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Q1. Explain briefly the differences between services and tangible products

Answer: The tangible goods are the objects which are available to the customer’s knowledge and purchasing capacity within their limit. These are the goods which are consumable by the consumer or customers according to their demands or wants.
E.g. all perishable goods like rice, wheat, milk, oil etc. and bike, shirts pen etc.
Where as the services are the provisions of information to the consumers on the goods. E.g.,
rate of goods, Service in a hotel etc.
There are several differences between services and tangible products, which include:
Intangibility: We studied that services are intangible and it is some thing that you cannot see. It is an activity that you can experience or feel after its execution. For example, a friendly treatment or service makes the guest feel special and affects their experience, during their stay in the hotel. where as the goods are tangible.
Mass production of services: Services cannot be produced in mass quantities and stored for consumption in the later stages. Let us take the example of a travel industry. Holidays are the peak season in the travel industry when buses, cars, aeroplanes, trains, and crew members will be utilised to the maximum. For lean months when people travel very less, the travel industry will have the same number of aeroplanes, cars, buses, trains and so on. This example exemplifies the fact that the services cannot be produced and stored for future usage unlike goods.
Perishable nature of services: Tangible products contain expiry dates and carry labels with “best before” tags. Where as, services will not have expiry dates because it is an action that is carried out and is consumed immediately or as soon as possible. Moreover, the organisation will not be able to resell or return the services when compared to the manufactured goods.
Difficulty in standardising services: It is easy for a manufacturer of soap to produce millions of soap bars with the same size, scent and quality. The execution of services by an employee towards the client will be influenced by several factors. For example, a receiving clerk in an office will be very friendly and welcome you pleasantly in the morning, but might turn cranky by afternoon. Another example is in banks the client who is in hurry might be nasty to a bank teller, when compared to the client who has ample time to spend. Hence, we can conclude that in service marketing you cannot provide the same type of services to all your clients.
Pricing difficulty: Marketing practitioners address major challenges like deciding and putting the price tags. Some customers have a perception that low priced service is a low quality service. There must be a good coordination between the price and the kind of service the company provide. For example a low budget airline might not serve snacks or drinks during the journey. But the traveller might turn unsatisfactory for an airline that charges, but does not offer free in-flight meals.
Services cannot be patented: Owners of the newly invented tangible products protect their product’s secret ingredients and designs against their competitors by registering and obtaining patents for their products against a government agency. In case of services, the methods and models can be easily copied. To be in the market, the service oriented companies constantly find different ways by designing new service models and by copying the models of their competitors.
It is clear that the services and products are different. In the next section we will learn the meaning of service sector and how it is different from services.


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