Service – An action that is carried out to fulfil a need or demand in return for payment
To remember what service means, use the following mnemonic:
The butler must serve his (service) customers by fulfilling their demands in return for payment.
Unlike physical products, services are non-tangible, meaning that the customer is paying for an action to be carried out instead of a product they can hold. Services can range from a haircut to the designing of a rocket and anything in between. The service sector is also known as the tertiary sector, which is the largest part of a developed country’s economy.
Examples of industries and businesses which operate within the service sector include:
- Hospitality (such as the hotel chain Hilton)
- Travel and transport (such as airline Emirates or train and bus operator Arriva)
- Healthcare (such as the private healthcare operator HCA)
- Energy (such as energy provider EDF)
- Finance (such as HSBC bank or Vanguard investment advisors)
- Education (such as a university or private school)
- Information technology (such as Infosys who provide I.T services and outsourcing)
- Consultancy (such as Boston Consulting Group who provide management consultancy)
- Accounting (such as Price Waterhouse Coopers who provide accountancy services)