Service

Service is a broad term that refers to the act of helping or doing work for someone. It is a transaction in which no physical goods are transferred from the seller to the buyer. The benefits of such a service are held to be demonstrated by the buyer's willingness to make the exchange.

Definition

A service is an economic activity where an immaterial exchange of value occurs. When a service such as labor is performed the buyer does not take exclusive ownership of that which is purchased unless agreed upon by buyer and seller. The benefits of such a service, if done well, are held to be demonstrated by the buyer's willingness to make the exchange.

Types of Services

Services can be classified into three categories: business services, social services, and personal services.

Business services are services that are primarily sold to organizations. Examples include accounting, IT services, and legal services.

Social services are services provided by the government or non-profit organizations to improve the living conditions of certain individuals or groups. Examples include healthcare, education, and social work.

Personal services are services that are primarily sold to individuals. Examples include hairdressing, tourism, and retail.

Service Quality

Service quality is a measure of how well a delivered service matches the customer's expectations. Service quality can be related to service potential (for example, worker's qualifications); service process (for example, the quickness of service) and service result (customer satisfaction).

Service Industries

The service sector is the third of the three economic sectors of the three-sector theory. The others are the secondary sector (approximately the same as manufacturing), and the primary sector (raw materials).

See Also

• Service economy
• Service system
• Service provider
• Service design
• Service management

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