Service market: concept and specifics

2024 Author: Henry Conors | [email protected]. Last modified: 2024-02-12 02:40

Due to the variety of goods and services, the markets themselves are very numerous. The service market is characterized by the fact that services are mainly consumed at the place of their sale, so there is little room for mediation between consumers and producers. In addition, some of these markets provide free services such as primary or secondary education. Such services are socially significant and are paid for by state and municipal budgets.

The service market is an economic relationship between buyers and sellers. It is divided into tangible and intangible services.

Material services are aimed at meeting the everyday and material needs of the consumer. They include the preservation, restoration or change of consumer properties of the product or the manufacture of new goods at the request of the buyer. Shipping is also included.

Intangible services do not imply the presence of a "real" shell. These are services in the field of education, he althcare, consulting and banking services, the legal services market, etc.

Markets act as a system that connects supply and demand, and also helps in developing the market for material assets, ensuring a balanced reproduction process, and improving the quality of life of the population by satisfying their needs.

Currently, the country is competitive with a high degree of development of the service market (medical services market, for example) and its structure.

Studying the practice of the service market, you can identify its specifics, knowing which, you can succeed in service activities.

1. 

   High dynamics of market processes. Since the service cannot be "stored", there is a need for its next provision.

2. More pronounced segmentation of demand depending on the consumer's income, price, subjective characteristics of the significance of the service, the buyer's lifestyle, etc.
3. The service is differentiated both in terms of quality and consumer characteristics. This can be explained by the fact that the demand for it is usually individualized, personalized, which is a great incentive to create more and more new services.
4. The service market is defined by its localized nature or local segmentation. Typically, a certain type of service is observed in one "geographical" area. This has developed due to certain climatic conditions, traditions that exist in this area, remoteness from large centers, etc.
5. Non-price barriers to market entry. This isdue to the fact that potential consumers pay attention not only to the price, but also to the quality of the service, service, etc.
6. The predominance of small businesses in the market, which ensures its flexibility, as they respond faster to changing consumer preferences, and can also operate more efficiently in local markets.

Also, the services market is not marked by clear boundaries. And the main actors are the state, households, private enterprises and non-profit organizations.