Difference between goods and services:

All of us buy many products for our personal and commercial purposes every day, some of them are tangible and others are intangible. Based on this tangibility, the products are differentiated as Goods and Services. The goods are of a tangible nature and the services are intangible and inseparable by nature. This article has as main objective to communicate the differences between goods and services.

Goods:

Goods are the things that can be offered to a market place for attention, acquisition, use or consumption that can satisfy a consumer need or desire. The goods are tangible in nature that they can touch, smell grip, etc. before buying them.
Products are again classified into two categories based on their durability. They are durable goods, which last for many years, such as refrigerators, washing machines, etc., and non-durable goods that can only last a short time, such as consumer goods, soaps, powdered shampoo, etc.

The goods are the products that are marketed in the market. There is a time interval in the production, distribution, and consumption of goods. When the buyer buys goods and pays the price, the property is transferred from the seller to the buyer.

Services:

Philip Kotler defined “The service as an activity or benefit, which one party can offer to another party that is essentially intangible and does not result in the ownership of anything. The production of the service may or may not be linked to a physical product.”
The services are of an intangible nature and cannot be seen, touched, grabbed, smelled, tasted, etc. The services are perishable in nature and should be used in a very low period of time. Services cannot be stored or produced in advance as we do with products.

They can only be delivered at a particular time and, therefore, are perishable in nature. They lack a physical identity. The services cannot be distinguished from the service provider. The point of sale is the basis for the consumption of services. The services cannot be owned but can only be used.

Comparison Chart Between Goods and Services:

BASIS OF COMPARISONGOODSSERVICES
MeaningGoods 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.
NatureGoods are tangible and homogeneous in nature.Services are intangible and heterogeneous in nature.
OwnershipIn case of goods, transfer of ownership is possible.In case of services, transfer of ownership of title is not possible.
ConsumptionProduction and distribution can be separated from consumption in case of goods.In case of services production, distribution and consumption occur at the same time.
InventoryInventory 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.
QualityIn case of goods, the quality of can be measured and compared with other goods.In case of services the quality cannot be measured.
SeparableGoods it can be separated from seller.Services cannot be separated from the service provider.
Return BackCustomer 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.
ParticipationIn case of goods customer don't participate in production.Customer participate in the production process of services
Core valueIn 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.

Also read: Services,  Concept of Production ManagementFeatures of Service, Overcome The Challenges of Service Marketing, Importance of Production managementConcept of EntrepreneurshipProcess of EntrepreneurshipNeed of EntrepreneursBarriers to Entrepreneurship


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