physical possessions or a change in their (in)tangible assets.
On the other hand, their investment in expertise does require consistent
service marketing and upgrading in the face of competition which has equally
few physical restrictions.
Most business theorists see a continuum with pure service on one terminal point and pure commodity good on the other terminal point. Most products fall between these two extremes.
For example, a restaurant provides a physical good (the food), but also
provides services in the form of ambience, the setting and clearing of the
table, etc. And although some utilities actually deliver physical goods —
like water utilities which actually deliver water — utilities are usually
treated as services.
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