
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.