Tertiary sector of the economy

The tertiary sector of the economy, generally known as the service sector, is the third of the three economic sectors of the three-sector theory, (also known as the economic cycle). The others are the secondary sector (approximately the same as manufacturing), and the primary sector (raw materials).

Product's lifecycle

The service sector consists of the production of services instead of end products. Services (also known as "intangible goods") include attention, advice, access, experience, and affective labor. The production of information has been long regarded as a service, but some economists now attribute it to a fourth sector, the quaternary sector.

The tertiary sector of industry involves the provision of services to other businesses as well as final consumers. Services may involve the transport, distribution and sale of goods from producer to a consumer, as may happen in wholesaling and retailing, pest control or entertainment. The goods may be transformed in the process of providing the service, as happens in the restaurant industry. However, the focus is on people by interacting with people and serving the customer rather than transforming the physical goods.