DIFFERENCE BETWEEN PRODUCT AND SERVICE RETAILING

BY

RAJAT ROY- 12DM021PRIYANKA KUMARI-12DM022BANDINEE PRADHAN-12DM023

WHAT IS RETAILING?

The sale of goods or commodities in small quantities directly to customers.

DIFFERENCE BETWEEN PRODUCT AND SERVICE RETAILING

Product or Goods are tangible while services are intangible.

Services cannot be stored as physical inventory.

Customers participate in many service processes, activities and transactions.

The demand for services is more difficult to predict than the demand for goods.

Patents do not protect services. Service facilities typically need to be in

close proximity to the customer.

PRODUCT OR GOODS ARE TANGIBLE WHILE SERVICES ARE INTANGIBLE

Goods-producing industries rely on machines and “hard technology” to perform work.

Customers judge the value of a service and form perceptions through service encounters.

SERVICES CANNOT BE STORED AS A PHYSICAL INVENTORY

In goods-producing firms, customer demand from the production process or between stages of the production process.

Services firms do not have physical inventory to absorb such fluctuations in demand.

CUSTOMERS PARTICIPATE IN MANY SERVICE PROCESSES, ACTIVITIES AND TRANSACTIONS.

Many services require that the customer be present either physically, on a telephone, or online for services to commence.

THE DEMAND FOR SERVICES IS MORE DIFFICULT TO PREDICT THAN THE DEMAND FOR GOODS. Customer arrival rates and demand

patterns for such services delivery systems as Banks, airlines, supermarkets, telephones, etc. are very difficult to forecast.

SERVICE FACILITIES TYPICALLY NEED TO BE IN CLOSE PROXIMITY TO THE CUSTOMER.

When customers must physically interact with a service facility.

PATENTS DO NOT PROTECT SERVICES.

A patent on a physical goods can provide protection from competitors.

CONCLUSIONWhile past methods of distinguishing services fromgoods have focused upon the characteristics of intangibility,inseparability, variability, and perishability, these criteria areless than satisfactory from a retailing standpoint.A more useful focus for differentiating among retail businesses isbased on the four types of utilities provided to consumersduring the exchange process: time, place, form, and possession.This focus is capable of yielding a higher degree ofdiscriminatory precision and integrity compared with other retail or service classification schemes.

REFERENCES

https://mail-attachment.googleusercontent.com

Retailing Management- Swapna Pradhan