Question

What is the difference between a service and a good?

Short answer

• Tangibility
• Interaction
• Storage
• Package of features

Step-by-step solution

Understanding the meaning of service and good

Service is the action done by a business for customers which does not involve goods. Anything that is sold and can be touched is known as goods.

Understanding the differences among them

• Services cannot be touched; they are felt, and hence services cannot be patented, whereas goods are tangible and can be patented.
• Services need tointeract with customers, whereas goods are independent of such interaction.
• Excluding the exceptions, services vary from person-to-person, and from time to time, whereas goods remain the same.
• Services cannot be stored and are perishable, whereas goods can be stored and it might not perish as services do.
• Services is a package of features, and goods are individual commodity.