Service – An action that is carried out to fulfil a need or demand in return for payment

(Pronounced ser-vis)

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 intangible, meaning that the customer is paying for an action to be carried out instead of a product they can hold. Services are intangible because they can not be seen, tasted, felt, heard or smelt before they are purchased.

Services can range from a haircut, travel, freight forwarding, insurance, repair, consulting, computer software, investment, banking, education, healthcare to name but a few.

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)