Differentiating goods and services retailing using form and possession utilities

This paper presents an overview and critique of the traditional distinction between retail goods and services. Of particular concern is the use of the “intangibility” criterion as a basis for categorizing and conceptualizing retail and service businesses. The “goods–services continuum” provides little clarification as to the issues of retail classification or strategy development. In place of this continuum, the paper presents a schema based upon the utilities provided to consumers by retail businesses. This retail utility schema functions as a guide for theory and strategy formulation in retail and service businesses.