What Is Service

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A

service is an act or performance offered by one party to another. Although the process may be tied to a physical product, the performance is essentially intangible and does not normally result in ownership of any of the factors of production.
Services

are economic activities that create value and provide benefits for customers at specific times and places, as a result of bringing about a desired change in or on behalf of the recipient of the services, goods and sold, but which cannot be dropped on your foot.
According

to Witner, Services are deeds, action and performance. Deeds here are the activities done by the service provider, action is the steps taken in performing that activities and performance is the extent of satisfaction of consumer of that services.

Individual customers first noticed application of computers in fields such as bank statements in the late 1950s Use of computer in Airline reservations started in the 1960s. By the 1970s, the technology of transmitting data by telecommunications had become sophisticated enough to permit creation of ATM networks in retail banking. The 1980s saw the advent of personal computers, modems, and fax machines, enabling customers and businesses to contact each other in new ways. In the mid-1990s, the technological focus shifted to the Internet.

Behind the Internet and many other IT innovations lies the merger of two separate technologiescomputers and telecommunications. Five factors:

computing power Digitization of information increase in the capacity of telecommunications A miniaturization of hardware Advances in software, digital switching technology, and network architecture

It

shifts power from sellers to buyers by allowing conversations among customers through such mechanisms as chat-rooms and user groups. E-mails and the Web Webvan: Groceries from Cyberspace to Your Home or Office

Three

different categories of Web site can be identified, offering different levels of capability.
Publishing sites Databases and forms sites Personalization sites

Provider-Based

Revenue Models

Content sponsorship Retail alliances Prospect fees Syndicated selling

User-Based Revenue Models:

Limited consumer exposure and buying. Chaos and clutter. Security. Ethical concerns Consumer backlash.

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