CH-12 PPT - Chapter 12: Services Professor Whitney Fall...

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© 2011 Robert H. Smith School of Business University of Maryland Chapter 12: Services Professor Whitney Fall 2011
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© 2011 Robert H. Smith School of Business University of Maryland How Services Differ from Goods Intangible Intangible Inseparable Inseparable Heterogeneous/ Variability Heterogeneous/ Variability Perishable Perishable No physical object may make it hard to communicate benefits. Production and consumption are simultaneous , meaning the consumer takes part in production. Services depend on their employees for quality, which makes consistency difficult to achieve. Services cannot be saved or placed in inventory, and it is challenging to synchronize supply and demand. Service – Product Continuum
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© 2011 Robert H. Smith School of Business University of Maryland Product – Service Continuum Pure Tangible Good Tangible Good with Accompanying Service Hybrid Major Service with Accompanying Minor Good Pure Service
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© 2011 Robert H. Smith School of Business University of Maryland
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CH-12 PPT - Chapter 12: Services Professor Whitney Fall...

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