Differences between Goods and Services
are tangible. You can see them, feel them, touch them etc.
are intangible. The result of human or mechanical efforts to people or objects.
Major distinguishing characteristics of Services:
-major component of a service is intangible
-many cannot be stored for future sales Airline/Amusement ride Number of hair cut hours in one week: i.e., if Christies employs 3 people, who work fortyhours per week, they have potentially 120 hair cut hours to offer. If they do not have anycustomers at a particular period during the day, they will lose the opportunity to cut hair at that time
and therefore the opportunity to generate revenue
...the opportunity has perished...they no longer have the ability to earn revenue from 120 hair cut hours thatweek!!
-customer contact is often the integral part of the service...Legalservices/hair dresser, therefore often a direct channel of distribution.
-in service quality, lack of standardization, because services are labor intensive.Sales of goods and services are frequently connected, i.e. a product will usually incorporate atangible component (good) and an intangible component.Return to Contents
Levels of Product
There are 3 levels of products
- Marketers must first define what the core BENEFITS the product will provide the customer.
-Marketer must then build the actual product around the core product.May have as many as five characteristics:
Packagingall combined to carefully deliver the core benefit(s).
-offer additional consumer benefits and services.