What is the difference between good and service

The time and effort gone for giving service to the customer is intangible. Both ownership and intangibility are old school differences between goods and services. When comparing the difference between goods and services we have to look at the involvement of customer as well.

In services involvement of customers is much more than in products. The same goes for vending machines as well as for self service restaurants.

In case of products, mass manufacturing is common. And mass manufacturing means uniformity. However, services involve a lot of manual labour due to which the quality may vary each time.

Uniformity in services is a factor which each service owner tries for. For example — The major challenge of food chains like Subway , Pizza hut and dominos is to give the same quality over and over again, whereas in local restaurants the quality of food may vary time to time from the same restaurant. As quality varies from time to time and the involvement of customer is maximum, evaluation of different services becomes tougher.

Thus we can evaluate that HDFC service is better because they have more reach to the end customer. But how do we evaluate how a barber cuts your hair. Production and consumption of services happens at the same time. This does not mean that the raw material is not present to provide the service. For example in a restaurant, a dish is made only after you order it. The raw material and the chef might be present. Goods are material items that can be touched, seen or felt and are ready for sale to customers.

Service is an activity which one party can offer to another party without transferring the ownership of anything. Goods are tangible and homogeneous in nature.

Goods are the physical objects that pepole, businesses, or governments buy, whereas Services are the actions or activities that one person performs for another. Answer: The law of demand says that at higher prices, buyers will demand less of an economic good. The law of supply says that at higher prices, sellers will supply more of an economic good.

Products and goods are used as synonyms in common parlance. However, a good is something that is tangible in contrast with the services which are intangible. Anything, whether good or service offered in the market is a Product. Goods may be consumer goods or Industrial Goods. Goods can be anything from merchandise, supplies, raw materials to already completed products.

All items that are movable and are sold to a particular buyer. Within the category of consumer products, there are four main classifications: convenience goods, shopping goods, specialty goods, and unsought goods. Economic goods are of two types: individual goods and social goods. The two types are similar in that each serves the need of human beings and each is produced only through the use of scarce resources.

They differ, however, in the character of their demand. Service is an activity which one party can offer to another party without transferring the ownership of anything. Nature Goods are tangible and homogeneous in nature.

Services are intangible and heterogeneous in nature. Ownership In case of goods, transfer of ownership is possible. In case of services, transfer of ownership of title is not possible. Consumption Production and distribution can be separated from consumption in case of goods. In case of services production, distribution and consumption occur at the same time. Inventory Inventory of goods is possible.

It can be kept in stocks for future sales. Inventory of services is not possible because of it intangible nature services cannot be kept in stocks. Quality In case of goods, the quality of can be measured and compared with other goods.

In case of services the quality cannot be measured. Separable Goods it can be separated from seller. Services cannot be separated from the service provider. Return Back Customer can return purchased goods if not satisfied and can get refund. Services once bought cannot be returned or replace but in some cases can get refund of money.

Participation In case of goods customer don't participate in production. Customer participate in the production process of services Core value In case of goods the core value is it produce in a firm or factory.

In case of service the core value is it produce at the time of interaction between buyer and service provider.