Why do intangible elements dominate value creation?
Answer: When people engage with services, there are more ways to create value then when simply obtaining a product, where value is benefit > cost. e.g. you buy a product on it's own there's limited value attached to that, however you attach service aspects such as: servicescape, nice employees, fast delivery/service; all of these elements act to gain extra-value that the product alone can't provide.
-Services allow you to attach more value-creating elements then what products can provide alone.