Chapter 13: Services- The Intangible Product
Any intangible offering that involves a deed, performance, or effort that cannot be physically possessed.
By providing good customer service, firms add value to their products and services.
Economic Importance of Service
Economies of developed countries such as of the United States have become increasingly dependent on
services. Services account for nearly 80 percent of the U.S. gross domestic product (GDP), a much higher
percentage than was true 50, 20, or even 10 years ago. Remind students about how environments influence
marketing. As economic, technological, and sociocultural environments change, so do demands for
Services Marketing Differs from Product Marketing
Services cannot be touched, tasted, or seen.