Discuss the difference in how organizations purchase equipment and services from how they purchase services, and why these similarities and differences exist.
Difference in Organizations Equipment and Service Purchase
Organizations purchase products and services from the market in order to produce high quality products and services for the customers. There are some differences that occurred in the purchase of equipment and purchase of service. Equipment are tangible due to which, it is difficult for companies to analyze its overall quality. Therefore, organizations prefer to purchase from shops and other stores (Emanuelson, 2012, p. 166). On the other hand, services are intangible, which can be taken online. With the purchase of equipment, organizations analyze the expected life of the equipment and its resale value. At the same time, in the purchase of service, organizations analyze the present quality of the services.
The expert discusses the differences in how organizations purchase equipment and service from how they purchase services. The similarities and differences which exist are given.