Differences Between Economic Goods and Services
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Differences Between Economic Goods and Services

There is a huge difference between service and goods. Service is a kind of activity or a set of activities of more or less intangible nature.

There is a huge difference between service and goods. Services are a kind of activity or a set of activities of more or less intangible nature. According to Bruhn (2008), service is a type of goods dedicated for the purposes of economics, which in contrast to the goods, is not the material production or the material value of an end product in the foreground but a natural person or legal entity provided at a time or in a time frame based on performance to cover demand. The provider of such services is called a service.

Economically, services are recorded and reported as part of the gross domestic product but only services can be assessed on market prices. In the three-sector hypothesis, the economy is divided into the primary sector of commodity production, the secondary sector of manufacturing industry and the tertiary sector of services. From a business perspective, we distinguish service and product from the benefit in kind. As per Malleri and Frietzsche (2008), the service is not storable, rarely transmissible and requires an external factor. Their production and consumption are usually coincided. In this paper, Broadway Infotech serves as an example of a service organization.

Goods are a central element of every economics study. It is ultimately goods that determine economic well being from an economic perspective. Goods are primarily different from services in the fact that they are a type of physical product that is bought by the customers, such as soap, toothpaste, and an electronic gadget. As per Mario Miranda (2004), in a market system of compensation, the goods that are scarce demand generally far higher rates than the actual price. Nel (2005) states that economic goods are real goods and nominal assets are divided.

According to Lee, Chung, and Taylor (2003), it is in this respect that tangible goods and intangible property are distinguished. The latter can in turn be divided into services and ideational property. Also here the transition is smooth. Maleri and Frietzsche (2008) state that services are intangible in its result predominantly but can include physical components, such as a carrier medium on which the result of the service is passed. The quality of the service is referred to as service quality. In addition to the performance outcome of a particular service, the power generation process and the performance potential are all of importance. All three so-called "performance dimensions" are included in the assessment of service quality, as stated by Richter and Souren (2008). Services vary in standard and custom. The latter is created, however, for a specific individual. One feature of standardized services is that they are created for a fictitious average customer. The degree of participation of the customer is higher for individual services. In Broadway InfoTech, the performance of the software and web developers is the biggest factor.

References:

Bruhn, M., Stauss, B. & Wiesbaden, G. (2008). service marks. ISBN 3-8349-0609-3.

Lee, T. , Chung, W. & Taylor, R. (2003), A strategic response to the financial crisis: an empirical analysis of financial services advertising before and during the financial crisis. (pp. 150 - 164)

Maleri, R. & Frietzsche, U. (2008), Fundamentals of service production Springer, Berlin / Heidelberg. ISBN 978-3-540-74058-2.

Nel, D., van Heerden, G., & Chan, C. (2005), Eleven years of scholarly research in the Journal of Services Marketing.

Richter, M. & Souren, R. (2008), On the problem of defining a business service definition Technical University of Ilmenau,. ISBN 978-3-940882-09-7.

 

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