We all use numerous Products and Services for different purposes, yet Product and Services are two words often confusing. Product and Service sound like synonyms and are used interchangeably many times. Both the terms are similar yet different.
Products and Services serve the purpose of satisfaction and helping the customers. The significant difference between a Product and a Service is that the former is tangible, meaning it can be seen, while the latter is intangible, meaning it can not be seen and felt.
Comparison Between A Product And A Service
| Parameter | Product | Service |
|---|---|---|
| Purpose | A Product’s sole purpose is to satisfy the customers’ demands and wants. | A Service’s only purpose is to satisfy the desires of the customers. |
| Tangibility | It can physically be seen or held. Thus, it is tangible. | It can not be seen or held. Thus, it is Intangible. |
| Usage | It can be used over and over again. | It can not be used repeatedly; it can only be used once. |
| Storage | It can be stored or kept anywhere. | It can not be stored anywhere. |
| Transfer of Ownership | There is a transfer of ownership that results after the purchase and sale of a product. | The purchase and sale of any Service do not result in any transfer of ownership. |
| Return | With the help of a mutual agreement between a buyer and a seller, a product can be returned back to the seller. | It is not possible to return the Service back to anyone. |
| Trial | Before launching in a market, a product must go through more trials than a Service. | Before launching in a market, a Service has to go through fewer trials than a Product. |
| Comparison | A Product’s quality can be rated with other Products. | A Service’s quality can not be compared; it can only be rated. |
| Marketing | It is easier to do marketing of various products than that Services. | It is more difficult to do marketing of services than that Products. |
| Example | Automobiles, Furniture, Home Appliances, Electronics, Clothes, Books, Crockery, Stationery, Houses, Property, etc. | A lawyer fighting a case, a joker entertaining people, people enjoying rides of an amusement park, a postman delivering postcards, etc. |
Major Differences Between A Product And A Service
What exactly is a Product?
A Product is anything that can be seen and felt. Any product’s purpose is to fulfill a customer’s needs and wants. A Product has to go through many trials before it is approved to launch in a market. A Product can be used again and again, and it can be stored anywhere one desires.
It can be returned to the seller with a mutual agreement. A Product’s quality can be compared with the same other products. There is usually a transfer of ownership from the seller to the buyer. Products include Cars, Clothes, Makeup, bikes, Books, Mobile Phones, etc.
Features of a Product
- Any article that is put on for sale and can be seen or held is known as a Product.
- It is tangible.
- It can be used over and over again.
- It can be stored somewhere.
- It can be returned to the seller with a mutual agreement.
- Its quality can be compared with other Product’s quality.
- Buying a Product changes its ownership from the seller to the buyer.
- Examples: Clothes, Mobile Phones, Cars, Bikes, Make-up Products, Electronic Devices, Watches, etc.
Key Differences: Product
- A Product is anything that can be seen & felt and put on for sale to fulfill customers’ desires. The main feature of the Product is that it is tangible.
- A Product can be used again and again.
- If a customer is dissatisfied with the Product, he can return it to the owner.
- A Product can be stored in a home or warehouse.
What exactly is a Service?
A Service is anything that can not be seen or held. Like a Product, a Service aims to satisfy customers’ needs and wants. However, the most important service feature that differentiates it from a Product is that a Service is intangible.
It can not be seen or felt, it can not be used over and over again, it can not be returned to the seller, it does not transfer the ownership from the seller to the buyer, it can not be stored anywhere, and most importantly, its quality can not be compared with other services.
Examples of Services include a teacher teaching in a class, house help cleaning the house, Make-up Artists doing make-up, etc.
Features of a Service
- Anything that is put on for sale but can not be seen or held is known as Service.
- It is intangible.
- It can not be used over and over again.
- It can not be stored anywhere.
- It can not be returned to the seller.
- It can not be compared with other services, and the customers can only rate it.
- Buying any Service does not result in a change of ownership from the seller to the buyer.
- Examples: a person making the delivery of products, a teacher teaching, a technician doing the regular Service of an electronic item, a doctor checking up on the patient, etc.
Key Differences: Service
- A Service is anything that can not be seen & felt and is put on for sale to fulfill customers’ wants.
- The main feature of Service is that it is intangible.
- A Service can not be used again and again.
- Unlike Products, a Service can not be returned.
