What is the difference between product and service?

Let's see what are the differences between products and services, and how to distinguish them.

Many will think that a product and a service are two easily distinguishable terms. For example, it is very clear that when you buy a computer you are buying a product, and when you call a computer technician to fix it you are requesting a service.

However, sometimes the dividing line between the two concepts seems to be unclear. For example, when you go to a restaurant, are you buying a product or requesting a service?

In this article we will explain the differences between product and serviceand give examples to understand it better.

What is the difference between product and service?

Let's take a closer look at the differences between services and products.

1. Tangible vs. intangible

This may be the clearest difference. A product is something that exists physically, that we can touch, taste, smell, see and even hear. A service, on the other hand, is made of physical matter, since it is an action.

The difference between a tangible product and an intangible service is at the moment of sale. While the product was already there, the service is only perceived after it has been received..

2. Storable vs. perishable

This is another difference that is also very easy to understand. Products are storable, at least for a period of time. On the other hand, services simply cannot be stored, services simply cannot be storedbecause they are stocks.

For example. A car dealer sells products, which, if not bought, are parked in the garage. If the weekend comes and the store closes, the product will remain there.

On the other hand, if what is offered is a car rental service, if there is a day in which it is not rented, it is no longer offering the service. It is not that the service is stored, it is that it is not there at all.

The storage capacity of a product must be taken into considerationThe storage capacity of a product must be taken into consideration, since aspects such as expiration date or surplus can lead to economic losses.

As for services, it is important to make sure that they are offered to a market interested in them, and it is also important to take into account the most appropriate times to offer them. Although it is something that is not going to expire, it should be taken into account that if it is offered on days when there are no customers, it is offering something that people simply do not demand.

3. Involvement vs. acquisition

Services are not something physically perceptible, since they arise the moment someone wants to receive it. Basically, there is service when there are customers. For example, a masseur does his job when there is a client who requests it. Massages are not something material, since they are received.

Another aspect to take into account about services is that they are highly customizable, unlike products.

For example, going to buy a suit, a product, is not the same as going to have it made for you, a service. In the first case, although there may be several sizes and types of suits, it is a product that comes from the factory. On the other hand, going to have it made implies that they take your measurements and that they take into account exactly how you want it.

4. Need vs. trust

Products are made with a basic function, which is to satisfy the need for which they were made. If you buy a dishwasher and it cleans well, then it is a good product.

This is not so clear-cut with services. When a service is received, the criteria for considering it to be good are totally subjective.. They depend on each person who receives it.

When you decide to go to a restaurant or a hairdresser's, the confidence you have in the professionals who work there will determine to a large extent whether you go to those particular establishments.

This is not to say that people choose products out of extreme necessity rather than trusting their brand, previous experiences with it or recommendations from others, however, the decision to buy a brand of milk or a type of razor is not something that takes a long time to decide.

5. Homogeneity vs. heterogeneity

Products are usually the result of a mass production chain.. The object is designed, the molds are created and several thousand are made per week. All of them practically the same. The products, in mass production, follow very specific standards. For this reason, if a product is defective when purchased, it can be returned or repaired.

On the other hand, the quality and characteristics of a service will depend on many factors. Several people can offer the same service and yet perform it in very different ways.

It is ideal for companies to have quality criteria when offering a service, or something so that, in case the customer is dissatisfied, he can be compensated in some way.

6. Customer-supplier interaction

When a service is produced there must be at least two people: the customer and the supplier. That is why, in order to guarantee that the customer acquires the service being offered, the supplier must take great care in the commercial relationship, the supplier must take great care in the commercial relationship.

In relation to the previous point, it is important for the company to ensure that quality standards are met when offering the service.

Aspects such as the employee's image and communication skills, together with the physical space in which the action is carried out, become very important when what is offered is something intangible such as a service.