Week 1 discussion questions
1. What is the difference between a product/good and a service? Provide an example where you have compared a good or service by its value and compared with perceived benefits and price. How did your assessment of value lead to a purchase or nonpurchase decision?
A product is an actual tangible object that is sold to the consumer, for their use. For example, a computer or a cell phone, is something that can be purchased and used. The word product encompasses most of the things that we use in our everyday lives, basically everything that can be held or touched is a product. A service is an intangible deliverance of a benefit or labor that the consumer receives a benefit from. For example, the internet connection for your computer or cell phone. The internet connection is intangible and can not be seen, but is of use to the end consumer, making it a service. Services also include labor performed, such as routine maintenance, services rendered such as counseling sessions or piano lessons, volunteering, or the utilities to your house. Both products and services are consumed by the end user.
An example of a time that I compared a service on its value, benefits, and price is the last time I had to have my vehicle worked on. Routine maintenance on my car was needed earlier this year – after the warranty had expired, of course. The injectors were clogged, the car was running rough etc. I took it to the local BMW dealership to have it looked at. And like I expected, it was a huge ordeal. We all know the song and dance, the service manager always tries to make everything seem worse than it is. The quote to replace the injectors and do a routine maintenance check on the car was over $4k. I compared this “service” quote to the last time I had BMW replace something. A broken drivers side window that ended up costing me $500 out of pocket and $500 from my insurance agency. Perceived benefits of using BMW to do any sort of service work...