Difference Between Goods And Services

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Differentiating Between Services and Goods
Good and services are products which are sold by a company to meet a consumer’s needs. They are the tangible and intangible things that we benefit from in our everyday life. Whether durable goods such as a car that we drive to work in, or the service that our garbage man provides, we are surrounded by products and services we purchase that drive the economy. This paper will describe the differences between goods and services and how technology is changing the nature of customer service and service offerings.
Goods and Services Defined Goods are products that have “…tangible attributes that a consumer’s five senses can perceive” (Hartley & Kerin, 2016). “Services are intangible activities or benefits
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Intangibility simply means that you cannot look at or feel a service to determine it’s worth or value before it is purchased. For example, a therapist provides a service, but it would be difficult to impossible to test this before a purchase. Inconsistency is the understanding that what you purchase may be different each time it is used. For example, therapy services may be different from one week to the next, but am iPad, which is a good is likely to be consistent each time you purchase the exact same model. Inseparability is that the service and the service provider are one in the same. Inventory is the cost of goods not sold that create cost. Services typically have idle service providers. (Hartley & Kerin, …show more content…
It seems possible that the advancement of technology is perhaps responsible for the significant increase in the percentage contribution to the overall GDP. Hartley & Kerin indicate that in 1975 goods and services contributed equally to GDP. (Hartley & Kerin, 2016) This is around the time that he personal computer began to become used. With the advancement of technology, it is possible that available services became greater in number.
Technology has been the key driver in major transformation in how customers are serviced. Immediate availability to greater amounts of customer information provide the opportunity for customers to receive quick, reliable, and customized service. Technology advancements have also provided customers with the opportunity to choose how and when they would like to receive service. Customers may choose to use the traditional options such as personal interaction with a bank teller; they may use telephone options such as telephone banking; or they may choose online servicing such as many banks and insurers offer today. Customers can open bank accounts, purchase insurance, file a claim, and even apply for a loan, all online. Online also offers company assisted servicing through means such as a chat service. The quality of the services being offered has also been greatly enhanced. An example of these is how UPS provides customers with the ability

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