What are the characteristics of services vs goods?

1 answer

Answer

1281446

2026-04-09 06:45

+ Follow

Services are:

  • Perishable
  • Inseparable (Consumer and supplier must be present during production and consumption)
  • Intangible
  • Variable (Different output each time)

Goods dominant logic says:

Goods are physical in nature whereas services are value driven products that are not physical but rather performance based.

Service dominant logic says:

Recent literature points out that, according to "Service Dominant Logic", all goods are actually services, because knowledge is the fundamental unit of exchange. Without knowledge being applied to, say, a microchip, it is merely a pile of silicone.

Also, a firm offers a value proposition (What it supplies the market with). This hypothesis is then tested by the market. For this reason, all firms are customer orientated and everything firms supply to markets are co-created, making them inseparable.

Goods are vehicles in which knowledge, the actual unit of value, is transported. Knowledge is intangible.

For the above reasons, all outputs of organisations should be classified as services.

  • Open in google Docs Viewer
  • Open link in new tab
  • Open link in new window
  • Open link in new incognito window
  • Download file
  • Copy link address
  • Edit PDF File on PDFescape.com
  • Open in google Docs Viewer
  • Open link in new tab
  • Open link in new window
  • Open link in new incognito window
  • Download file
  • Copy link address
  • Edit PDF File on PDFescape.com
  • Open in google Docs Viewer
  • Open link in new tab
  • Open link in new window
  • Open link in new incognito window
  • Download file
  • Copy link address
  • Edit PDF File on PDFescape.com
ReportLike(0ShareFavorite

Copyright © 2026 eLLeNow.com All Rights Reserved.