MKT 337 Midterm: What Are Services
Document Summary
Definitions: (1) the result of applying human or mechanical efforts to people or objects. Services involve a deed, perfor(cid:373)a(cid:374)(cid:272)e, or effort that (cid:272)a(cid:374)"t (cid:271)e physi(cid:272)ally possessed or (cid:894)2(cid:895) Intangible activities or benefits that an organization provides to consumers in exchange for money or something else of value. Importance: (1) service industries account for 68% of u. s. gdp and four out of five u. s. jobs and (2) goods producing firms employ 23. 8 million people; services firms employ 84 million. Largest private service sectors in the us: (1) finance, insurance, and real estate; (2) professional and business services; (3) educational services and health care; (4) retail and wholesale trade. Intangible: no physical object makes it hard to communicate benefits. Inseparable: production and consumption are simultaneous, meaning the consumer must be present during the production. Heterogeneous (inconsistent): the variability of the inputs and outputs of services, which causes services to tend to be less standardized and uniform.
