The main difference between product and service is that products are tangible while services are intangible.
We all need different products and services to meet our needs and desires . In marketing, products and services are two closely related concepts. Products are things that have a physical existence; When we buy a product, we acquire an asset. Services, on the other hand, refer to transactions in which no physical goods are transferred from the seller to the buyer.
Key areas covered
1. What is a product - definition, functions, examples 2. What is a service - definition, functions, examples 3. What is the difference between product and service - comparing the main differences
Product, service, tangible
What is a product?
A product is an item for sale. Most importantly, it is a physical item that is tangible. We can sell, buy, store and transport products. When the sale is complete, we can move, return, or even replace the product with another product. If you look around you will see a lot of products around you. Some examples of products are cell phones, laptops, vehicles, furniture, and groceries.
In the manufacturing industry, manufacturers procure products as raw materials and sell their products as finished goods. They make every product for a price and sell it for a price. In addition, the price of a product can vary based on quality, marketing and market.
However, in marketing we use the term product to refer to anything we can sell, whether it is a physical item or not. According to this logic, we sometimes also name flights, insurance, software services, etc. as products.
What is a service
We can define a service as a transaction in which no physical goods are transferred from the seller to the buyer. It is basically a job that one person (s) do for another person. These are activities that other people, companies, government do for you. Education, health care, banking, insurance, and transportation are some examples of services. Services are immaterial and not physical, as opposed to goods that have a physical existence. For example, when you book a vacation, the booking agent provides you with a service; the booking itself is abstract - you cannot touch, save or transport it.
A country's government also offers various public services to its citizens. For example, it ensures the safety of citizens through security services (army, police, paramedics, fire brigade, etc.). Healthcare, town planning, waste management, and public broadcasting are some other government services.
Sometimes it can be difficult to tell the difference between a product and a service as the two are linked. For example, in healthcare, both products and services are essential to a patient's health. Products here are drugs as well as medical and diagnostic devices, while services are the expertise of doctors and nursing staff.
Difference between product and service
Products are objects or systems that are made available to the consumer, while services are transactions in which no physical goods are transferred from the seller to the buyer
While products are tangible, services are intangible.
Products are manufactured, stored, and transported, while services cannot be manufactured, stored, or transported.
Electronic devices, furniture, food, and vehicles are some examples of products, while cleaning, car repair, medical exams, haircuts, etc. are some examples of services.
In addition, we can return or replace the products, but not for services.
The products sold may be the same, but any delivery of a particular service is never exactly the same as the previous or future services.
Products are objects or systems that are made available to the consumer, while services are transactions in which no physical goods are transferred from the seller to the buyer. The main difference between product and service is that products are tangible while services are intangible.