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For referral-service entrepreneurs-who act as a “welcome wagon” to newcomers-getting to know new as well as existing businesses pays off in more ways than one. Local companies pay to get their services introduced to newcomers, while these new customers pay for a little friendly advice.
Most modern business theorists see a continuum with pure service on one terminal point and pure commodity good on the other terminal point. 2 Most products fall between these two extremes. For example, a restaurant provides a physical good (the food ), but also provides services in the form of ambience, the setting and clearing of the table, etc. And although some utilities actually deliver physical goods â€” like water utilities which actually deliver water â€” utilities are usually treated as services.