Differentiating Between Services and Goods

Comparison 

Goods and services are almost inseparable and close to impossible to mention one without the other in the same breath. Indeed, for every good sold, there is accompanying customer service –a tenet that makes goods and services multifaceted concepts. However, more technically, these two harbor salient and inherent differences. First, according to their definitions: goods refer to tangible commodities or products that are delivered to a customer after purchase or completion of a business transaction. On the other hand, services refer to activities of performing work to or for others. Deductively, one differentiating aspect between the two business concepts is that while goods are produced, services are performed. Thus, goods are manufactured by companies such as BMW and Adidas that make cars and sportswear. On the other hand, examples of companies that offer services since they cannot be manufactured include courier companies such as FedEx and DHL. Nonetheless, a linking similarity here is that both are provided to a customer for a monetary incentive.

Further comparison of the two indicates that while goods are tangible commodities, services are intangible. Moreover, the consumption of goods happens after the production of the same. In comparison, consumption and production of services occur at the same time or simultaneously. Further, while goods can be stored in the form of inventory and stock, services cannot be stored similarly for later consumption. This means that there is timelessness in the way that services are produced and consumed as opposed to goods. In essence, the intangible nature of services is perhaps what makes them perishable or have a shorter lifespan compared to goods. Also, when buying a service, ownership is not transferred to the customer. Comparatively, when purchasing a good or product, ownership is transferred to the customer. For instance, when one buys an airline ticket, the airline ownership is not transferred to the buyer. However, when one buys a car, the car becomes theirs.

Furthermore, services involve more of the customer as observed in ATM or vending machines compared to buying goods. Another overarching comparison and difference between goods and services is quality. To ensure the quality of goods or products, mass manufacturing is conducted, resulting in uniformity. Comparatively, this aspect is nonexistent when dealing with services. This is because services involve a lot of manual labor over which the quality might be compromised. Here, the best solution for offering quality services is training personnel on best practices and ensure cons

Effect of Technology on Customer Service and Offerings

The customer experience landscape has been ripe for disruption for a long time, and as Morgan (2016) ascertains, companies are quickly edging toward more seamless and elementary customer experience by leveraging technology and its advancement. One way that technology has revolutionized customer service is through e-commerce and online shopping. Taking Amazon as an exemplar, customers can now order and specify products verbally through virtual assistants such as Alexa at the comfort of their homes. Further, messenger apps such as Kik have also revolutionized customer service by providing personalized content and buyer experiences to consumers.

Through technologically advanced communication platforms such as Zendesk, customer service and support is now 24/7. Social media has also been at the forefront of customer service and service delivery. Through social media platforms, customers can determine which brands they favor. Companies, on the other hand, can tailor their service marketing strategies to the needs of the social media community. Here, customers have all the power to control service offering and delivery through critiquing and reviewing.

In essence, technology has automated service delivery, and as such, more instances of self-service are becoming evident. For example, rather than queueing at a booking office or terminal for airline tickets, airlines have moved their services online in websites where customers can book tickets based on their preferences. This has been made possible by the increase in consumer data, which the service industry uses to tailor its service offering and delivery. All in all, as much as automation and technology are functional, the human touch is still invaluable. This is because as social beings, the personal touch still matters, and technology should only serve as an extension to it rather than replacing it.

References

Morgan, B. (2016). The evolution of customer service. Forbes. Retrieved from https://www.forbes.com/sites/blakemorgan/2016/04/18/the-evolution-of-customer-service/#14e387c72442