Goods & Services (SQA National 5 Business Management): Revision Note
Exam code: X810 75
The nature of goods
Goods are tangible products that are physically transferred from businesses to consumers
Goods can be durable or non-durable
Durable goods are those that can be used time and again
Examples include refrigerators, furniture and mobile phones
Non-durable goods are consumed soon after they are purchased
Examples include chocolate bars, washing detergent and takeaway coffee
The nature of services
Services are intangible products that are provided and consumed at a particular time or place to consumers or businesses
Examples of services
Type of service | Explanation | Examples |
|---|---|---|
Consumer services |
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Commercial services |
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Case Study
Commercial services provided by Caledonian Facilities Management
Caledonia Facilities Management (CFM) is a Glasgow-based business that provides cleaning, security, and waste management services for offices, shops, and factories across Scotland. One of its biggest contracts is with a chain of convenience stores
When the client expanded to 30 new stores, CFM agreed to take on all the additional cleaning and maintenance work. To manage this, the company hired 20 new staff and invested in better scheduling software to coordinate teams across different locations
As a result, CFM improved efficiency and strengthened its relationship with the client, who renewed their contract for another three years. The investment also helped CFM win more contracts with other retailers
Examiner Tips and Tricks
You should be able to explain that goods are tangible (you can touch them) while services are intangible (something done for you)
To remember this, think “Goods are Grabbed, Services are Served.” Always use examples — like a phone (good) and mobile repair (service)
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