A service is any primary or complementary activity

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A service is any primary or complementary activity that does not directly produce a physical product. Services represent the nongoods part of a transaction between a buyer (customer) and seller (supplier). Service-providing firms are found in industries such as banking, lodging, education, health care, and government. Differences Between Goods and Services: Goods are tangible, whereas services are intangible. Customers participate in many service processes, activities, and transactions. The demand for services is more difficult to predict than the demand for goods. Services cannot be stored as physical inventory. Service management skills are paramount to a successful service encounter. o Service management integrates marketing, human resources, and operations functions to plan, create, and deliver goods and services, and their associated service encounters. Service facilities typically need to be in close proximity to the customer. Patents do not protect services. A customer benefit package (CBP) is a clearly defined set of tangible (goods content) and intangible (service content) features that the customer recognizes, pays for, uses, or experiences. The CBP is a way to conceptualize and visualize goods and services by thinking broadly about how goods and services are bundled and configured together. A CBP consists of a primary good or service, coupled with peripheral goods and/or services, and sometimes variants. A primary good or service is the “core” offering that attracts customers and responds to their basic needs. For example, the primary service of a personal checking account is convenient financial transactions. Peripheral goods or services are those that are not essential to the primary good or service, but enhance it. A variant is a CBP feature that departs from the standard CBP and is normally location- or firm- specific. A process is a sequence of activities that is intended to create a certain result. Biztainment is the practice of adding entertainment content to a bundle of goods and services in order to gain competitive advantage.
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Key processes in business typically include (1) value creation processes , focused on producing or delivering an organization’s primary goods or services, such as filling and shipping a customer’s order, assembling a dishwasher, or providing a home mortgage; (2 ) support processes , such as purchasing materials and supplies used in manufacturing, managing inventory, installation, health benefits, technology acquisition, day care on-site services, and research and development; (3) general management processes , including accounting and information systems, human resource management, and marketing. Sustainability refers to an organization’s ability to strategically address current business needs and successfully develop a long term strategy that embraces opportunities and manages risk for all products, systems, supply chains, and processes to preserve resources for future generations.
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