Service

Question 1: Define and discuss using relevant example from the case, the special characteristics of services that distinguish them from tangible products.

There is general agreement that differences between goods and services exist. That is, services tend to be more heterogeneous, more intangible, more difficult to evaluate than goods, but the differences between goods and services are not black and white by any means. These special characteristics result in challenges, as well as advantages, for managers of services.

First of all, the most basic distinguishing characteristic of services is intangibility. Services cannot be seen, tasted, touched, or felt in the same way that you can sense tangible goods, since the services are performances or actions rather than objects. In the case, John provides his customers with 'fishing flexibility' and guides them to where the fishing was best at the time. His service is intangible because the customers do not to buy something physical other than accepting some assistance or convenience. Oppositely, when John was in the retail sports shop to sell the fishing equipments, he was selling tangible products, such as rods and reels. Since that, intangible services cannot be inventoried, and therefore fluctuations in demand are often difficult to manage.

Secondly, services are performances and produced by humans, therefore no two services will be precisely alike. Heterogeneity also results because no two customers are very alike. Each of them will have unique demands or experience the services in a unique way. However, since products are produced by machines or some other standardized tools, and they are designed, produced and qualified through certain standards or rules, the same kind of products are homogeneous. For example, the rods and reels of the same brand are homogeneous. However, John's guiding services will be different because of the different conditions such as good or bad weather, the friendly or...