Discuss the differences between services and goods. Services are distinguished by four characteristics. Services are intangible performances in that they lack clearly identifiable physical characteristics, making it difficult for marketers to communicate their specific benefits to potential customers. The production and consumption of services occur simultaneously.
Services are heterogeneous because their quality depends on such elements as the service provider, individual consumer, location, and so on. Finally, services are perishable in the sense that they cannot be stored or saved. As a result, synchronizing supply with demand is particularly challenging in the service industry.
1. Assume that you are a manager of a bank branch. Write a list of the implications of intangibility for your firm.
2. Over 25 years ago, Tim and Nina Zagat began publishing leisure guides containing reviews of restaurants. Today, the renowned Zagat guides still contain reviews of restaurants, but they also rate hotels, entertainment, nightlife, movies, shopping, and even music. Go to www.zagat.com. In your opinion, are Zagat survey guides goods or services? Explain your reasoning.