This document discusses the differences between goods and services. Goods are tangible products that can be owned, used once or repeatedly. Services, on the other hand, are intangible actions that are performed for customers. Key characteristics of services are that they are intangible, inseparable from their production and delivery, inconsistent in their delivery, and perishable. Services require interaction between customers and employees to be delivered. The quality of a service is determined by comparing customer expectations to their perceptions of the service received.

1. Breaker
Service Presentation

2. • Goods are something that you can use or consume. Goods are owned by the
purchaser and can be used once or repeatedly. Goods are always tangible
property.
• Examples of Goods:
 Books , CDs
 Foodstuff
 Furniture
 Real Estate
 Printers, computers and computer hardware
 Vehicle, etc.

3. • Services are actions or an action that someone does for you. Services are
intangible property since you don’t receive anything solid and you don’t obtain
ownership of the actions taken. The purchaser of a services gets something
needed but does not own any tangible, solid or fixed property.
• Examples of Services:
 Use licenses – permission to use property of another (this includes software licenses)
 Consultant services;
 Labor to install, assemble, dismantle, adjust, repair, or maintain tangible property
 Labor to install, configure, modify or upgrade a computer program
 Maintenance contracts; contracts for service (but not the purchase of a warranty
agreement itself)

4. • The four I’s of services
 Intangibility – Physical Evidence
 Inseparability
 Inconsistency
 Inventory - Perishability
Process
People

5. • Services are activities, experiences -not things
• But very often you need things to provide services
 Transportation services needs busses, trams, trains, plains
 Health care services needs hospitals, syringes, stethoscopes, beds
 Fast food Services needs tables, seats

6. • No service can be provided without the participation of the customer!
 Interactive customer
 Interactive producer (employee)
 Some parts of the service require interaction
 Some parts of the service do not require interaction
• Different services require a different intensiveness of interaction.

7. Source: Kasper et al.(1999): Services Marketing Management, S. 11

8. • The customer is an essential part of the service production process.
Standardization of services is difficult on many occasions!

9. • Services are intangible and therefore can not be stored
• The more intangible a service is, the more problematic is its storage

14. InteractionProduct
Characteristics
Loyalty  Satisfaction = Perception – Expectation
Quality
TimePrice

15. • This indicates:
 In the service industry, quality is not absolute nor relative to contractual
obligations, it is relative to the performance believed to be available from
competitors.
 Improvement can be gained by managing the expectations of customers without
any change in performance.
Service Quality = Perception – Expectation

16. CustomerDXP