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Which statement shows the difference between the evaluation of goods and the evaluation of services by customers?

a) Goods have tangible attributes, while services have intangible attributes.
b) Goods require less customization than services.
c) Services are always more expensive than goods.
d) Goods have a longer lifespan compared to services.

User Orrin
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Final answer:

The difference between the evaluation of goods and services involves tangibility; goods are physical items, while services are intangible experiences or actions that cannot be physically possessed. Consequently, the evaluation of goods often relies on their physical quality and durability, whereas the evaluation of services focuses on the quality of the experience and intangible attributes such as customer satisfaction and provider reputation.

Step-by-step explanation:

The difference between the evaluation of goods and the evaluation of services by customers lies in their physical attributes and their mode of consumption. Statement a) Goods have tangible attributes, while services have intangible attributes shows the fundamental difference between goods and services. Goods are physical items that are tangible and can be touched, seen, and used over time. Examples include shoes, backpacks, and automobiles. Services, on the other hand, are intangible; they are experiences or actions provided by others such as haircuts, dental visits, or banking. Customers can evaluate goods based on physical quality and longevity. Durable goods, like cars and refrigerators, have a long lifespan, whereas non-durable goods like food and clothing are consumed quickly.

For services, intangible attributes such as the quality of the experience, customer service, and satisfaction guarantees play a significant role in the evaluation process. A service cannot be held, owned, or stored by the consumer; it is consumed at the point of delivery and cannot be returned in the same manner that physical goods can. Hence, the evaluation often includes the reputation of the service provider, the promise of satisfaction, and personal preferences influenced by past experiences and advertising.

User Chetan Bhalara
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