Core Concepts of Marketing

CLASSIFICATIONOFPRODUCTS 157

Goods VersusServices

Sugge:;tingthattherearesubstantialdifferencesbetween goodsproductsandserviceprod-
uctshasbeenthesourceofgreatdebateinmarketing.Opponentsofthe division propose
that"productsarejJroducts,"andjustbecausetherearesomecharacteristics associatedwith
serviceproductsandnotgoodsproductsandvice-versa, doesnotmean customizedstrate-
giesaregenerallynecessaryforeach.Advocatesprovideevidence that these differences
aresignificant.It is thepositioninthisbookthatserviceproducts arediffere ntthangoods
products,andthatserviceproductsrepresentanimmense market sector.
Serviceproductsarereflectedbya widevarietyofindustries:utilities, barbers, travel
agencies,health spas,consultingfirms, medical careandbanking,tonamebutafew,and
theyaccountfornearly50%oftneaverageconsumer's totalexpendit ures,70%ofthe jobs,
andtwo-thirdsoftheG.N.P.Clearly,theservicesecto r islargeandisgrowing.While all
productssharecertaincommonfacets,serviceproductstend todifferfromgoodsproducts
ina numberofways

CharacteristicsofServiceProducts

Li kegoodsproducts, serviceproductsarequiteheterogeneous. Nevertheless,there aresev-
eralcharacteristicsthataregeneralizedtoserviceproducts.

Intangible AsnotedbyBerry,"agoodis anobject,a device,a thing; a service is
a deed,a performance,aneffort." Withthepurchaseofa goodyouhave something that
canbeseen, touched,tasted, wornordisplayed; this isnottruewitha service. Although
youpayyourmoneyandconsumetheservice,thereisnothingtan gibletoshowforit.For
example,if youattenda professionalfootballgame,you spend$19. 50 fora ticket andspend
nearly threehourstakingintheentertainment.

A D7.1 Shoesareatraditionalgoodsproduct.