Product Vs Service
The product and service are the core concepts of marketing. Usually, the tangible item is called the product, and an intangible item is a service.
In fact, both products and services are the same. Here is how – traditionally products and services are treated differently.
However, the modern marketing concept suggests that a product includes a service, an idea, an organization, and even a person.
However, there is a huge difference between product and service. Let’s differentiate between products and services.
What is a Product?
A product is an item that can be offered to consumers and that holds the capacity to satisfy their needs.
Usually, products are those which are tangible or can be touched.
Product is the first and foremost significant part of the marketing mix. It is the starting point of all the marketing activities of any organization.
Products have mainly three levels: core, actual, and augmented.
The core product is the main benefit the products assure to offer to its buyers.
Actual, as the name suggests, is the product that has been produced now and can be touched and used.
And, an augmented product means the extended version of the actual product. It is the addition of additional features to the actual product.
What is Service?
Services can be defined as any activity or task that a company offers to another entity, which may involve providing facilities or products.
These services may or may not be connected to a physical product.
When a company’s primary focus is on offering services rather than physical goods, the services themselves become the core product of the company.
Examples of such services include repair and maintenance, healthcare and medical services, insurance, banking, research, consultancy, transportation, communication, and more.
Difference Between Product and Service
Here are the 10 key differences between products and services with their bases of difference.
These differences highlight the unique characteristics of products and services in various business contexts.
Tangibility
Product: Products are tangible, meaning they can be seen, touched, and physically possessed.
Service: Services are intangible, as they cannot be touched or physically owned.
Nature
Product: Products are homogeneous, meaning they can be standardized and replicated.
Service: Services are heterogeneous, as their quality can vary based on provider and situation.
Creation Location
Product: Products are created in factories or manufacturing units.
Service: Services are created during buyer-seller interactions, such as customer support or consulting.
Storage
Product: Products can be stored in inventory until they are sold.
Service: Services cannot be stored for future use; they are consumed as they are delivered.
Transfer of Ownership
Product: Ownership of the product is transferred from seller to buyer upon purchase.
Service: There is no transfer of ownership in services; customers only use or experience them.
Quality Measurement
Product: Product quality can be easily measured through physical attributes, testing, or inspection.
Service: Service quality is difficult to measure as it depends on subjective customer experiences.
Customization
Product: Products are often less customizable, as they are typically mass-produced.
Service: Services are highly customizable, and tailored to the needs and preferences of the customer.
Time of Consumption
Product: Products can be consumed at any time after purchase.
Service: Services are consumed in real time, during the interaction with the provider.
Perishability
Product: Products are non-perishable and can remain in inventory for extended periods if stored properly.
Service: Services are perishable, as they cannot be stored or saved for future use.
Dependency on Customer Participation
Product: Products do not require the active participation of customers in their creation or delivery.
Service: Services often depend on customer participation during the delivery process, such as providing information or feedback.
These distinctions between products and services highlight their unique roles in fulfilling consumer needs and preferences in the marketplace.
Joshep Mahesh holds Bachelor in Management (BiM) Degree. He loves to share his business knowledge in his free time.