Product Vs Service.

A product is a physical entity that you can

see,touch and possibly consume. Eg: a car, a cake or a computer.

A service is any primary or complementary

activity that does not directly produce a physical product. Eg;courier service,a taxi service,haircut.

Difference between products and goods:

Goods are tangible while services are intangible.

Goods are consumed while services are

experienced. Service can be highly differentiated every time it is delivered unlike products. Services are delivered by people or technology interacting with the customer.

Tangible Vs Intangible.
Car is an example of a product

Money transfer is a service

Consuming vs experiencing

You consume the cola

You experience the You experience the journey journey.

Same service can be highly differentiated.

Customer interaction for providing service:

Customers participation:
Customers participate in many service

processes,activities and transactions. Many services require that the customer be present physically ,on a telephone or be online. A service encounter is an interaction between the customer and the service provider.

Services Vs Products.
Services cannot be stored as physical inventory.

The demand for services is totally time dependant

and is highly perishable. Once a hotel room or an airline seat is empty at the end of the day it is a total write off and cannot be replaced.

Services vs Products.
The demand for services is more difficult to

predict and manage than the demand for goods.. Arrivals at banks,supermarkets,airports canot be accurately predicted. Whereas the demand for cars for a whole year can be predicted with fairly high rate of accuracy.

Services vs products
Service management skills are vital for

Successful service encounter. Service encounters require superior operations,strong human behaviour and Marketing skills. In goods producing industries ,human interaction skills are of lesser importance.

Service Vs Products
Patents do not protect services. The intangible nature of products make it possible

to imitate the process without appearing to do so. It is very difficult to completely differentiate a service delivery process and classify it as unique and hence be brought under the purview of property rights.

The 7 Ps of service marketing:

Product.

Price
Place Promotion. Process. People Physical evidence.