Differences between goods and services

madugundurukmini By madugundurukmini, 4th Jan 2014 | Follow this author | RSS Feed | Short URL http://nut.bz/55ezb_pt/
Posted in Wikinut>Business>Selling A Business

A pure good implies that the benefits received by the consumer contain no element of service

The benefits received by the consumer contain no element of service

One can attribute a good to to be a noun and services to be a verb i.e., a good is a thing and services an act. A good is an object or a material whereas services is a deed on a performance when a good is purchased, the buyer acquires an asset and when a service is purchased the buyer incurs an expense. However, most goods carry some amount of services and most services require support goods.

It is extremely difficult to conceive of a pure good or a pure service. A pure good implies that the benefits received by the consumer contain no element of service. Similarly, a pure service would contain no goods element. In reality most services contain some goods element, such as the Pizza at Pizza Corner or the bank statement from the local bank. Also, most goods at least offer a delivery service, and firms are increasingly using services of all kinds to differentiate their goods from those of competitors. However, many service organizations (such as insurers, consultants, etc.) do not themselves as produces or sellers of goods. They see themselves a providers of services.

In general, there are very few goods or services -for example a car which is so tangible and can be considered a good is mainly into domain of transportation- which is services. If one looks at a car and only car as a tangible good, then he or she is prone to get into what Levitt termed as `marketing myopiai'.

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Comments

author avatar Fern Mc Costigan
6th Jan 2014 (#)

A well written and interesting post, kudos!

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