Question 1: Define and discuss using relevant example from the case, the special characteristics of services that distinguish them from tangible products.
Services are one type of products with several special characteristics which are really different with tangible products. The major special features of services are more intangibility, heterogeneity, inseparability, and perishability. Those characteristics are also reflected in John’s case.
1.1 Intangibility
Compare with the tangible products’ tangibility, the main characteristic of services is intangibility which was shown through a set of actions. Intangibility characteristic of service describes that services cannot be seen, felt, tasted, or touched thus one cannot display or store the service. However, it is usually felt by tangible goods or physical evidence. Moreover, service cannot be inventoried, easily patented, and easily displayed or communicated.
From John’s case, John gives his customers guide of fishing and a series of fishing itinerary. These all are the intangible things to anglers. It cannot be touched, felt, or seen by his customers. However, his customers enjoyed their tours and gain fishes after his guiding. Thus, this can be said that customers got John’s services. Compared with his services business, John used to be selling the tangible goods, either the rods, artificial flies or oilskins the department sold are tangible.
Moreover, because of the intangibility, pricing John’s services is difficult. Compared with physical goods, pricing services are not easy. Same tangible goods also sold with a same price. In this case, the two couples got different price after serviced. It seems that they gained a same series of services, but the feelings and appraisals are different.
1.2 Heterogeneity
Heterogeneity concerns the potential for high variability in the performance of services (Bitner et al., 2009). Contrast to service, tangible