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A set-in neck (often shortened to set neck) is the traditional form of joining the neck of a stringed instrument with its body. This is typically done with a tightly fitted mortise-and-tenon or dovetail joint, secured with hot hide glue. Among its qualities are a warm tone, long sustain, and a large surface area to transmit string vibration, leading to a "live" feeling instrument. In guitars it also often allows superior access to top frets closest to the body.
It is a common belief that this yields a stronger body-to-neck connection than an inexpensive mechanically joined bolt-on neck. There's also a third method, neck-through construction, which requires more material to provide an even stronger connection.
Set-in necks are the most popular method for acoustic guitars. Almost all major acoustic guitar manufacturers (but with exceptions) use set-in necks and have applied this method also to their electric guitars; most notably, Gibson and Gretsch. With hollow body set-in neck electric guitars of the 1940s being rather expensive to buy and repair, newcomer Fender in 1950 introduced electric guitars that were easier to manufacture, combining a simple solid body with a bolt-on neck. Fender also introduced the electric bass guitar by adding a longer neck bolted to a solid guitar body.