Hi Everyone,
If you are in business to be successful then it pays to understand the type business you are in!
Whilst it's sometimes difficult to differentiate a service from other product driven businesses, doing so can help illuminate some of the problems some types of business face as opposed to others.
Rarely are businesses now purely service or purely product propositions but understanding where your business lies on this continuum can be useful. If your businesses core offerings are predominantly services then according to many authors, the following factors may impact on the way you market your business and the risks your customers may perceive:
Intangability - there may be no physical object(s) that change hands thus customers can not readily assess your offerings against what they need or desire; heterogeneity - the people delivering the service are seen by the customer as one and the same as the service; inseperability - the customer is involved in the delivery of the service at varying levels and that needs to be managed by the service provider; and perishability - services can not be stored (generally), this means that they may be subject to capacity contraints without the benefit of being able to store your offerings for a rainy day.
I hope this has given you something to think about for the time being and will help you move towards success and beyond.
Kind regards
Simon at your service
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