• some businesses are set up solely to perform specific services for customers
  • Other businesses offer value- added services, which are activities performed to support the sale of a product or other service

Convenience

o   Means making some activity easier or more comfortable, and is a major reason why people shop on the internet

o   Customers do not like having to work to buy a product

Degree of service

o   Competition based on the degree of service offered is common

o   It might surprise you to learn, however, that service businesses also compete with one another by offering fewer value- added services

Selection

o   Offering a greater selection of services is another way service businesses compete

o   The selection can be wide, meaning that a store carries a large number of different brands or types of merchandise, or it can be deep, meaning that the store carries a large quantity f one specific product or type of product

Reputation

o   It is important for a service business to maintain a good reputation because it does not have a tangible product to show to the customer

o   Customers who have received food service may tell others about their experience

o   However, customers who have had bad service almost always share their experience with others

Price

o   Is a factor in both product and service competition

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