DIFFERENCE BETWEEN PRODUCTS AND SERVICES: DIFFERENCE BETWEEN PRODUCTS AND SERVICES While a product is concrete, service is an activity or a process eg : while an aircraft is a product, flying to a particular destination is a service. 2. Products are tangible while services are intangible eg : one can touch, see, smell a product one wishes to buy vs. experiencing a foot massage at a spa
DIFFERENCE BETWEEN PRODUCTS AND SERVICES: DIFFERENCE BETWEEN PRODUCTS AND SERVICES 3. Products are homogeneous while service are heterogeneous eg : anybody producing a good can standardize the output. The quality of service depends on who, when and where the service is provided. 4. Product and distribution of goods is separated from consumption. In services, production, distribution and consumption is simultaneous.
DIFFERENCE BETWEEN PRODUCTS AND SERVICES: DIFFERENCE BETWEEN PRODUCTS AND SERVICES 5. The core value of products is produced in the factory while that of services is produced in the buyer – seller interaction 6. Goods can be stored. It is impossible to store services. 7. There is transfer of ownership of goods from the manufacturer to dealer to customer. Eg buying and selling of cars. In services you can have access to the service but cannot own it. Eg : you can stay in a hotel room but cannot own it.