How Services Differ From Goods

Production of goods and services is the concern of economy. The production and distribution identifies how services differ from goods.

Understanding how they differ with each other is the key to determine the marketing and advertising techniques necessary.

Distinctions of Goods and Services

Goods and services have obvious differences based on the characteristics of each. The tangibility factor is the common differentiator used in differentiating the two. This is because a good is tangible and can be used once or repeatedly. On the other hand, service is intangible in such a way that it cannot be touch, taste, see and smell. Likewise, the ownership in goods is transferrable while there is no ownership involved in services.

In terms of quality, the goods are homogeneous from the production to the distribution. Goods can be separated from the seller and does not rely on the source. On the other hand, service is heterogeneous and could not be separated from the provider. Likewise, service may vary in quality, delivery and output every time it is offered. Also, it is dependant on the effort of the provider to achieve quality service yet it varies from the customer, producer as well as daily basis. Another distinction between goods and services is the perishability in terms of services while the goods are non-perishable. This is because goods can be stored for longer time while services once delivered could not be stored and use repeatedly. This is the drawback of services in which they do not bear shelf life. In like manner, goods and services also differ in terms of the processing. This is because goods undergo quality control.

On the other hand, economic motives should not drive goods and services. As a matter of fact, oftentimes goods and services cannot be detached from each other as they are closely linked. This is true when purchasing car in which the car is the good while the sales activities involved pertains to the services. Moreover, the difference between the two is in contrast when determining pure services and pure goods.

Furthermore, the difference between goods and services varies not only in the processes but also in management as well as in determinants. Obviously, in order to provide quality service it is important to ensure reliability, responsiveness, assurance, empathy and tangibility. Likewise, the specifications of the services also depend on some features such as supporting facility, facilitating goods as well as explicit and implicit services. On the other hand, many goods providers are making efforts to provide other service component as part of the business. An example of this is automobile manufacturers that also provide other services such as repair centers. Whatever the difference between goods and services the bottom line is that it ensures customers satisfaction. Thus, it depends to the consumers to choose the goods and services they think are worthy.


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