Search results
Results from the WOW.Com Content Network
Service-goods continuum. The division of consumables into services is a simplification: these are not discrete categories. Most business theorists see a continuum with pure service at one endpoint and pure tangible commodity goods at the other. Most products fall between these two extremes.
Products today have a higher service component than in previous decades. In the management literature this is referred to as the servitization of products or a product-service system. Virtually every product today has a service component to it. The old dichotomy between product and service has been replaced by a Service (economics) service ...
An experience good is a product or service where product characteristics, such as quality or price, are difficult to observe in advance, but these characteristics can be ascertained upon consumption. The concept is originally due to Philip Nelson , who contrasted an experience good with a search good .
The service provider must deliver the service at the exact time of service consumption. The service is not manifested in a physical object that is independent of the provider. The service consumer is also inseparable from service delivery. Examples: The service consumer must sit in the hairdresser's chair, or in the airplane seat.
A service is also regarded as a type of product. In project management, products are the formal definition of the project deliverables that make up or contribute to delivering the objectives of the project. A related concept is that of a sub-product, a secondary but useful result of a production process.
A product's service life is its period of use in service. Several related terms describe more precisely a product's life, from the point of manufacture, storage, and distribution, and eventual use. Several related terms describe more precisely a product's life, from the point of manufacture, storage, and distribution, and eventual use.
"Product Servitization" is a transaction through which value is provided by a combination of products and services in which the satisfaction of customer needs is achieved either by selling the function of the product rather than the product itself, by increasing the service component of a product offer, or by selling the output generated by the product. [18]
Service products are conceptualized as consisting of a bundle of tangible and intangible elements: [46] Core service: the basic reason for the business; that which solves consumer problems Supplementary goods and services: supplements or adds value to the core product and helps differentiate the service from competitors (e.g. consultation, safe ...