Service products are offered by a wide variety of industries such as barbers, travel agencies, and consulting firms.
Explain how services are a key aspect of the goods industry
It is important to remember that all products - whether they are goods, services, blankets, diapers, or plate glass - possess peculiarities that require adjustments in the marketing effort.
Behind every product is a series of supporting services, such as warranties and money-back guarantees.
An industrial customer might be keenly interested in related services such as prompt delivery, reliable price quotations, credit, test facilities, demonstration capabilities, liberal return policies, engineering expertise, and so forth.
A privilege of delayed payment extended to a buyer or borrower on the seller's or lender's belief that what is given will be repaid.
The price of your merchandise or service tells the customer a lot about what they can expect from your business. This is why in some instances, salons and other services are able to charge a premium. Although they are delivering a product/service that is similar to competitors, the higher price suggests theirs has greater value.
Service products are reflected by a wide variety of industries: utilities, barbers, travel agencies, health spas, consulting firms, medical care and banking, to name but a few. They account for nearly 50% of the average consumer's total expenditures, 70% of the jobs, and two-thirds of the GNP. Clearly, the service sector is large and is growing. It is important to remember that all products—whether they are goods, services, blankets, diapers, or plate glass—possess peculiarities that require adjustments in the marketing effort. However, offering an exceptional product at the right price, through the most accessible channels, promoted extensively and accurately, should work for any type of product.
Moreover, behind every product is a series of supporting services, such as warranties and money-back guarantees. In many instances, such services may be as important as the product itself. In fact, at times it is difficult to separate the associated services from the product features. Consequently, companies must constantly monitor the services offered by the company and its competitors. Based on the results of data-gathering devices such as customer surveys, consumer complaints, and suggestion boxes, the product manager can determine the types of services to offer, the form the service will take, and the price charged.
An industrial customer might be keenly interested in related services such as prompt delivery, reliable price quotations, credit, test facilities, demonstration capabilities, liberal return policies, engineering expertise, and so forth. Although there are a wide range of supportive services, the following are most prevalent:
Credit and financing: With the increased acceptance of debt by the consumer, offering credit and/or financing has become an important part of the total product. For certain market segments and certain products, the availability of credit may make the difference between buying or not buying the product.
Warranty: There are several types of durable products, retail stores, and even service products where warranties are expected. These warranties can provide a wide array of restitution, with a very limited warranty at one end of the continuum and extended warranties at the other.
Money-back guarantees: The ultimate warranty is the money-back guarantee. To the customer, a money-back guarantee reduces risk almost totally. There are certain market segments (e.g., low risk takers) that perceive this service as very important. Obviously this service is effective only if the product is superior and the product will be returned by only a few people.
Delivery, installation, and training: Firms that sell products that tend to be physically cumbersome or located far from the customer might consider delivery to be an integral part of the new product. Very few major appliance stores, lumber yards, or furniture stores could survive without provisions for this service. Similarly, there are products that are quite complicated and/or very technical, and whose average consumer could neither learn how to install or use it without assistance from the manufacturer. Both professional and home computer companies have been forced to provide such services.