Management Notes

Reference Notes for Management

Which is not true regarding differences between goods and services

Which is not true regarding differences between goods and services

A) Services are generally produced and consumed simultaneously; tangible goods are not.
B) Services tend to be more knowledge-based than goods.
C) Services tend to have a more inconsistent product definition than goods.
D) Goods tend to have higher customer interaction than services.
E) Reselling is unusual in services; goods often have some residual value.

The Correct Answer for the given question is Option D) Goods tend to have higher customer interaction than services.

Option D) Goods tend to have higher customer interaction than services is the correct answer.

Let’s break down why this is the correct answer in detail:

D) Goods tend to have higher customer interaction than services.

This statement is not true. In fact, services typically involve a higher degree of customer interaction compared to goods. When you purchase a tangible product, like a smartphone or a book, the interaction with the customer usually ends at the point of sale.

You may have some minimal interaction during the purchasing process, such as asking questions or receiving assistance, but once you leave the store or receive the product, the interaction tends to be limited.

On the other hand, services often require ongoing and extensive customer interaction. For example, when you visit a restaurant, you not only interact with the staff to place your order but also expect ongoing service throughout your meal.

The quality of service, including the friendliness of the waitstaff, the speed of food delivery, and the resolution of any issues, can significantly impact your dining experience.

Similarly, when you hire a consultant or engage with a healthcare provider, you expect ongoing communication and interaction to meet your needs and address any concerns.

Now, let’s analyze why the other options are not correct:

A) Services are generally produced and consumed simultaneously; tangible goods are not.

This statement is true and accurately reflects a key difference between goods and services. Services are often produced and consumed in real-time, such as when you receive a haircut or consult with a lawyer.

In contrast, tangible goods are typically produced beforehand and then sold to consumers, meaning there is a time gap between production and consumption.

B) Services tend to be more knowledge-based than goods.

This statement is generally true. Many services, such as education, consulting, and healthcare, rely heavily on the expertise and knowledge of the service provider.

Goods, on the other hand, may involve knowledge in their design and production but do not always require ongoing knowledge-based interactions with customers once they are sold.

However, there are exceptions, such as high-tech goods that may require ongoing software updates or technical support.

C) Services tend to have a more inconsistent product definition than goods.

This statement is true to some extent. Services can be more variable in their quality and delivery compared to tangible goods, which are often standardized.

The quality of a service can depend on various factors, including the skill and attitude of the service provider, the specific circumstances of the interaction, and customer expectations.

Goods, on the other hand, can be manufactured with a consistent standard, leading to a more predictable product definition.

E) Reselling is unusual in services; goods often have some residual value.

This statement is generally true as well. While it is possible to resell some services, such as event tickets or hotel reservations, it is less common and often subject to limitations.

In contrast, tangible goods often retain some residual value, and reselling them in the secondary market is common.

This is because goods can be physically transferred from one owner to another, while services are often tied to a specific time or individual and cannot be easily resold in the same way.

In conclusion, option D) correctly identifies that goods tend to have lower customer interaction than services. The other options are mostly accurate in highlighting key differences between goods and services, except for option D, which is the opposite of reality.

Understanding these distinctions is crucial for businesses and consumers to navigate the unique characteristics of goods and services in the marketplace.

Difference between Goods and Services

Goods 

Services

Goods are the material items that can be seen, touched or felt and are ready for sale to the customers. Services are amenities, facilities, benefits or help provided by other people.
Goods are Tangible in Nature. Services are Intangible in Nature.
The ownership of Goods is transferable. The ownership of services is non-transferable.
Goods can be stored for use in future or multiple use. Services cannot be stored.
Goods tend to have higher customer interaction than services. Services tend to have lower customer interaction than Goods.

Services and goods serve as aids to the people. As a result, they are able to complete people’s needs and make sure that they do not face any difficulties in their lives. Many goods are useful to people when they perform several daily tasks or enable them to complete various tasks. People also benefit greatly from the services provided by different institutions. They make people’s lives easier and more convenient. As well as working hard to provide these services, those who deliver them work hard as well.

A company usually keeps a stock of goods with itself to meet an urgent need for goods. It also keeps track of the quantity of goods at the beginning and the end of the process. Services, on the other hand, are delivered based on the needs of the customer. To sum it up, services are produced according to the demands of the customer. Value Added Tax (VAT) is imposed on goods, whereas service tax is imposed on services.

Often, companies offer products and services in such a way that it is hard to distinguish the goods from the services, like in a restaurant where you pay for the food you eat as well as the services of the waiters, chef, watchman, etc.

Using threats or intimidation to persuade someone is which influence tactic?

Smirti

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