consumer good, in economics, any tangible commodity produced and subsequently purchased to satisfy the current wants and perceived needs of the buyer. Consumer goods are divided into three categories: durable goods, nondurable goods, and services. Consumer durable goods have a significant life span, often three years or more (although some authorities classify goods with life spans of as little as one year as durable). As with capital goods (tangible items such as buildings, machinery, and equipment produced and used in the production of other goods and services), the consumption of a durable good is spread over its life span, which tends to create demand for a series of maintenance services. The similarities in the consumption and maintenance patterns of durable and capital goods sometimes obscure the dividing line between the two. The longevity and the often higher cost of durable goods usually cause consumers to postpone expenditures on them, which makes durables the most volatile (or cost-dependent) component of consumption. Common examples of consumer durable goods are automobiles, furniture, household appliances, and mobile homes. (See also capital.)
Consumer nondurable goods are purchased for immediate or almost immediate consumption and have a life span ranging from minutes to three years. Common examples of these are food, beverages, clothing, shoes, and gasoline.
Consumer services are intangible products or actions that are typically produced and consumed simultaneously. Common examples of consumer services are haircuts, auto repairs, and landscaping
23. Clarify reasons and methods, how to decide to differentiate in the marketplace with services.
Differentiation allows you to provide superior value to customers at an affordable price, creating a win-win scenario that can boost the overall profitability and viability of your business. Our research indicates there are six primary ways to differentiate, including product, service, channels of distribution, relationships, reputation/image, and price.
24. Distinctive characteristics of services. Identify each one give at least 1-2 examples.
First things first―what are services? Services are non-physical items that can be provided by businesses and paid for by consumers. Services include but are not limited to banking, communication, education, medical treatments, beauty treatments, transportation, tourism, and insurance.
Selling a service is very different from selling a product. When you sell computers or computer parts, the buyer can hold and feel them. But when you sell a service, your audience is buying something that they will never own. For example, when traveling on an airplane, travelers pay for a service―to be brought from Point A to Point B. They don’t buy the airline, the plane, or the seat. When visiting a hair salon, consumers pay for a service―to have their hair cut. They don’t buy the hair salon, the hairdressing tools, or the hair products.
When selling a service, you are selling an experience. That experience has a perceived value. Airlines can promote their services, as can hair salons. By using service marketing, a company can display its offerings and benefits to increase end-customer value.
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