{"id":1632,"date":"2020-09-18T16:38:51","date_gmt":"2020-09-18T16:38:51","guid":{"rendered":"https:\/\/opentextbc.ca\/introtourism2e\/chapter\/differences-between-goods-and-services\/"},"modified":"2021-06-04T21:22:03","modified_gmt":"2021-06-04T21:22:03","slug":"differences-between-goods-and-services","status":"publish","type":"chapter","link":"https:\/\/opentextbc.ca\/introtourism2e\/chapter\/differences-between-goods-and-services\/","title":{"raw":"8.2 Differences Between Goods and Services","rendered":"8.2 Differences Between Goods and Services"},"content":{"raw":"[caption id=\"attachment_1631\" align=\"aligncenter\" width=\"600\"]<img class=\"wp-image-1630\" src=\"https:\/\/opentextbc.ca\/introtourism2e\/wp-content\/uploads\/sites\/315\/2020\/09\/British-Columbia-Parliament-Christmas-Lights.jpg\" alt=\"The Christmas lights covering the parliament buildings reflect in the Victoria harbour at dusk.\" width=\"600\" height=\"437\"> Figure 8.3 Selling a moment like this one, captured over the holidays in Victoria's inner harbour, is different from selling a tube of toothpaste.[\/caption]\n\nThere are four key differences between goods and services. According to numerous scholars (cited in Lovelock &amp; Patterson, 2015) services are:\n<ol>\n \t<li>[pb_glossary id=\"2733\"]Intangible[\/pb_glossary]<\/li>\n \t<li>[pb_glossary id=\"2689\"]Heterogeneous[\/pb_glossary]<\/li>\n \t<li>[pb_glossary id=\"3033\"]Inseparable[\/pb_glossary]<\/li>\n \t<li>[pb_glossary id=\"2849\"]Perishable[\/pb_glossary]<\/li>\n<\/ol>\nThe rest of this section details what these concepts mean.\n<h1>Intangibility<\/h1>\n[pb_glossary id=\"2933\"]Tangible[\/pb_glossary] goods are ones the customer can see, feel, and\/or taste ahead of payment. [pb_glossary id=\"2733\"]Intangible[\/pb_glossary] services, on the other hand, cannot be \"touched\" beforehand. An airplane flight is an example of an intangible service because a customer purchases it in advance and doesn't \"experience\" or \"consume\" the product until he or she is on the plane.\n<h1>Heterogeneity<\/h1>\nWhile most goods may be replicated identically, services are never\u00a0exactly the same; they are [pb_glossary id=\"2689\"]heterogeneous[\/pb_glossary]. Variability in experiences may be caused by location, time, topography, season, the environment, amenities, events, and service providers. Because human beings factor so largely in the provision of services, the quality and level of service may differ between vendors or may even be inconsistent within one provider. We will discuss quality and level of service further in Chapter 9.\n<h1>Inseparability<\/h1>\nA physical good may last for an extended period of time (in some cases for many years). In contrast, a service is produced and consumed at the same time. A service exists only at the moment or during the period in which a person is engaged and immersed in the experience. When dining out at a restaurant, for instance, the food is typically prepared, served, and consumed on site, except in cases where customers utilize takeout or food courier options such as Skip the Dishes.\n\n[caption id=\"attachment_1631\" align=\"aligncenter\" width=\"400\"]<img class=\"wp-image-1631\" src=\"https:\/\/opentextbc.ca\/introtourism2e\/wp-content\/uploads\/sites\/315\/2021\/06\/Empty-Flight.jpg\" alt=\"Rows and rows of empty airplane seats.\" width=\"400\" height=\"267\"> Figure 8.4 These empty seats represent lost revenue for the airline.