- 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
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
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
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
o Is a factor in both product and service competition
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