BUS-BE 375 Lecture Notes - Lecture 6: Vending Machine, Service Design, Final Good
Document Summary
This means that with manufacturing, there is an obvious quality associated with the finished product. Human beings by nature are highly variable and that variation presents challenges that have to be adapted to: services revolve around what are known as cycles of encounters. There is an entry and exit to most services and many services will rely on the need to have repeat patronage whereas a manufactured good may or may not expect frequent repurchasing depending on the particular product. This is because the likelihood of getting a potential client or customer to click through an email or react to some sort of direct mail piece is pretty low. It is very inexpensive to send an email: face-to-face customization - total opposite to mail contact. A situation where the company or the business agent interacts directly with the customer. If the customer is motivated, the likelihood of the transaction being completed is pretty high.
