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Development of a service different than a physical good

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How is the development of a service different than a physical good (product)? What changes might be made to the process? Are there any additional steps that would be added to development phases? Consider additional processes that must be in place for a new service to be implemented effectively.

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This discusses the development of a service different than a physical good

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Difference betwwn service and Product organisation
1. Products are tangible, Services are intangible
2. Services are typically produced and consumed simultaneously, Biut physical products can have inventory. Thus services are inseparable
3. Services are perishable and cannot be stored
4. Varaibility is much more in services as they depend on who they provides them and when and where they are provided.
5. The encounter between the customer and services must be provided for in the service organization. This encounter can be intense because customer actually becomes part of the production process as in hospitals where the service is actually performed on the customer.
Thus service facilities are more dramatically affected by the customer interface as compared to ...

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