In: Economics
describe the characteristics of services and how they differ from goods. After reviewing these differences, including the expanded service marketing mix, prepare a new discussion thread addressing the following:
a) What do you see as the greatest challenge in providing quality service and why?
b) What do you see as the easiest difference to address and why?
services are output of individuals or may be machines which are not tangible. the evaluation of services is difficult as its a qualitative term and not quantitive in nature. as services are qualitative in nature these will not be transfered to the customers even if they are being soled. and the service amount doesnot reduce when more and more people buy it so its non rivalary but excludable. goods on the other hand are tangible, they have a specific price or quantitive value attached to it, they will reduce if one buys it and is rivalary and excludable as well. as production and consumption of services happens at the same time there is no inventory in case of services but in case of goods inventorys are there.
1) the greatest challenge in providing services is to know the exact preference of the customer or we can say exactly what they want is really important to know before providing service, because the quality of the service will be great only if it delivers what the customer needs other wise it will not be a quality one. as preferences and choices vary a lot customers to customers its necessary to know each persons choice and how they wants there to be.
2) the easiest difference here between goods and services is tangibility becuse goods can be touched but services can be feelt, goods can be transfered but services cant because goods are quantifyable but services are qualitative terms.