- A Service can not be stored in a home or warehouse.
The Contrast Between A Product And A Service
Origin of the word
- Product – The word Product originated from the English word “produce” and from the Latin word “product,” which means “something produced,” which originated from another Latin word, “producer,” which means “bring forth.”
- Service – The word Service originated from the Old English word “servise” and from the Latin word “servitium,” which means “slavery,” which originated from another Latin word, “servus,” which means “slave.”
Meaning
- Product – Any article that can be physically seen or held is known as a Product.
- Service – Anything that can not be seen or held but fulfills a customer’s desires is known as a Service.
An actual life situation of Product vs. Service:-
Imagine yourself needing some make-up products and a make-up artist. When you buy make-up products, they are a “product” as you can store your make-up anywhere you want, reuse it, and you own those products. Now you want to hire a make-up artist for a vital function. The make-up artist will give you a “service” when they do your make-up. You can not use this Service again in the future (without paying again), you can not store it anywhere, and this Service does not make you its owner.
Tangibility
- Product – A Product is Tangible.
- Service – A Service is Intangible.
Storing
- Product – A Product can be stored anywhere one desire to keep it, whether in a warehouse, showroom, or home.
- Service – It is not possible to store a Service anywhere.
Use
- Product – A Product can be used over and over again.
- Service – It is not possible to use any Service again and again. A Service can be consumed only once.
Return
- Product – With the help of a mutual agreement between buyer and seller, it is possible to return a Product to the seller.
- Service: In any case, returning the Service is impossible.
Trial
- Product – A Product has to go through more trials than a Service before launching in a market.
- Service – A Service has to go through lesser trials than a Product before launching in a market.
Transfer of Ownership
- Product – With the purchase and sale of any article, ownership is usually transferred from the seller to the buyer.
- Service – The purchase and Sale of a Service do not result in the transfer of ownership from a seller to a buyer.
Comparison
- Product – A Product’s quality can be compared with other Products’ quality.
- Service – It is impossible to compare one Service’s quality to another. One’s experience with a Service can only be rated.
Marketing
- Product – The marketing and advertising of a Product are more manageable than marketing a Service.
- Service – The marketing and advertising of a Service are more complex than a Product.
Focus on Quality
- Product – One has to focus more on a product’s quality when involved in buying and selling different Products.
- Service – The focus on the quality of a Service is lesser than that of a Product.
Examples
- Product – Examples of various Products include Furniture, Electronics, Houses, Clothes, Automobiles, Crockery, etc.
- Service – Examples of various Services include house help cleaning the home, a teacher teaching in a school, a waiter serving the food, a make-up artist doing the make-up of someone, and a doctor treating a patient.
Conclusion
Whatever we buy and sell are two things, either a product or a service. These terms are so confused with one another that people use these terms interchangeably many times.
The significant difference between a Product and a Service is that the former can physically be seen and held while the latter can not be.
A Product is tangible, while a Service is intangible. Another essential difference between the two is that the Product can be used repeatedly, whereas a Service can be used only once.
Frequently Asked Questions (FAQs)
Q1. Explain the difference between a Product and a Service with the help of an example.
When you buy books from school for your next class, you pay for them. You own those books and can store them anywhere you want, see them, and use them repeatedly; thus, books are a “Product.”
There are teachers in the school to teach you, and you pay the same as school fees. Therefore, teachers are providing a “service” by teaching students. You can not put teaching anywhere, you are not the owner, and you can not see it. Thus, it’s a service.
Q2. Is there a transfer of ownership in every buy and sell of a product?
Yes, there is a transfer of ownership between the seller and buyer whenever there is a purchase and a sale of any product. Before the acquisition, a seller is the product owner, but after the sale, the buyer is the owner of the very Product.
Q3. What are the significant differences between a Product and a Service?
The significant differences between a Product and a Service are –
1. Products are tangible, whereas Services are intangible.
2. Products can be consumed repeatedly, but it is impossible to consume a Service repeatedly.
3. Products can be kept anywhere one desires, but a Service can not be put anywhere.
4. A Product’s quality can be compared with another Product’s quality, but it is impossible to compare the quality of a Service with another Service. A 5. Service can only be rated as per the customer’s own opinion.
6. It is possible to return a product to the seller, but a Service can not be returned back.
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