[\/caption]\n<h1>Perishability<\/h1>\nServices and experiences cannot be stored; they are highly [pb_glossary id=\"2849\"]perishable[\/pb_glossary]. In contrast, goods may be held in physical inventory in a lot, warehouse, or a store until purchased, then used and stored at a person's home or place of work. If a service is not sold when available, it disappears forever. Using the airline example, once the airplane takes off, the opportunity to sell tickets on that flight is lost forever, and any empty seats represent revenue lost (Figure. 8.4).\n\n&nbsp;\n\n&nbsp;\n\n[h5p id=\"30\"]","rendered":"<figure id=\"attachment_1631\" aria-describedby=\"caption-attachment-1631\" style=\"width: 600px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-1630\" src=\"https:\/\/opentextbc.ca\/introtourism2e\/wp-content\/uploads\/sites\/315\/2020\/09\/British-Columbia-Parliament-Christmas-Lights.jpg\" alt=\"The Christmas lights covering the parliament buildings reflect in the Victoria harbour at dusk.\" width=\"600\" height=\"437\" srcset=\"https:\/\/opentextbc.ca\/introtourism2e\/wp-content\/uploads\/sites\/315\/2020\/09\/British-Columbia-Parliament-Christmas-Lights.jpg 1024w, https:\/\/opentextbc.ca\/introtourism2e\/wp-content\/uploads\/sites\/315\/2020\/09\/British-Columbia-Parliament-Christmas-Lights-300x219.jpg 300w, https:\/\/opentextbc.ca\/introtourism2e\/wp-content\/uploads\/sites\/315\/2020\/09\/British-Columbia-Parliament-Christmas-Lights-768x560.jpg 768w, https:\/\/opentextbc.ca\/introtourism2e\/wp-content\/uploads\/sites\/315\/2020\/09\/British-Columbia-Parliament-Christmas-Lights-65x47.jpg 65w, https:\/\/opentextbc.ca\/introtourism2e\/wp-content\/uploads\/sites\/315\/2020\/09\/British-Columbia-Parliament-Christmas-Lights-225x164.jpg 225w, https:\/\/opentextbc.ca\/introtourism2e\/wp-content\/uploads\/sites\/315\/2020\/09\/British-Columbia-Parliament-Christmas-Lights-350x255.jpg 350w\" sizes=\"auto, (max-width: 600px) 100vw, 600px\" \/><figcaption id=\"caption-attachment-1631\" class=\"wp-caption-text\">Figure 8.3 Selling a moment like this one, captured over the holidays in Victoria&#8217;s inner harbour, is different from selling a tube of toothpaste.<\/figcaption><\/figure>\n<p>There are four key differences between goods and services. According to numerous scholars (cited in Lovelock &amp; Patterson, 2015) services are:<\/p>\n<ol>\n<li><a class=\"glossary-term\" aria-haspopup=\"dialog\" aria-describedby=\"definition\" href=\"#term_1632_2733\">Intangible<\/a><\/li>\n<li><a class=\"glossary-term\" aria-haspopup=\"dialog\" aria-describedby=\"definition\" href=\"#term_1632_2689\">Heterogeneous<\/a><\/li>\n<li><a class=\"glossary-term\" aria-haspopup=\"dialog\" aria-describedby=\"definition\" href=\"#term_1632_3033\">Inseparable<\/a><\/li>\n<li><a class=\"glossary-term\" aria-haspopup=\"dialog\" aria-describedby=\"definition\" href=\"#term_1632_2849\">Perishable<\/a><\/li>\n<\/ol>\n<p>The rest of this section details what these concepts mean.<\/p>\n<h1>Intangibility<\/h1>\n<p><a class=\"glossary-term\" aria-haspopup=\"dialog\" aria-describedby=\"definition\" href=\"#term_1632_2933\">Tangible<\/a> goods are ones the customer can see, feel, and\/or taste ahead of payment. <a class=\"glossary-term\" aria-haspopup=\"dialog\" aria-describedby=\"definition\" href=\"#term_1632_2733\">Intangible<\/a> services, on the other hand, cannot be &#8220;touched&#8221; beforehand. An airplane flight is an example of an intangible service because a customer purchases it in advance and doesn&#8217;t &#8220;experience&#8221; or &#8220;consume&#8221; the product until he or she is on the plane.