The diversity of the service sector makes it difficult to come up with managerially useful generalizations concerning marketing practice in service industry, but IT and the Internet are causing fundamental changes in the economics of service industry. The Internets influence in creating e‐services has been revolutionary for providers and their customers. This paper argues for a focus on specific categories of services and proposes a two‐dimensional model for classifying services in ways that transcends narrow industry boundaries. This model has been developed using non‐metric discreet attributes and contains examples of services that fall under different groups.
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