The main difference between product and service is that products are tangible while services are intangible.
We all need different products and services to satisfy our needs and wants. 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 there is no transfer of physical goods from the seller to the buyer.
Key Areas Covered
1. What is a Product
– Definition, Features, Examples
2. What is a Service
– Definition, Features, Examples
3. What is the Difference Between Product and Service
– Comparison of Key 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 the product, return it, or even replace it for another product. If you look around you, you’ll see many products around you. Some examples of products include mobile phones, laptops, vehicles, furniture, and food items.
In manufacturing, the manufactures procure products as raw materials and sell their products as finished goods. They make each and every product at a cost and sell it at a price. Moreover, the price of a product can vary depending on the quality, the marketing, and, the market.
However, in marketing, we use the term product to refer to anything that we can sell regardless of whether it is a physical item or not. By this logic, sometimes we call flights, insurance policies, software services, etc. also as products.
What is a Service
We can define a service as a transaction that does not involve transfer of physical goods from the seller to the buyer. It is basically a work that a person/persons do for another individual. These are activities other people, companies, the government do for you. Education, health care, banking, insurance, and transportation are some examples of services. Services are intangible and non-physical, unlike goods, which have a physical existence. For example, when you a book a holiday, the booking agent is providing you with a service; the booking itself is abstract – you cannot touch it, store it or transport it.
The government of a country also provides various public services for its citizens. For example, it ensures citizens’ security via security services (army, police, paramedics, fire brigade, etc.) Healthcare, urban planning, waste management, and public broadcasting are some other government services.
Sometimes, it can be difficult to identify the difference between product and service as both are interconnected. For instance, in healthcare, both products and services are essential for a patient to get well. Here, products are drugs and medical and diagnostic devices, while services are the expertise of doctors and nurses.
Difference Between Product and Service
Products are objects or systems made available for consumer use while services are transactions where 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 items, and vehicles are some examples of products while cleaning, car repair, medical check-ups, haircuts, etc. are some examples of services.
Moreover, we can return or replace the products, but not so with services.
Products sold can be identical, but each delivery of a particular service is never exactly the same as the previous services or future services.
Products are objects or systems made available for consumer use while services are transactions where 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.