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Question
Differentiate between a product and a service.
Solution
| Basis of Distinction | A Product | A Service | |
| 1. | Tangibility | It can be seen, touched and felt. | Services cannot be seen and touched. |
| 2. | Storage | A product is durable and can be stored. | There is simultaneous production and consumption of services. |
| 3. | Inseparability of buyer and seller | Fully separable; remote transactions are possible. | Not separable |
| 4. | Standardisation | Products can be standardised. | Services can rarely be standardised. |
| 5. | Time lag | Products can be brought in advance of need. | Services cannot be brought in advance of need. |
| 6. | Replacement | A product can be replaced. | A service delivered cannot be replaced. |
| 7. | Ownership | It can be transferred easily. For example, when you buy a car the ownership of the car is transferred from the seller to you. | Ownership of services cannot be transferred. |
| 8. | Examples | Furniture, cloth, TV, washing machine, car, scooter are examples of products. | Teachers, doctors, drycleaners, courier firms, banks etc., all provide services. |
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