Services are indeed intangible; that is, their processes create value for customers by performing transformations that do not result in a physical entity (product). Simultaneous production and consumption is a critical characteristic of services because it means that the customer may be in the production system while production takes place. Processes that require the presence of or interaction with the customer are front office service processes. Back office services, in contrast, can be performed separately from their consumption by the customer and, therefore, do not have to accommodate interaction with the customer.

Discuss the concept of Service-Product bundle.