<\/p>\n<h1>Heterogeneity<\/h1>\n<p>While most goods may be replicated identically, services are never\u00a0exactly the same; they are <a class=\"glossary-term\" aria-haspopup=\"dialog\" aria-describedby=\"definition\" href=\"#term_1632_2689\">heterogeneous<\/a>. Variability in experiences may be caused by location, time, topography, season, the environment, amenities, events, and service providers. Because human beings factor so largely in the provision of services, the quality and level of service may differ between vendors or may even be inconsistent within one provider. We will discuss quality and level of service further in Chapter 9.<\/p>\n<h1>Inseparability<\/h1>\n<p>A physical good may last for an extended period of time (in some cases for many years). In contrast, a service is produced and consumed at the same time. A service exists only at the moment or during the period in which a person is engaged and immersed in the experience. When dining out at a restaurant, for instance, the food is typically prepared, served, and consumed on site, except in cases where customers utilize takeout or food courier options such as Skip the Dishes.<\/p>\n<figure id=\"attachment_1631\" aria-describedby=\"caption-attachment-1631\" style=\"width: 400px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-1631\" src=\"https:\/\/opentextbc.ca\/introtourism2e\/wp-content\/uploads\/sites\/315\/2021\/06\/Empty-Flight.jpg\" alt=\"Rows and rows of empty airplane seats.\" width=\"400\" height=\"267\" srcset=\"https:\/\/opentextbc.ca\/introtourism2e\/wp-content\/uploads\/sites\/315\/2021\/06\/Empty-Flight.jpg 2048w, https:\/\/opentextbc.ca\/introtourism2e\/wp-content\/uploads\/sites\/315\/2021\/06\/Empty-Flight-300x200.jpg 300w, https:\/\/opentextbc.ca\/introtourism2e\/wp-content\/uploads\/sites\/315\/2021\/06\/Empty-Flight-1024x683.jpg 1024w, https:\/\/opentextbc.ca\/introtourism2e\/wp-content\/uploads\/sites\/315\/2021\/06\/Empty-Flight-768x512.jpg 768w, https:\/\/opentextbc.ca\/introtourism2e\/wp-content\/uploads\/sites\/315\/2021\/06\/Empty-Flight-1536x1024.jpg 1536w, https:\/\/opentextbc.ca\/introtourism2e\/wp-content\/uploads\/sites\/315\/2021\/06\/Empty-Flight-65x43.jpg 65w, https:\/\/opentextbc.ca\/introtourism2e\/wp-content\/uploads\/sites\/315\/2021\/06\/Empty-Flight-225x150.jpg 225w, https:\/\/opentextbc.ca\/introtourism2e\/wp-content\/uploads\/sites\/315\/2021\/06\/Empty-Flight-350x233.jpg 350w\" sizes=\"auto, (max-width: 400px) 100vw, 400px\" \/><figcaption id=\"caption-attachment-1631\" class=\"wp-caption-text\">Figure 8.4 These empty seats represent lost revenue for the airline.<\/figcaption><\/figure>\n<h1>Perishability<\/h1>\n<p>Services and experiences cannot be stored; they are highly <a class=\"glossary-term\" aria-haspopup=\"dialog\" aria-describedby=\"definition\" href=\"#term_1632_2849\">perishable<\/a>. In contrast, goods may be held in physical inventory in a lot, warehouse, or a store until purchased, then used and stored at a person&#8217;s home or place of work. If a service is not sold when available, it disappears forever. Using the airline example, once the airplane takes off, the opportunity to sell tickets on that flight is lost forever, and any empty seats represent revenue lost (Figure. 8.4).<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<div id=\"h5p-30\">\n<div class=\"h5p-iframe-wrapper\"><iframe id=\"h5p-iframe-30\" class=\"h5p-iframe\" data-content-id=\"30\" style=\"height:1px\" src=\"about:blank\" frameBorder=\"0\" scrolling=\"no\" title=\"Chapter 8. Services Marketing - The differences between Goods and Services\"><\/iframe><\/div>\n<\/div>\n<div class=\"glossary\"><span class=\"screen-reader-text\" id=\"definition\">definition<\/span><template id=\"term_1632_2733\"><div class=\"glossary__definition\" role=\"dialog\" data-id=\"term_1632_2733\"><div tabindex=\"-1\"><p>Untouchable: a characteristic shared by all services.