.Service Economy is the term used these days to classify world economy. This is because of the growing importance of service sector in the economy today. Growth of Service Sector today is indicated as a progress indicator for any economy. The world economies are now shifting their economic base from agriculture to industries and then to service sector. This has certainly brought about a change in the definition of goods and services. Goods and Services are no longer considered separate.
Services today are defined by activities, satisfactions and benefits that are offered for sale in connection with goods. There are also a number of characteristics that define services. Some of them are heterogeneity, perish ability and inseparability. There are also two types of services namely core services and supplementary services. Core services are the ones that remain the primary source of transaction. Supplementary services are the ones that are offered as a corollary in tangible product sales. Goods and Services also have a few minor differences. Goods refer to a physical commodity while Services refer to a particular activity. Goods are tangible while services are not. Goods can be stored since they are commodities while the same is not possible with services.
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