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What is Service
Service is a work output or provided resources of provider which have a value for a customer. Services are products, i.e. the outputs of the production process, similarly goods. Services cannot be stored and cannot spoil.

Service in economics, management and daily life means provided resources or labor output of provider that has a value for a customer and brings an utility. Services are products, i.e. the outputs of the production process, similarly goods. Services cannot be stored and cannot spoil.

Philip Kotler and Kevin Lane Keller define a service as follows: “The service is any act of performance that one party can offer to another that is essentially intangible and does not result in the ownership of anything. Preparation of service may or may not be associated with the physical product”.

“In case of services a title does not transfer to the customer, but the subject remains the property of the provider. To the customer belongs only the result of provided service - thus the value, utility or experience “. (Source: Corset Framework, Book 2: Services)

The term service is also used in informatics:

Use of the service in practice: In management, service is used to encapsulate a responsibility for some field (see Service Oriented Management) and for communication with the customer. Service and its quality is what the customer appreciates and what he is willing to pay. Service-oriented management method is therefore strongly customer oriented and helps increase the value for customers.

In technical ICT concept the term service is used to encapsulate logic of application / software (see software service, web service).

Related terms and methods:

Related industry / sector:

Related management field:

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Other information and sources (International)
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Last update: 03.08.2016

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