What is Productization Of Services? and why it is important?

What is Productization of services? why is it so important to the service-based companies? How companies go about Achieving it?

This one of the part of services marketing. Before this please check the Definition and Characteristics of services.

What is Productization of services?

Productization of services

Productization of services is transforming services into more like products or goods by using different ways.

why Productization of services is important to companies?

Services providers provide services which are heterogeneous from one customer to another and each time it will different.

Whereas the product will be the same as one customer to another, even at whatever time.


Services from the restaurant will be different from customer to customer, each time there will be little change in taste in food.

But like a car will not differ from customer to customer and whenever a customer buys it will be same.

Customer can trust the product easily because it will be same at all the time. And the customer will have doubt that services might be different for each time.

There is an importance of productization of services for a company is to gain more trust.

How companies go about Achieving it?

Productization of services is achieved by the companies are:-

1) Physical Evidence

By increasing more physical evidence like Reviews, Services bills, other equipments to perform a service, etc. Which can show trust in services that are been provided by the company.


Services provider like Restaurants have tables, chairs, bills, and reviews, etc to make more trustable to customers.

2) More durable:-

Services are perishable which means that can be used for one time, it cannot be stored in storages, etc. But due to technology, there can be an increase in durability of services.


Concert where it will happen once, but this can be stored with the help of cameras, can be replayed at whatever time in youtube or in other streaming sites.

3) Homogenous:-

With the help of technology making services more homogenous means similar to one service to another. Which means have similar items or methods in performing the services.


Companies like Oyo rooms and Treebo, where they provide a similar type of rooms or minimum promised services as similar as to everyone in every hotel.

4) Separability:-

Whereas services are inseparable in production and consumption, but with the help of the technology a consumer can consume at different time after produced service.


online courses, online videos, whereas produced at one time and consumption is done on other time by the users. or Storing restaurants foods and selling it at other times.

Why was NAFTA created?

Why was NAFTA created?

The NAFTA stands for North American Free Trade Agreement it is one of the biggest trading blocks. Why was NAFTA created? , NAFTA is created to eliminate the barriers of import and export between the countries. The NAFTA consist three countries Canada, Mexico, and the United States.

How has NAFTA affected the U.S. economy?

As into the NAFTA, the barriers are low and the tariff implied on the import and export are less so it increases the trading between the countries and it has a positive impact on the GDP of U.S by around 0.5 percentage ($80 billion). It also has a negative impact on the U.S because as the trading increase the people are losing their job because of availability of the cheaper product from the other countries (15 to 20 percent more on average than the jobs that were lost )

How has it affected the Mexican economy?

The Mexican economy is very diverse in nature. Mexican economy is divided into two parts. First is fast growing economy with globally competitive multinationals and cutting-edge manufacturing plants and other is traditional enterprises. Here both the economy is moving in a different direction the traditional market is going into a huge loss due to global tradings in NAFTA and the multinational are growing with sustainable growth

What impact has it had on Canada?

The Canadian economy is boomed with the help of NAFTA. The lower tariff barriers between the countries helped in cross-border gains. The Mexican investment in Canada becomes almost triple after the NAFTA. As well as the U.S investment holds more than 50% in total FDI stock of Canada. The Canadian export to the U.S also grew ($110 billion to $346 billion) under the effect of NAFTA.

What’s next for NAFTA?

In 2016 Donald Trump criticizing the pact for bringing U.S. job losses. Trump increased the import tariff coupon on steel and aluminium. In early 2018 and threatening to do the same with autos. In August 2018 U.S administration struck a deal with Mexico and Canada. which Trump has labelled the U.S.-Mexico-Canada Agreement (USMCA). All the parties agreed to the number of changes. New labour stipulations are added automobiles factories paying at least $16 an hour, Instead have a sixteen-year timeframe, with a review after six years