Service market: the concept and specificity

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 site of their implementation, therefore there is not much room for mediation between consumers and producers. In addition, some such markets provide free services, such as primary or secondary education. Such services are socially significant and are paid by state and municipal budgets.

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

The material services are aimed at satisfying the consumer's everyday and material needs. They include the preservation, restoration or modification of the consumer properties of the product or the manufacture of new products on the order of the buyer. Also included is the transport of goods.

Intangible services do not imply the existence of a "real" shell. These services include education, healthcare, consulting and banking services, the legal services market, etc.

Markets act as a system linking supply and demand, as well as helping in the development of the market of material and material values, ensuring a balanced reproduction process, improving the quality of life of the population due to the fact that their needs are met.

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

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

1. High dynamism of processes in the market. Since the service can not be "stored", there is a need for its subsequent provision.
2. More pronounced segmentation of demand depending on the consumer's income, price, subjective characteristics of the significance of the service, the lifestyle of the buyer, etc.
3. The service is differentiated both in terms of quality level and consumer characteristics. This can be explained by the fact that the demand for it usually has an individualized, personalized character, which is a great incentive to create more and more new services.
4. The service market is determined by a localized character or by local segmentation. Usually a certain type of services is observed in one "geographic" area. This is due to certain climatic conditions, traditions that exist in this area, remoteness from large centers, etc.
5. Non-price barriers when entering the market. This is due to the fact that potential consumers pay attention not only to the price, but also to the quality of service delivery, service, etc.
6. The predominance of small businesses on the market, which provides its flexibility, as they react more quickly to changing consumer preferences, and can also operate more efficiently in local markets.

Also, the service market is not marked with clear boundaries. And the main participants are the state, households, private enterprises and non-profit organizations.