Question

A service is defined as an intangible; it has no physical feature that is visible to the eyes of the consumer. Is service a money-making machine for the selling organization or do consumers truly benefit from the purchase of service?

Answer 1

Service is beneficial for both the selling organization and the consumers. While selling a service, the selling organization does not undergo specific cost. It benefits the customer by doing something the customer is not capable of doing or providing at a cheaper rate. Sometimes the customers avail service to make their life easier or to avoid any risk of harm. Anyways service creates value for both customers and the sellers. Unlike product, service involves direct interaction with customers and is highly flexible according to the customer interest. In order to succeed in the field and make profit, the organization should always focus on quality and time and the price should be reasonable while comparing these factors. Hence consumers benefit by availing services and the business also makes money at no additional cost.