Question

Write a 500-750-word paper that identifies the major characteristics of services compared with goods, and describe how technology is changing the customer service and service offerings.

the two key components that we need to make sure we include are to fully discuss tangible and intangible and the 4 I’s of service.

Each "I" needs to be discussed and not just mentioned as it is a critical component of the differences in goods vs. services.

Answer 1

Answer:

The major characteristics of services compared with goods:

There is a major difference between goods and services based on both tangible as well as intangible factors.

(a) Tangibility:

Goods are basically tangible objects that are manufactured, stored, transported, marketed and sold, whereas, services are output of individuals and they can be a collective or individualistic action or performance by an individual.

for example

goods can be stationary, laptops, clothes,etc,

whereas services can be services of a chartered accounted, airlines is a service, as the passenger or the consumer is using the service of the airline to travel from a place to another.

Thus the difference between goods and services is based on tangibility.

Goods are tangible in nature and

services are mostly intangible.

(b) Intangibility:

Goods can be touched, seen and owned, whereas services cannot be touched or seen.

For example:

in a restaurant, the dish can be measured, but the efforts gone in making the same dish by two different chefs cannot be measured from the customer end.

Same goes for large service corporates like Accenture and Infosys.

The time and effort gone for giving service to the customer is intangible.

The four key characteristics of service businesses are:

• Intangibility, (explained above)
• Inseparability,
• Perishability, and
• Variability

(1) Intangibility:

Unlike products, services cannot be held, touched, or seen before the purchase decision therefore, they should be made tangible to a certain extent.

Marketers should “tangiblize the intangible” to communicate service nature and quality.

Insurance is a guarantee against risk and neither the risk nor the guarantee is tangible.

Insurance rightly come under services, which are intangible.

Efforts have been made by the insurance companies to make insurance tangible to some extent by including letters and forms

(2) Inseparability:

Services are produced and consumed simultaneously.

Consumers cannot and do not separate the deliverer of the service from the service itself.

Interaction between consumer and the service provider varies based on whether consumer must be physically present to receive the service.

In insurance sector too, the service is produced when the agent convinces the consumer to buy the policy and it is said to be consumed when the claim is settled and the policyholder gets the money.

In both the above cases, it is essential for the service provider (agent) and the consumer (policy holder) to be present.

(3) Perishability:

Services cannot be stored for later sale or use. Hotel rooms not occupied, air line seats not purchased, and school places not filled cannot be reclaimed.

As services are performances they cannot be stored. If demand far exceeds supply it cannot be met, as in manufacturing, by taking goods from a warehouse.

Equally, if capacity far exceeds demand, the revenue and/or value of that service is lost.

(4)Variability:

services , unlike products/goods are produced and consumed simultaneously which brings variability in the service performance.

for example:

within a hotel, one employee's service might be courteous and humble, other might be arrogant, even a single employee can provide different kind of service during the course of the day

Technology is changing the customer service and service offerings:

Technology is changing services and service offerings at a very fast pace.

Unlike before the customer can reach any business from a variety of means now, like mail, call, social media, live chat, etc.

unlike before service quality has to be maintained and improved via all these communication modes.

technology has also made the consumer more aware, leading to the consumer having a better knowledge of what he wants and what can be provided hence in service offerings there is no hiding place.

hence, with the advent of technology, services have to adapt to more aware customers and more means of fulfillment of the services

hence, both customer services and service offerings have become easily accessible to the consumer and more streamlined and refined so as to please the customer.