Assessment of Skills and Knowledge(ASK) in Fundamental Marketing Concepts Practice Test

A business that provides a pure service is one that offers intangible products or services that cannot be touched or owned, and that primarily focuses on delivering a specific service rather than a physical good. An insurance agency exemplifies this concept, as it provides coverage and protection through policies that are intangible. Clients purchase peace of mind and financial security in the event of a loss or mishap. There are no physical products transferred; rather, the service is built upon relationships, expertise, and promises.

In contrast, a dry cleaner, an appliance repair service, and a maintenance company all involve the transformation or management of physical items, which leads to a tangible result. For example, dry cleaning is a service that involves cleaning clothes but ultimately results in the cleaned garments being returned to customers. Similarly, appliance repair services deal with physical appliances and their repair, while a maintenance company provides upkeep for facilities and equipment. These businesses incorporate both service and tangible outcomes, making them distinct from a pure service provider like an insurance agency.