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Difference between Goods and Services

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Posted by Linda Yeboah on Mon, 04/14/2014 - 20:31

There are obvious differences between goods and services that are analyzed based on characteristics of each. A good is a tangible object used either once or repeatedly. A service is intangible. The tangibility differentiator indicates the ability to touch, smell, taste and see which is absent in services. This can be a deterrent to the service receiver to gauge the quality and dependant on the service company reputation. In the case of goods the ownership of the product is transferable from sellers to buyers, whereas in services there is no ownership involved.
On the quality front, with goods it is homogeneous, once produced the quality is uniform across all line of products. They can be separated from the seller/ provider and not dependant on the source for its delivery to the purchaser. With regard to service it is inseparable from the service provider and heterogeneous, where each time the service is offered it may vary in quality, output, and delivery. It cannot be controlled and is dependant on the human effort in achieving that quality hence is variable from producer, customer and daily basis.
Another key distinction is perishability of services and the non perishability of goods. Goods will have a long storage life and are mostly non perishable. Whereas services are delivered at that moment and do not have a long life or cannot be stored for repeat use. They do not bear the advantage of shelf life as in the case of goods like empty seats in airlines. With the production and consumption taking place simultaneously in services, it differs from goods on simultaneity and the provisions for quality control in the process.
Both goods and services need not driven by economic motives. several times goods and services are linked closely and cannot be detached. fr example on purchase of a car, the good is the car, but thye provision of accessories, after sales activities are all services. It is essential to note that the difference between pure goods and pure services are in contrast but most goods and services exist in between with the mix of both. For instance, in restaurant, food refers to goods while the service is the waiters offering, the ambiance, the setting of tables amongst others.

Posted by Appucasper123 on Tue, 02/25/2014 - 11:24

In your point of view, explain why services cannot be stored?

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Posted by Sarah on Sun, 02/23/2014 - 03:33

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