Package delivery company UPS uses distinctive brown trucks that have become almost an icon. Explain why such physical facilities are important for UPS while it provides package delivery services.
Answer: Services are intangible. But when they are given a tangibility by using physical facilities, equipment, personnel, or communication material, customers find it easier to determine the service quality and distinguish the services of one firm from that of its competitor. Thus, UPS's trucks help the company differentiate its services from its competitors'.