BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -services are more variable: Services are often customized to meet the specific needs of the customer, which makes them highly variable.

Detailed explanation-2: -Goods are usually associated with more variable costs than services. A lot of estimates go into the final calculation to determine market size, and each component needs to be as precise as possible. Otherwise, the errors in the estimation get compounded.

Detailed explanation-3: -Goods are tangible, as in these have a physical presence and they can be touched, while services are intangible in nature. The purpose of both goods and services is to provide utility and satisfaction to the consumer.

Detailed explanation-4: -Services have the characteristic of heterogeneity. They vary in output, and mistakes happen in real time, in the customer’s face, which creates a number of challenges for the services marketer. Perishability: Because services are produced and consumed simultaneously, they cannot be inventoried.

Detailed explanation-5: -What does good variability consists of? The customization and tailoring of the service delivery for the customer’s unique needs. Services are said to be less variable than products. A “product” is the general term used to describe both goods and services.