Many will think that a product and a service are two easily distinguishable terms. For example, it is very clear that when you buy a computer you are buying a product, and when you call the computer technician to fix it you are requesting a service.

However, sometimes the line between the two concepts seems unclear. For example, when you go to a restaurant, do you buy a product or request a service?

In this article, we will explain the differences between product and service , as well as give examples to better understand it.

What is the difference between product and service?

Let’s take a closer look at how the services and products differ.

1. Tangible vs. intangible

This may be the clearest difference. A product is something that exists physically, that we can touch, taste, smell, see and even hear. In contrast, a service is made of physical matter, since it is an action.

The difference between a tangible product and an intangible service is at the time of sale. While the product was already there, the service is only perceived after it has been received .

2. Storable vs. perishable

This is another difference that is also very easy to understand. The products are storable, at least for a period of time. In contrast, services simply cannot be stored , because they are actions.

For example. A car dealer sells products, which, if not purchased, are parked in the garage. If the weekend comes and the shop closes, the product will still be there.

However, if what is offered is a car rental service, if there is a day when you do not rent it, you are not offering the service. It’s not that the service is saved, it’s just that it’s not there.

The storage capacity of a product must be taken into consideration , since aspects such as the expiry date or the surplus can lead to economic losses.

As far as services are concerned, it is important to make sure that your offer is made to a market interested in it, and you should also take into account what are the most appropriate times to offer it. Although this is something that will not expire, you must bear in mind that if you offer it on days when there are no customers you are offering something that people simply do not demand.

3. Involvement vs. acquisition

The services are not something physically perceptible, since they arise at the moment when someone wants to receive them. Basically, there is service when there are clients . For example, a masseur does his job when there is a client who requests it. Massages are not something material, since they are received.

Another aspect of the services is that they are highly customizable, unlike the products.

For example, it’s not the same to go and buy a suit, a product, as it is to go and have it made, a service. In the first case, although there may be several sizes and types of suits, it is a product that is already made in the factory. On the other hand, going to have it made means having it measured and taking into account exactly how you want it.

4. Need vs. trust

The products are made with a basic function, which is to satisfy the need for which they were made. If you buy a dishwasher and it cleans well, then it is a good product.

This does not happen so clearly with services. When a service is received, the criteria for considering it as good are totally subjective . They depend on each person who receives it.

When you decide to go to a restaurant or a hairdresser’s, the confidence you have in the professionals who work there will largely determine whether you go to those particular establishments.

This is not to say that people choose products out of extreme need rather than trust their brand, previous experience with it or recommendations from others, however, the decision to buy a brand of milk or a type of razor is not something that takes long to decide.

5. Homogeneity vs. heterogeneity

Products are usually the result of a mass production chain . The object is designed, the moulds are created and several thousand are made a week. All of them are practically the same. The products, in mass production, follow very specific standards. For this reason, if a product is purchased that is defective, it can be returned or repaired.

However, the quality and characteristics of a service will depend on many factors. Several people can offer the same service and yet carry it out in very different ways.

It is ideal for companies to have quality criteria when offering a service, or something so that, in case the customer is dissatisfied, he can be compensated in some way.

6. Customer-Supplier Interaction

When a service is produced, at least two people must be involved: the client and the supplier. Therefore, to ensure that the client acquires the service being offered, the supplier must take great care of the business relationship .

In relation to the previous point, it is important that the company guarantees that quality standards are met when offering the service.

Aspects such as the image of the employee and his or her ability to communicate, together with the physical space in which the action takes place, become very important when what is offered is something intangible such as a service.

Bibliographic references:

  • Breivik, E. (1995) Evaluation Differences Between Goods and Services: The Role of Product Intangibility (Deprecated Thesis). Institute of Marketing, Norwegian School of Economics and Business Administration. Bergen, Norway.