Answer to Question 1
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Answer to Question 2
Some marketers say that everything we buy has some element of a good and some element of a service. They maintain that perhaps only raw materials such as coal or wheat are examples of pure goods. Everything else has been processed, and that processing is a value-added service. Thus, we can examine any business and consider what are its core versus its value-added services. Distinguishing these elements also helps us identify our competition. For example, when a car is purchased, the provision of the automobile itself might be considered the core purchase; it's the corporate fundamentals, the reason the car maker is in business. These are the qualities that the company better get right; they're the basics of what customers expect. The value-added supplemental services are those on which the car company might distinguish itself; it might claim that its financing and service plans are more generous, its people more competent and friendly, etc.
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