<\/p>\n<\/div><button><span aria-hidden=\"true\">&times;<\/span><span class=\"screen-reader-text\">Close definition<\/span><\/button><\/div><\/template><template id=\"term_1632_2689\"><div class=\"glossary__definition\" role=\"dialog\" data-id=\"term_1632_2689\"><div tabindex=\"-1\"><p>Variable: a generic difference shared by all services.<\/p>\n<\/div><button><span aria-hidden=\"true\">&times;<\/span><span class=\"screen-reader-text\">Close definition<\/span><\/button><\/div><\/template><template id=\"term_1632_3033\"><div class=\"glossary__definition\" role=\"dialog\" data-id=\"term_1632_3033\"><div tabindex=\"-1\"><p>In relation to goods and services. Services cannot be separated from the service provider as the production and consumption happens at the same time.<\/p>\n<\/div><button><span aria-hidden=\"true\">&times;<\/span><span class=\"screen-reader-text\">Close definition<\/span><\/button><\/div><\/template><template id=\"term_1632_2849\"><div class=\"glossary__definition\" role=\"dialog\" data-id=\"term_1632_2849\"><div tabindex=\"-1\"><p>Something that is only good for a short period of time, a characteristic shared by all services.<\/p>\n<\/div><button><span aria-hidden=\"true\">&times;<\/span><span class=\"screen-reader-text\">Close definition<\/span><\/button><\/div><\/template><template id=\"term_1632_2933\"><div class=\"glossary__definition\" role=\"dialog\" data-id=\"term_1632_2933\"><div tabindex=\"-1\"><p>Goods the customer can see, feel, and\/or taste ahead of payment.<\/p>\n<\/div><button><span aria-hidden=\"true\">&times;<\/span><span class=\"screen-reader-text\">Close definition<\/span><\/button><\/div><\/template><\/div>","protected":false},"author":90,"menu_order":2,"template":"","meta":{"pb_show_title":"on","pb_short_title":"","pb_subtitle":"","pb_authors":[],"pb_section_license":"cc-by"},"chapter-type":[],"contributor":[],"license":[52],"class_list":["post-1632","chapter","type-chapter","status-publish","hentry","license-cc-by"],"part":1625,"_links":{"self":[{"href":"https:\/\/opentextbc.ca\/introtourism2e\/wp-json\/pressbooks\/v2\/chapters\/1632","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/opentextbc.ca\/introtourism2e\/wp-json\/pressbooks\/v2\/chapters"}],"about":[{"href":"https:\/\/opentextbc.ca\/introtourism2e\/wp-json\/wp\/v2\/types\/chapter"}],"author":[{"embeddable":true,"href":"https:\/\/opentextbc.ca\/introtourism2e\/wp-json\/wp\/v2\/users\/90"}],"version-history":[{"count":3,"href":"https:\/\/opentextbc.ca\/introtourism2e\/wp-json\/pressbooks\/v2\/chapters\/1632\/revisions"}],"predecessor-version":[{"id":3109,"href":"https:\/\/opentextbc.ca\/introtourism2e\/wp-json\/pressbooks\/v2\/chapters\/1632\/revisions\/3109"}],"part":[{"href":"https:\/\/opentextbc.ca\/introtourism2e\/wp-json\/pressbooks\/v2\/parts\/1625"}],"metadata":[{"href":"https:\/\/opentextbc.ca\/introtourism2e\/wp-json\/pressbooks\/v2\/chapters\/1632\/metadata\/"}],"wp:attachment":[{"href":"https:\/\/opentextbc.ca\/introtourism2e\/wp-json\/wp\/v2\/media?parent=1632"}],"wp:term":[{"taxonomy":"chapter-type","embeddable":true,"href":"https:\/\/opentextbc.ca\/introtourism2e\/wp-json\/pressbooks\/v2\/chapter-type?post=1632"},{"taxonomy":"contributor","embeddable":true,"href":"https:\/\/opentextbc.ca\/introtourism2e\/wp-json\/wp\/v2\/contributor?post=1632"},{"taxonomy":"license","embeddable":true,"href":"https:\/\/opentextbc.ca\/introtourism2e\/wp-json\/wp\/v2\/license?post=1632"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}