Product vs. Service

Understanding the difference between a product and a service is key in business.

What is a Product?

A product is a tangible item that can be touched, seen, and physically owned.

• Tangible: You can hold it.
• Owned: You can buy and keep it.
• Stored: It can be kept in inventory.
• Consistent: Usually the same every time.

Examples: A smartphone, a car, a book, a laptop, a piece of clothing.

What is a Service?

A service is an intangible activity or performance that is provided to you. You experience it, but you don't own a physical item.

• Intangible: You cannot touch or hold it.
• Experienced: You consume it as it's delivered.
• Not Stored: Cannot be kept in inventory.
• Variable: Can differ slightly each time.

Examples: A haircut, legal advice, transportation, consulting, a medical check-up.

Key Differences:

The main distinctions are:

• Tangibility: Products are physical; services are not.
• Ownership: You own a product; you experience a service.
• Storage: Products can be stored; services cannot.
• Production/Consumption: Products are often made before you buy them; services are created and used at the same time.